Buying a Home in Malta

Malta, a beautiful archipelago in the Mediterranean Sea, is a popular destination for expats from around the world. Its rich history, warm climate, and friendly locals make it an attractive place to settle down. However, buying a home in a foreign country can be a complex process, with different laws and regulations to navigate. This guide aims to provide expats with the necessary information to make the home buying process in Malta as smooth as possible.

How Do I Find Houses for Sale in Malta?

There are several ways to find houses for sale in Malta. Online property portals are a popular choice, offering a wide range of properties across the country. Local newspapers and real estate agencies also list properties for sale. It's advisable to engage a reputable real estate agent who can guide you through the process and provide access to properties that may not be publicly listed.

Are There Restrictions on Foreigners Owning Property in Malta?

Yes, there are some restrictions on foreigners owning property in Malta. Non-EU citizens are generally required to obtain a permit from the Maltese government to buy property. However, there are exceptions for properties located in Special Designated Areas (SDAs) where foreigners can buy without restrictions. EU citizens who have lived in Malta for at least five years can buy property without any restrictions.

Does Malta Have an MLS Type System?

Malta does not have a Multiple Listing Service (MLS) like in the United States. Instead, real estate agencies maintain their own databases of properties for sale. This means that it's important to work with a reputable real estate agent who has access to a wide range of properties.

Do Brokers Have Licenses and How Do I Know if They are Licensed?

Yes, real estate brokers in Malta are required to be licensed. You can verify a broker's license by checking with the Malta Financial Services Authority (MFSA). It's important to work with a licensed broker to ensure that all transactions are conducted legally and ethically.

What Documents are Required When Buying a Home?

When buying a home in Malta, you will need several documents. These include a valid passport, proof of address, and proof of income. You will also need a Promise of Sale agreement, which is a legally binding contract between the buyer and seller. This document includes details of the property, the agreed price, and any conditions of the sale.

Do I Need a Lawyer When Buying a Home in Malta?

Yes, it's highly recommended to hire a lawyer when buying a home in Malta. A lawyer will review all contracts, ensure that the property is free from any liens or encumbrances, and handle the transfer of ownership. Legal fees typically range from 1% to 3% of the property's purchase price.

Do People Typically Buy a Property with All Cash or Take Out a Mortgage?

Both options are common in Malta. Some buyers choose to pay in cash, while others take out a mortgage. If you choose to take out a mortgage, you can expect to pay a deposit of around 10% to 30% of the property's value. The rest can be financed through a mortgage from a Maltese bank.

Are There Inspections That Take Place, and If So What is That Process Like?

Yes, property inspections are a standard part of the home buying process in Malta. A professional surveyor will inspect the property to identify any potential issues, such as structural problems or necessary repairs. The buyer typically pays for the inspection, which can cost between €200 and €500.

What are Some of the Pitfalls to Avoid When Buying Property in Malta?

One common pitfall is not thoroughly researching the property and the area before buying. It's important to understand the local property market and to have the property inspected for any potential issues. Another pitfall is not fully understanding the legal and financial implications of buying property in Malta. It's advisable to hire a lawyer and a financial advisor to guide you through the process.