Investing in real estate in Malta has been a good business for many people in recent years. Here is the great guide to the buying process of real estate in Malta. After reading this you will know almost everything to make the best purchase of your house or apartment in 2020.
A very special island –
Real estate in Malta is unique due to the size of the island. Land outside the cities is hardly ever constructible, creating very strong pressure on property prices on an island only 20 kilometers long and 15 kilometers wide. In Malta it is still possible to have a decent 3 room apartment, close to the sea, at affordable prices. But, why has the value of real estate increased? Could it be because of demand? The population of just over 400,000 in 2010 rose to 500,000 in 2020. One thing is certain: 25% more people are staying on an island where building areas can hardly extend. Malta is the European country with the strongest population increase in recent years.
Why Malta attracts those who want to invest abroad?
The island is far from being a tax haven as some think. On the other hand, it is favorable to certain types of activities and investments. Real estate is one of them and the Maltese are fond of it. There is no property and housing tax on the island. Expats are well received and 99% of locals speak English and Maltese, even Italian and sometimes even French.
If you have a European Passport you can buy your main residence immediately. For a second home you must request the “AIP” permit. If you are outside the European Union, you will need to apply for an “AIP” permit or buy in one of the programs allowing purchase without a permit. The “AIP” license costs 233 Euro and you will need a copy of the passport and the sales agreement as well as 2 identity photos.
How to make an offer and negotiate in Malta?
The Maltese agree to negotiate the price of their property. But beware – offers that are too low are refused directly. Also remember that they have no taxes on real estate and that the property increases in value. Some Maltese even change their mind when they get the asking price and decide to keep their property. Your negotiation will therefore have to take into account the price of the property, and especially if it is below or above the market price that you have seen on other properties. Finally adapt yourself, it is possible to make a more aggressive offer with a real estate agent than with an individual who is attached to his home and has developed an emotional value there.
Choose a notary and an architect –
When making your purchase it is imperative to have a good notary as well as a professional and organized architect, under penalty of turning a successful purchase into a real nightmare. At the level of notaries, some have an archaic way of working, and do not know how to send even an SMS or email to a third party, even if it could break your sale. Likewise, a long response time to important emails can turn a mild situation into a serious one for your purchase. A reliable person is vital. It is he who checks the validity of the title deeds, carries out the compromise, the final act, and registration with the Maltese state. A good architect is therefore a centerpiece when making your purchase. He can verify that your purchase is sound and point the finger at important issues for each property.
It is always advisable to consult with the best Maltese real estate company for a trouble free operation.