Real estate in Malta: what to buy for residence permit

Malta is not only an island with a rich history and picturesque landscapes, but also a country that actively attracts foreign investors. Buying real estate in Malta can be not only a good investment, but also a way to obtain a residence permit. In this article we will consider the main aspects of buying real estate on the island, the conditions for obtaining a residence permit and give advice on choosing the right object.

Why Malta?

Malta occupies a special place on the map of Europe due to its favorable location, stable economy and membership in the European Union. The island attracts foreign buyers with its tax benefits, safe environment and the possibility of legal residence in one of the sunniest countries in Europe.

Malta is particularly interesting for those seeking residence permits through investment. The successful combination of a high standard of living, access to European markets and ease of doing business makes this country an ideal choice for investors.

Malta residence permit when buying real estate

To obtain a residence permit in Malta through investment in real estate there is a special program - Malta Permanent Residence Program (MPRP). This program gives foreign investors and their families the opportunity to reside in the country.

The basic requirements are:

Real estate investment:

• When purchasing real estate, the minimum amount is €300,000 in the southern regions and Gozo, or €350,000 in other areas of Malta.
• If an investor chooses to rent a property, the minimum annual rental value must be €10,000 in the southern regions and €12,000 in the rest of the country.

One-time contribution to the state:

The investor must pay an administrative fee of €68,000 (if buying) or €98,000 (if renting).

Donation to local organizations:

A further €2,000 must be donated to support local charities.

Proof of financial solvency:

To participate in the program, you must show that your capital exceeds €500,000, of which €150,000 is in liquid form (e.g. in bank accounts).

These conditions make the program accessible to wealthy investors who are willing to invest heavily in the Maltese economy.

Which property in Malta is suitable for a residence permit?

Malta offers a wide range of properties, from modern apartments in the cities to villas and traditional houses in the countryside. When choosing a property, it is important to consider both personal preferences and compliance with the requirements of the program. Property prices in Malta are quite high and depend a lot on the region.

1. Apartments in central areas:
   Central areas such as Sliema, St. Julians and Valletta are popular with foreign investors. There is a concentration of modern infrastructure, prestigious residential complexes and easy access to business centers. Apartments in these areas are not only a comfortable place to live, but also a liquid asset.
2. Real estate on the island of Gozo:
   Gozo is the second largest island in the Maltese archipelago. Real estate prices here are lower and the atmosphere is more relaxed. This option is suitable for those who are looking for peace and privacy.
3. Villas and townhouses:
   For those who prefer space and privacy, villas or traditional Maltese houses are the ideal choice. These properties are often located in quiet neighborhoods and have a unique architectural style.
4. Investment properties:
   Some investors consider buying real estate with the intention of renting it out. This is a lucrative option given the high demand for rentals from tourists and expats.

What to look for when buying?

1. Legal support:
   It is important for foreign buyers to have a professional lawyer to help with the transaction and document verification.
2. Location:
   The neighborhood in which the object is located plays an important role. Central areas guarantee high liquidity, while rural areas are suitable for a secluded life.
3. Condition of the property:
   If you are planning to rent out the property, it is important to choose properties with good infrastructure and modern finishes.
4. Additional Expenses:
   In addition to the cost of the object, you need to consider additional expenses: purchase tax (Stamp Duty) is 5% of the value of the property, as well as the services of a lawyer and agent.
5. Price growth prospects:
   Malta is a country with a growing real estate market. In recent years, the price of housing has steadily increased, which makes buying property on the island attractive from the point of view of investment.

Advantages of buying real estate in Malta

1. Easy access to European markets:
   Holders of a residence permit in Malta are able to travel freely throughout the Schengen countries.
2. Low taxes:
   Malta offers a favorable tax system for property owners and foreign investors.
3. Stable real estate market:
   Housing prices in Malta have a steady upward trend, which guarantees security of investment.
4. Excellent climate and high standard of living:
   Living in Malta means a warm Mediterranean climate, quality medicine and education, and a low crime rate.
5. Access to residency and citizenship programs:
   Buying real estate can be the first step towards Maltese citizenship.

Conclusion

Real estate in Malta is an investment that brings not only financial benefits but also opens the door to high standards of living and EU residency opportunities. It is important to choose the object carefully, to take into account all legal and financial nuances, as well as to involve professionals to support the transaction.

Malta remains one of the most attractive countries for investors due to its unique combination of economic stability, comfortable climate and favorable conditions for obtaining a residence permit. If you are thinking about buying real estate abroad, Malta deserves your attention.