Buying property in Malta can be a smart investment and a beautiful lifestyle choice. But doing it as a foreigner? That’s a whole different process. If you’re ready to stop searching and start acting, then you need clear answers. This guide covers every critical step, from eligibility to getting the keys in your hand.
Key Highlights
- Learn which areas in Malta are available for foreign buyers and which ones aren’t.
- Understand how to apply for an AIP permit and what documents you’ll need.
- Discover how much money you need upfront and what additional costs to expect.
- Get to know how real estate agencies in Malta operate and what to watch out for.
- Read tips on negotiating your final price with confidence.
Who Can Buy Property in Malta?
Foreign nationals can buy property in Malta, but there are rules. Citizens of EU and non-EU countries are treated differently. If you’re not Maltese, you’ll either need an AIP permit or qualify for exceptions.
Key Conditions:
- If you’re an EU citizen who has lived in Malta for over five years continuously, you can buy property without restrictions.
- If you’re buying your primary residence and are employed or self-employed in Malta, you’re also exempt from restrictions.
- All other cases require an AIP (Acquisition of Immovable Property) permit.
You can’t just buy any house on the island. Certain properties are restricted. That’s why knowing which zones fall under Special Designated Areas (SDAs) is vital.
These are government-approved investment zones where foreigners can buy with fewer restrictions. SDAs include popular spots like Tigné Point in Sliema, Fort Cambridge, and Portomaso in St. Julian’s.
How to Choose the Right Location
Malta is small, but the lifestyle varies depending on where you live. Want peace and space? Look toward the northern and central parts. Need nightlife and walkable cafés? Then Sliema or St. Julian’s might fit.
Buying in tourist-heavy zones often means higher prices but stronger rental potential. The south offers more traditional homes and quieter surroundings. Your choice should depend on whether you’re buying to live, rent, or hold for long-term capital gain.
If you feel overwhelmed by the location options, consider working with a real estate expert who understands both local nuances and foreign buyer requirements. Excel Homes Malta is a great choice. Their team offers free property valuation services and personalized advice without pressure.
The right agent is not just a middleman. They can negotiate on your behalf, show you properties that match your legal status, and save you serious stress.
Step 1: Start with the AIP Permit (If Needed)
Non-residents who want to buy property outside of SDAs must apply for the AIP permit. This step is not optional.
What You’ll Need:
- Passport copy
- Detailed property information
- Proof of financing or bank statements
- Application form and €233 fee (non-refundable)
Expect it to take up to 35 working days for approval. Without it, the purchase is legally invalid. You are only allowed to own one property unless it’s in an SDA or you start a licensed rental business.
Step 2: Set Your Budget and Prepare for Costs
Buying in Malta is not just about the asking price. You’ll also need to factor in legal fees, stamp duty, and agency fees.
Here’s a breakdown of typical costs:
| Cost Type | Average Range |
| Stamp Duty | 5% of the purchase price |
| Notary Fees | 1–2% of the purchase price |
| AIP Permit Fee | €233 (one-time) |
| Agency Fee | Usually paid by the seller (5% + VAT) |
| Architect Fee (optional) | €300–€500 |
Have at least 7–10% extra saved above the property price to cover all these costs. Keep your financing simple. Some banks offer home loans to foreigners, but not all. If you need a mortgage, get pre-approval early.
Step 3: Secure a Promise of Sale (Konvenju)
Once you agree on a price with the seller, both sides sign the Konvenju, which is the promise of sale. This is a binding agreement. You must put down a 10% deposit to reserve the property.
Your notary will then:
- Carry out legal searches
- Confirm title ownership
- Apply for AIP if necessary
- Set a final contract date (usually within 3 months)
From this point, it becomes hard to back out without losing your deposit. Make sure everything checks out before signing.
Step 4: Close the Deal with the Final Deed
When all legal checks are done and you have financing ready, it’s time for the final deed. This signing usually happens in your notary’s office with the seller present. After signing:
- You pay the remaining balance
- Keys are handed over
- Notary registers the sale with the Public Registry
Congratulations — the property is now legally yours.
Common Mistakes First-Time Buyers Make
Buying in Malta as a foreigner can be straightforward, but mistakes cost time and money. Avoid these:
- Skipping the notary: You need your own. Do not rely on the seller’s notary.
- Not checking SDA eligibility: Not all areas are open to foreign ownership.
- Underestimating costs: Taxes and legal fees add up quickly.
- Rushing into offers: Some sellers inflate prices when they hear “foreign buyer.”
- Assuming verbal deals are final: Only signed Konvenju protects you.
What Type of Property Can You Buy?
Foreigners are allowed to buy:
- Apartments
- Maisonettes
- Villas
- Penthouses
- Farmhouses (in some cases)
But if you’re buying outside SDAs and you’re not an EU citizen living in Malta long-term, then it’s strictly one property only. No holiday homes. No rental properties unless you get licensed as a landlord.
What Happens After You Buy?
Once you’ve secured the deed, you need to take care of:
- Utility registrations (water and electricity)
- ARMS account setup (to avoid tourist rates)
- Council tax and garbage collection payments
- Furniture or renovation plans (if needed)
You can move in immediately or rent it out — depending on your permit type and license. Some areas generate strong rental yields due to expat workers and students, so returns can be solid.
Final Thoughts
Malta offers a rare combination of European lifestyle, English-speaking locals, and investor-friendly laws. But buying your first property as a foreigner means more than just sending money and signing papers. You need guidance, legal support, and a good sense of where your rights begin and end.
Start early. Ask questions. Work with people who know the process inside out. Buying in Malta doesn’t have to be complicated — as long as you follow each step without skipping details.
