Purchasing Procedures

The Purchase of one’s home demands an important decisions in one’s lifetime! Therefore, knowing your rights and limitations is of utmost importance.
The following should be taken into consideration:

  • The BUDGET available together with the FINANCE possible
  • The TYPE of PROPERTY desired whether it will be a House, Character Property, Apartment/Penthouse, Villa etc
  • LOCALITY preference
  • Size, Style – Modern, Classic or any other requirements
  • Services, Transport, Amenities, Schools, etc.

All such information will assist our consultants to tailor make a list of properties to suit your requirements and organize the relative appointments for the viewing the properties.
Our consultants will guide you through all the necessary procedures and will keep you informed accordingly.

Once the right property has been found, one would need to clarify the following:-

  • Purchase Price – specifying what it will include
  • Type of Ground rent if any - unless it’s Freehold
  • Extras included in the price (fittings, furnishings etc.)
  • List of works to be completed by the owner when a property is being sold ‘On Plan’ or in ‘Shell/Advanced Shell’ form
  • Terms for preliminary agreement. (Conditions, Payments, duration of final contract, etc.) When all the above has been clarified, a Notary Public is appointed by the purchaser and a date for the preliminary agreement is set.
  • The preliminary agreement is normally for a period between 3 to 6 months – sometimes even longer - during which period the Notary Public carries out searches to ascertain the validity of the title, assuring that there are no outstanding debts, hypothecs or any other liens on the property.

Duty on document or transfer tax is 5% of the value of the property -1% is payable on preliminary agreement and the balance of 4% on final deed of transfer. The Notary will register the said agreement with the Commissioner of Inland Revenue and pay the 1% Stamps Duty to the Public Registry within 3 weeks of Preliminary Agreement. Should for some reason the preliminary agreement is rescinded then the initial payment of 1% is refundable. (No stamp duty is paid on the movable property i.e. furniture and fittings).
A deposit of normally 10% of the purchase price as part payment of the agreed price is to be paid by purchaser. This is kept by the Estate Agency or Notary Public. Notary Fees can vary between 0.8% to 1.5% depending on researches required.

Both parties, namely the purchaser and the vendor, must ensure to honour the said agreement, particularly the time stipulated for the approval of the purchaser’s bank loan, the completion of works agreed upon to be carried out by the vendor and other such relevant conditions.

  • The purchasers would need to have the following during the promise of sale
  • ID Card (of both if a married couple)
  • 1% of the 5% of the Stamp duty tax of the agreed price.
  • 10% deposit (part payment of agreed price.)
  • The Vendor would need to produce the original copy of acquisition of the property in question, as well as clear identification.
  • For final contract when all conditions are met, all parties will meet at the Notaries office or if a bank loan is required, at the bank.
  • The contract is read out and if all is correct, the agreement is signed.
  • Transfer of funds is effected and full payment is settled.
  • The parties concerned will pay all outstanding payments concerning the purchase. Example: The vendor will any outstanding bills due to Banks, as well as Capital Gains tax which may be due on the property, estate agent’s fee as applicable, and any other bills like Water & Electricity, Telephone and of other services due on the property’s’ address. The purchaser will pay Stamp Duty, notaries fees, searches, AIP if applicable, etc.
  • Keys to the property and transfer of water & electricity meters, transfer of telephone lines (optional), are passed on to the purchaser when final contract is signed.
  • The notary public will register the contract at the public registry (and the land registry if applicable) and an authenticated copy of contract will be sent to all parties.



Non Residents


ADDITIONAL PROCEDURES FOR NON-RESIDENTS

  • Non residents, (being either E.U. citizens or otherwise) are entitled to purchase only one residential property in Malta or Gozo and this is normally subject to the acquiring of an Acquisition of Immovable Property Permit (A.I.P Permit) from the Ministry of Finance (chapter 246 of the Laws of Malta) which in most cases will be ssued within three months of application.
  • However, one may acquire any number of properties in Special Designated Areas such as Portomaso in St Julian’s, Tigne Point in Sliema & Manoel Island, Madliena Gardens, Cottonera Waterfront, Fort Chambray in Gozo and several others. These do not require any permit from the government to purchase even one will be buying such as a second home.
  • The purchase price must be at least Lm42,515/ €99,033 in the case of an apartment, masionette or penthouse and Lm 70,845 / € 165,024 in the case of any type of house, villa or bungalow.
  • In the case of E.U. citizens who will be taking up residence in Malta permanently, there is no minimum purchase value requirement. However, this only applies when one does not own another property within the E.U. and also if one has already resided permanently on the island for a period of five years. All E.U. citizens who have resided in Malta for a continuous period of 5 years may acquire a second property.
  • Citizens of all E.U. member states, including Maltese citizens, who have not resided continuously in Malta for a minimum period of five years, require an A.I.P permit under chapter 246 of the laws of Malta to acquire immovable property for secondary residence purposes i.e. holiday homes.

One would need to provide proof that funds for the purchase of the property have originated from abroad

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Maltese Residency – Tax and benefits


Tax and other benefits of Maltese Residency:

  • An unusually low tax rate
  • A flat rate of 15% is chargeable on all income (less personal allowances) received or remitted to Malta, from either local or foreign sources. This will be subject to a minimum payment of LM 1.800 per annum.
  • Overseas Capital funds invested locally are only taxed on any interest of dividends generated thereon, again at a 15% flat rate. Permanent residents also benefit from double taxation agreements existing between Malta, most European Countries, Canada, Australia and the USA, ensuring that TAX is never paid twice upon the same income.
  • Exemption from Customs Duty/VAT
  • E.U. citizens may freely bring to Malta household and personal effects, furniture and other domestic articles without any restrictions - apart from firearms and weapons of any kind within the 6 months of their arrival in Malta or from the date of residency permit - whichever is the later.
  • Non E.U. citizens must prove to customs that they shall be transferring their residence to Malta to be entitled for VAT/DUTY exemption.
  • Freedom of Movement - no visa requirements
  • There are no restrictions nor annual minimum stay requirements. A permanent resident may travel to and from Malta freely, without the need of applying for a visa nor need extensions to stay longer.
  • Repatriation of your capital and income
  • Proceeds from the sale of property, encashment of investments, local income and excess income brought to Malta may be freely repatriated by permanent residents, provided that any tax due has been settled.
  • Rental of Property
  • Since Malta’s accession to EU all property owners since that date are allowed to rent out their property whereas other non- EU Owners of properties with swimming pools or properties enjoying the use of swimming pools are allowed to rent these out - provided that all relative properties are licensed as holiday accommodation .
  • All income thereon is subject to tax.

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Importation of Personal Effects


  • E.U. citizens may freely bring to Malta any household or personal effects, furniture and other domestic articles without any restrictions - apart from firearms and weapons of any kind within 6 months of their arrival in Malta or from the date of residency permit whichever is the later.
  • Non E.U. citizens must prove to customs that they shall be transferring their residence to Malta to be VAT/DUTY exempt.
  • Cars are subject to registration tax which varies between 50.5% and 75% of the value of the car as ascertained by Maltese customs. Further details visit www.maltatransport.com/en/ltd/mototvehicles/registration/registrationtax

Through our associated companies we are in a position to help you with your airfreight ,sea-freight, all types of insurance and air ticket requirements.

For further details visit: www.cassar-cooper.com

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