Special Designated Areas
Special Designated Areas are areas on the islands of Malta where the conditions for buying a property are the same for Maltese and/or foreign residents. Permit is granted for Special Designated Areas top-end facilities and amenities such as restaurants, supermarkets and marinas are included within the development.
Here is a list of Special Designated Areas:
No Permits Necessary:
These areas give non-Maltese purchasers the same rights as Maltese citizens, thus not requiring a permit from the Maltese government. Another interesting fact is that Special Designated Areas give EU nationals the possibility of buying a secondary home, typically a holiday home, in Malta without necessitating a permit.
Having been built specifically to cater for the needs of non-Maltese residents, these developments offer close entertainment areas, the amenities of a metropolitan centre and increased accessibility to facilities with all the comfort and security of a very exclusive community.
Buying a Holiday Home:
Special Designated Areas give EU nationals the possibility of buying a secondary home, typically a holiday home, in Malta without necessitating a permit.
This does not apply in the case of other properties in Malta, where EU citizens who have not resided in Malta for a minimum period of 5 years require a permit if the property being bought will not be used as the primary residence. In this context a distinction must be drawn between the terms “primary residence” and “first residence”,with the latter designating the first purchase whilst the former denotes a person’s main dwelling. Since a person can only have one primary residence at a given time, unless the purchaser will effectively live on a permanent basis in the place being bought, the property is not considered as a primary residence but a secondary one, in which case, an AIP permit is required.
Reflecting the diverse nature of Malta's property market which offers different types of properties, ranging from single-bed room apartments to large villas, properties in Special Designated Areas is varies giving prospective purchasers an array of options. Whilst the choice varies from one area to another, most areas typically have 1/2/3 bedroom apartments, penthouses, family unitys as well as villas.
Leasing your Property when Away:
When acquiring a property through an AIP permit, restrictions on leasing of the property apply. Since such permits is granted for personal residential use, then it follows that the property may not be leased out. This is not the case with Special Designated Areas and thus, purchases of such properties may opt to lease out their property in Malta, thus enjoy the capital growth and rental yields that these prime areas offer.