Apart from the agreed price of the property, prospective buyers in Malta have to make up for the following costs:
A notary public appointed by the buyer conducts all the necessary research and handles the, sales agreements, Notarial fees normally range from 1.5% to 2.5% of the property price. These are paid in two instalment: 33% on the 'Promiseof Sale' and 67% with the publication of the final deed. The cost of notarial fees can be calculated on the following website:
The standard stamp duty rate in Malta is 3.5% of the total purchase price on the first €150,000 and 5% on the remaining value. Typically, during the ‘promise of sale’ 20%of the total stamp duty is handed to the notary public, and the remaining balance is settled on signing the final purchase contract.
Non-EU citizens are obliged to pay 5%Stamp Duty on the agreed price of the property. On the other hand, EU nationals who are taking up the permanent residency programme in Malta and have sold their overseas property and planning to purchase their primary residence in Malta pay the standard 3.5% rate on the first €150,000.
Important note: As from 2014, the government launched the ‘First-Time-Buyer’ scheme with the aim of helping out first time buyers to acquire their first property. Under this scheme, new property owners are exempt from stamp duty on the first €150,000 euros.
In certain cases the buyer of a property in Malta might have to pay a recognition fee often referred as a ground rent. There are three types of ground rents –perpetual, temporary and revisable. A perpetual ground rent is everlasting with the option of redemption. On the other hand, a temporary ground rent runs for a specific period of time and once this expires full ownership of the property is passed on to the successor in title. Lastly, as the word implies, a revisable ground rent can increase from time to time and conditions are subject to change as per contract.
Engel & Völkers Sara Grech, Triq in-NegozjuBKR 3000 MriehelMalta
Phone +356 2347 0000