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With new European destinations such as Bulgaria, Slovenia and Croatia offering two and three bedroom apartments for sale for US $80,000, there was concern last year among some Malta estate agents that 2005 could see a drop in the number of  international Irish buyers choosing to buy a holiday home on the Mediterranean island. With good all year round temperatures enticing many buyers for the winter months as well as the summer and a warm welcome from the local population who nearly all speak English, Malta has been popular for some years among overseas property buyers.  ‘A home from home in the Med is often the comment we hear from overseas property buyers’ comments Michael Johnson of Malta property specialists Tribune Properties. ‘With countries such as Bulgaria, Croatia and Slovenia opening up their property markets to overseas buyers there is a chance that the Maltese property market could see a decline in sales this year.

Risk Factor

Malta joined the EU last year, and this has helped maintain Malta’s popularity among overseas property buyers.
‘Malta has economic, legal and political systems that are established, and might be viewed as less of a risk than countries where title deeds might be more questionable’, adds Johnson, ‘And we advise buyers wherever they ultimately decide upon to appoint an independent lawyer who can converse in the buyer’s own language to oversee any property transaction to help avoid any potentially expensive misunderstandings’. 

Malta recognizes three levels of residency:

Non-Residents - Persons who visit Malta as tourists whose stay does not exceed 3 months. They are not subject to local tax conditions. Property purchased must exceed MTL 30000 for apartments and MTL 50000 for houses in value. Such persons may only be held liable to tax if they have any income arising in Malta, excluding bank interest.

Temporary Residents - Persons who stay for a period exceeding 3 months and who are required to show proof that their income will enable them to live in Malta without becoming a financial burden on the government. Once this requirement is met, a permit may be obtained from the Principal Immigration Officer. Temporary residents are subject to local tax conditions only if their stay exceeds 6 months in a calendar year.
They are subject to tax on remittance from income arising abroad and on any income arising in Malta.

Permanent Residents - Persons who hold a residence permit entitling them to remain in Malta with freedom to come and go as they please. This permit is obtained from the Secretary General (Expatriates and Nationality Division), Office of the Prime Minister, Auberge de Castille, Valletta, Malta. Information pertaining to this permit may also be obtained from the Ministry of Finance, Floriana.
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St John's Source:European Commission

The procedure for completing a property purchase is simple. On finding the right property and agreeing on a price, buyer and seller sign a preliminary agreement binding the vendor to sell and the purchaser to acquire the property on terms and conditions agreed upon and subject to good title and the issue of all relative permits. A 10% deposit is usually lodged with your Legal Adviser, Notary or Estate Agent on signing of this agreement. Such agreements are written out in English. This preliminary agreement is usually valid for 3 months during which time a Notary Public undertakes researches to prove good title and submits applications to the relative Government departments. The final contract is then entered into by the parties or their legal representatives when the full price is normally paid and vacant possession is given by the vendor on contract.

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Non-Maltese residents may purchase one property in Malta for a holiday home or permanent residence. The main conditions which apply for purchase are:

• The purchase price of the property must not be less than MTL50,000.
• The funds for the purchase must emanate from outside Malta.
• The property (unless one buys a property with a private swimming pool, and is then allowed to rent it out), may only be used as a holiday or permanent residence by the purchaser or immediate his family.
• On resale of the property, a non-resident may repatriate the funds.

Mortgages Info & other Bank related Information :

Local Banks on the Maltese Islands offer very attractive Home Loan Facilities to suit individual needs to local as well as to foreign prospective purchasers. Among these are HSBC, Bank of Valletta plc, and APS Bank Ltd.  More information can be received from Tribune Properties at http://www.maltaproperty.info.
Home loan facilities generally offer the following terms and conditions:

• Up to 90% of purchase price or completion costs 
• Preferential interest rates especially for the first years and for high value loans
• Monthly repayments up to 25% of the gross income
• Flexible loan repayment terms of up to 40 years
• No processing fees, legal or early repayment fees 

Geographical Location & Time Zone

The Maltese Archipelago lies virtually at the centre of the Mediterranean, with Malta 93kms south of Sicily and 288kms north of Africa. Gibraltar is 1,826kms to the West and Tel Aviv is 1,940kms to the East. 

Malta follows Central European Time (CET) which is one hour ahead of Greenwich Mean Time (GMT), and six hours ahead of North American Eastern Standard Time (EST). 
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Getting There By Air: It takes about two or three hours to get to Malta by air from most European cities. There are frequent and direct flights to Malta from the major European cities including London, Rome, Paris, Frankfurt, Brussels, Geneva, Athens, Amsterdam, Madrid and Vienna among others. There are also other regular flights from other destinations in Europe as well as from North Africa and the Middle East. The scheduled flights to Malta are operated by: Air Malta, Swissair, Austrian Airlines, Lufthansa, Transavia, Egyptair, Balkan Airlines, Aeroflot, British Airways, Tuninter, Corsair, Condorflug and LTU/LTU Sud.

Passport & Visa Regulations

Entry visas are not required - for stays of up to three months for holidays or unpaid trips - by nationals of the European Community. Nationals of countries, which require a visa to enter Malta, should obtain this from Maltese Embassy or Consulate. Where neither is available, a written request should be made to the Commissioner of Police, Police Headquarters, Floriana. Fax: +356 2124 7777 and/or +356 21235308
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