Malta offers a variety of extremely high-end and luxurious properties that have maintained their value throughout the 2008/2009 financial turmoil. The properties like villas and houses of character as well as luxurious apartments have proved to be a reliable and stable investment for investors who want to make a substantial returns on investments. Based on the Central Bank, the advertised prices for properties have returned to positive territory since March. Statistics showed that during the first quarter of this year, the prices rose by 4.5 percent contrasted to the same period a year ago.
It is the Acquisition of Immovable Property Permit (AIP)
All citizens of EU member states who have lived for a period of time in Malta continuously for a minimum of five years in any period prior to the date of acquisition can acquire immovable property without needing to obtain the AIP Permit. However citizens from every EU member states who haven’t resided for a period of five years in Malta at least for a of five years, can acquire their primary residence, or any other immovable property needed for their business operations or the provision of services, while those who haven’t been for a period of five years in Malta during a that is five years need to obtain an AIP permit to purchase immovable property to be used for secondary reasons of residence. People who aren’t citizens of the EU state are not able to buy any property of immovable value without permission under Chapter 246 of the Laws of Malta.
Procedure for purchasing properties in Malta:
Choose a property to purchase and reach an agreement on pricing with seller.
We draft and discuss an Preliminary Agreement of sale that is suitable for both parties.
The Preliminary Agreement is signed in your office (or in your absence one of our lawyers on your behalf through a the power of attorney) and the seller.
It’s usually for 3 months, however the duration of a shorter or longer period may be agreed upon.
Usually, a deposit of 10 percent of the purchase price is paid to us prior to the signing of this contract. This is refunded to the seller, in the event that the sale is not concluded by you, without legal grounds.
The contract is binding on the parties to maintain their commitment to the purchase subject to a list of conditions and processes being followed prior to the contract expires.
Signature of an official Deed of Sale and passing of the keys to new owners of the property.
We are able to offer a complete service to assist with the writing, review, and negotiation of preliminary agreements that are proposed by sellers. Our role throughout the term of three months of the Preliminary Agreement consists of:
Conducting the required legal searches and trace the title of the seller to the property, to ensure that the property is legally owned to him and is not impacted by any obligations (hypothecs or privileges.) that could be affecting the property.
An architect should be instructed to determine whether all necessary permits for planning are in place. Also, make sure the property is not in use to allow you to immediately take possession.
The application process for the AIP permit (the Government authorization needed for non-residents seeking to buy the property they want in Malta. The process takes between 1-3 months.
Drafting the Maltese will that governs your home in Malta.
To provide our customers with an unbeatable service, we’ve developed relations with property sales professionals that provide the same high level of customer service and commitment that our clients have come to receiving from us. They’ll take you to your hotel and take around on different property viewings, maybe during weekends if your time is short.
The average fee charged to buyers and sellers by private agents for their services is equal to one percent per. The brokerage commission charged from local agents for real estate is included in the cost and is paid by the seller alone.
The purchase of property in Designated Areas
There are however designated areas in Mata which are known by the name of Special Designated Areas (SDAs) in which there are no acquisition restrictions. There is no limitation to inheritance acquisition and there are a number of other exemptions. Different rules apply to acquisition of bodies of individuals.
There are many SDAs all over Malta in addition to Gozo. This includes Madliena village located in Madliena located in the landscape with views of the sea; San Lawrenz, Kempinski development in Gozo and Fort Cambridge in Sliema. A typical two-bedroom house in one of the sought-after areas in Sliema and St. Julians, near the beach and close to everything, can be priced between EUR 150,000 up to EUR 200 000, based on the standard of finishing and the area. Apartments in SDAs are also generally priced between EUR 180,000 for the most basic ones, up to EUR 400 000 or more for luxury villas.
Purchase of Property for sale in Malta Via Companies
It is becoming increasingly popular to purchase properties in Malta through the company. This is generally done for the purpose of using the profits that are retained inside an organization directly. It is not a distribution from the corporation to shareholders who are personal which means there is no further dividend tax. It can also be used to protect assets.
The purchase of property through trusts
Property in Malta can also be purchased by way of the use of trusts. The establishment of trusts in Malta is controlled through the Trusts and Trustees Act 2004. Malta has established itself as a stable and reputable trust jurisdiction, founded on a current trust statute, proper authorization and regulation of trustees , and an established judicial system.
Trusts are increasingly being utilized for different amounts of assets protection as well as estate planning. Families from both countries aren’t afraid to let go of the glamor of owning a property directly to focus on a carefully planned family plan and expert property management delivered by a professional trust company, usually recommended by the trusted lawyer of the family.
It is quite common for properties for sale in Malta to be purchased through trust to be used by the newly-arrived Malta residents’ family and close friends, and then to be managed and maintained in the best interest of the beneficiaries in a way that maximizes the value of the property placed in trust. As property trustees who specialize can effectively manage a portfolio of real estate effectively by bringing together knowledge not only in trusts and financial management, but as well in property development, investment and management as well having extensive expertise in property deals in Malta.
Renting Property in Malta
The process of renting a property in Malta is an easy process. The rental agreement is executed in a matter of days after all aspects are agreed upon by the lessor and the lessee.
Property Management
Residents of Malta who don’t reside permanently on the island, there is the option of employing a property management service. It will typically take care of needs like settling rent collection, tax issues as well as insurance coverage key, utility bills, and inventory.
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