| Real Estate
In Malta |
| By Roger
Munns |
| Malta’s
Market Battle
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. |
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‘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. But it
hasn’t happened in the five months of
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2005 at least.
Malta has an appeal that never really attracted the bargain hunters in
the past who tended to look more at rural France and Spain where the low
cost airlines fly to, and it is these buyers who are now considering the
new markets rather than the buyers we see in Malta’. |
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| 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. |
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Offshore
Resources Gallery
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| 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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| 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.
Non-Maltese
residents may purchase one property in Malta for a holiday home or permanent
residence. The main conditions which apply for purchase are: |
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Offshore
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The purchase price
of the property must not be less than MTL50,000.
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The funds for
the purchase must emanate from outside Malta.
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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.
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On resale of the
property, a non-resident may repatriate the funds.
As you may expect
there are expenses payable on the completion of contract. You will
be charged 5% duty on documents. Legal fees are set at 1% and there
is a Ministry of Finance fee which will set you back MTL100
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:
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Up to 90% of purchase
price or completion costs
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Preferential interest
rates especially for the first years and for high value loans
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Monthly repayments
up to 25% of the gross income
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Flexible loan
repayment terms of up to 40 years
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No processing
fees, legal or early repayment fees
Banks usually
require the usual basic documentation for a loan enquiry including a recent
pay slip and FS3 and a photocopy of your ID card / Passport. You
will be asked to supply a copy of the preliminary agreement and an Architect's/Manager's
estimate of the property value. If you are not already an account
holder you will also need a character reference unless customer is already
an account holder.
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).
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.
By Sea:
A high-speed passenger-only catamaran operates a service from Licata, Catania
and Pozzallo to Malta. The service is operated daily between June and September,
decreasing to three times weekly between October and May. Approximate length
of journey is 3 hours to Catania and slightly less to Pozzallo. Malta
can also be reached by sea from Syracuse, Catania and Reggio Calabria three
times a week and a weekly crossing from Naples by Italian ferries.
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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Article
Index ~ Malta
Index ~ |
