There are restrictions for foreigners buying real estate in Malta as to safeguard a good housing stock for the local population. These restrictions apply only if you don’t become a full time resident. To be considered a full time resident one has to pay local income tax at a favourable final rate of 15%. If you do not become a full time resident, an ‘Acquisition of Immovable Property Permit’ (AIP permit) would be required by Malta’s Ministry of Finance, and only one property can be bought.
An AIP permit is usually granted within 6 to 7 weeks. It is granted for immovable property where the value is not less than €104,509 in the case of apartments and maisonettes and €174,133 in the case of houses. The property purchased must also be solely used as a residence only for the applicant and his/her family (and rented out only according to set criteria).
A property can be purchased below these thresholds if it is being bought in shell or unconverted and an architect’s certificate indicates that the property requires additional costs which bring it to the level of the threshold to make it habitable.
Documents required for an AIP application include:
A copy of the signed preliminary agreement;
Photocopy of passport;
Two passport sized photos.
The administrative charge for an AIP permit is €232.94
The AIP application procedure is taken care of by the notary.