Conditions for the acquisition of immovable property
Citizens of all European Union member states, including therefore Maltese Citizens, who have resided in Malta continuously for a minimum period of five years at any time preceding the date of acquisition may freely acquire immovable property without the necessity of obtaining a permit under the Immovable Property (Acquisition by Non-Residents) Act – Chapter 246 of the Laws of Malta (the “AIP Act”).
Citizens of all European Union member states, including therefore Maltese Citizens, who have not resided continuously in Malta for a minimum period of five years may only purchase their primary residence or any immovable property required for their business activities or supply of services without the necessity of obtaining a permit under the AIP Act.
Citizens of all European Union member states, including therefore Maltese Citizens, who have not resided continuously in Malta for a minimum period of five years, require a permit under the AIP Act to acquire immovable property for secondary residence purposes.
Individuals who are not citizens of a European Member state may not acquire any immovable property unless they are granted a permit in terms of the AIP Act.
The minimum purchase price for a non-resident to obtain an AIP permit and purchase immovable property is €115,772 for the acquisition of a flat or maisonette or €192,899 for the acquisition of any other immovable property.
Immovable property acquired by virtue of an AIP permit cannot be rented out.
Acquisition by corporate entities
A body of persons, other than a commercial partnership, established in and operating from an EU member state may freely acquire immovable property that is required for the purpose for which it has been set up as long as it is directly controlled by citizens of a European Union member state.
A commercial partnership established in and operating from an European Union member state (therefore including Malta) may freely acquire immovable property that is required for the purpose for which it has been set up and at least 75% of its share capital is held by a person (or persons) who is a European Union Member state citizen.
Any other body of persons will require a permit which is only granted if the property is required for an industrial or touristic project or as a contributor to the development of the economy of Malta.
Special Designated Areas
There are special designated areas in Malta where there are absolutely no restrictions to the acquisition of immovable property.
The Special Designated Areas are the following:
- Portomaso Development, St. Julian’s, Malta;
- Portomaso Extension I, St Julians, Malta;
- Cottonera Development, Cottonera, Malta;
- Manoel Island / Tigne Point, Tigne/ Gzira, Malta;
- Tas-Sellum Residence, Mellieha, Malta;
- Madliena Village Complex, Malta;
- Smartcity, Malta;
- Fort Cambridge Zone, Tignè, Malta;
- Ta’ Monita Residence, Marsascala, Malta;
- Pender Place and Mercury House Site, Malta;
- Metropolis Plaza, Gzira, Malta;
- Fort Chambray, Ghajnsielem, Gozo;
- Kempinski Residences, San Lawrenz, Gozo;
- Vista Point Marsalforn Gozo;
- Quad Business Towers, Mriehel;
- Southridge, Mellieha.
AIP Application Formalities
In order to obtain an AIP permit the following documents must be submitted to the AIP section of the Capital Transfer Duty Department:
- Duly completed AIP application form.
- A copy of the promise of sale or preliminary agreement of the immovable property being acquired.
- First-time applicants need to provide (i) two passport-size photographs of non-resident applicants and (ii) a photocopy of the passport showing applicant’s particulars.
- Applicants who already owned Immovable property need to provide a copy of deed of sale of previous immovable property.
- Limited liability companies who apply for a permit need to provide (i) Memorandum and Articles of Association of the company (ii) Give details of shareholding directors and (iii) Produce evidence showing that the purpose of the company is for the development of the economy of Malta.
Time-Frame
When the application is approved, the applicant or mandatory will be informed by a notice. In accordance with a Quality Service Charter, the AIP Section is committed to issue the requested permit within 35 days subject to application submitted being correct. A permit is issued against a payment of €233 further to which the applicant may proceed with the deed of sale in respect of the acquisition of the immovable property.
Recent Comments