Real Estate Advisory & Conveyancing

1. Are foreigners (EU and non-EU citizens) permitted to purchase property in Malta without restrictions?
Answer: In principle, yes; however, different legal frameworks apply depending on your nationality and the location of the property:

• Special Designated Areas (SDAs): In these government-designated prime developments (e.g., Portomaso, Tigné Point, SmartCity), both EU and non-EU citizens can acquire an unlimited number of properties without regulatory restrictions and lease them out without limitations.

• Except SDAs: EU citizens who have lived in Malta for at least five years can purchase immovable property freely. Those who have resided in Malta for less than five years (as well as non-EU nationals) require an official government permit for the acquisition of a residence outside an SDA—the so-called AIP-Permits (Acquisition of Immovable Property Permit) permit. In addition, minimum purchase price thresholds and rental restrictions apply here.

2. What is a "Konvenju" (Promise of Sale) and why is it so crucial?
Answer: The Convenju is the preliminary agreement (Promise of Sale) under Maltese property law. Upon signing, both buyer and seller enter into a legally binding commitment to subsequently execute the final deed of sale (Public Deed). The preliminary agreement typically has a validity period of 3 to 6 months.

All essential terms and conditions are stipulated within the preliminary agreement: the purchase price, the deposit (typically 10%), the period of validity, as well as all suspensive conditions (e.g., the successful granting of an AIP permit, confirmation of bank financing, or clear results from the notary's title search).

3. What role does the notary play in Malta, and why do I also need a lawyer?
Answer: Unlike in Germany or Austria, the notary in Malta traditionally acts on behalf of the buyer, and is simultaneously a public officer responsible for the collection of government taxes and the official registration in the Public Registry (Public Registry / Land Registry).

Because the notary primarily verifies the formal legality of the transaction, engaging an independent legal advisor is strongly recommended for more complex acquisitions or corporate restructuring: additional legal counsel. Our firm examines the preliminary agreement for hidden clauses, ensures that the deposit is held in a protected escrow account, and represents your interests should title encumbrances or structural defects give rise to a right of rescission.

4. What ancillary costs (closing costs) arise when purchasing property in Malta?
Answer: As a buyer, you should generally expect ancillary purchasing costs of approximately 6% to 7% of the purchase price . These break down as follows:

• Stamp duty Generally 5% of the purchase price (often payable as 1% upon signing the preliminary agreement and the remaining 4% upon execution of the final deed). For first-time buyers or in designated Urban Conservation Zones (UCAs) government incentives and relief schemes apply.

• Notary fees: Approximately 1% to 1.5% of the purchase price, plus disbursements and out-of-pocket expenses for title and registry searches.

• AIP permit & legal fees: Fixed government application fees (approx. €233), along with the agreed legal fees for title examination, contract drafting, and escrow services.

• Please note: Estate agency fees in Malta are typically paid by the Seller .

5. Can I use the property acquisition to obtain residency status in Malta?
Answer: Yes, purchasing or renting a residential property forms a cornerstone of nearly all Maltese residency and special tax programs:

• Malta Permanent Residence Programs (MPR/MPRP): Requires non-EU nationals to purchase qualifying real estate (minimum value between €300,000 and €350,000, depending on the region) or enter into a long-term lease.

• Global Residence Programs (GRP) / Nomad Visa: Likewise require proof of a qualifying residential address on the island.

We coordinate the property selection in advance to align precisely with the qualification criteria of your intended residency program, preventing delays when applying for your eResidence card (eID card).

6. How does the legal title search (title check) proceed prior to the Final Deed?
Answer: Between the signing of the preliminary agreement and the final deed, the notary conducts the so-called Search of Title examination of title. During this process, the property's history is traced back seamlessly through the public registry over several decades. The examination verifies:

• Whether the seller is the sole lawful owner and has unfettered power of disposal.

• Whether the property is free and clear of mortgages, debts, easements (servitudes), or third-party encumbrances and liens.

• Whether all required planning permits (Planning Authority permits) have been issued for the property (including compliance certificates)and that Planning Authority Permitsare in place.

Only once these clearance confirmations are in hand will the notary, in consultation with our firm, release the remaining funds. We accompany you through the final execution of the deed of sale.