Property Conveyance

The acquisition of immovable property in Malta is an attractive prospect not only because of the island’s charm and character which mainly entices many foreigners seeking residence elsewhere, but also as an investment opportunity.

Purchasing immovable property in Malta usually involves a two-tiered procedure: an initial promise of sale is drawn up followed by the final contract of property conveyance. The Maltese civil law system endorses the fundamental principles of certainty offered by Public Registry enrolments giving the purchaser acquiring immovable property in Malta an assurance that the transfer of title will be affected in the most secure manner.

The acquisition of immovable property by non-residents gives rise to some issues which need to be considered, most notably in view of the law governing the permits required for the acquisition by non-residents of immovable property. This legislation outlines the procedures that need to be followed in relation to the attainment of a permit for the acquisition of immovable property in certain circumstances. If an EU citizen has resided continuously in Malta for a minimum period of five years as defined in terms of law, no restriction remains on the ability to acquire immovable property. Moreover, there are certain Special Designated Areas which are listed as being areas wherein non-residents may freely acquire immovable property without any restrictions as pointed out above. EU citizens do not require a permit to acquire an immovable property whereby they will establish their sole, ordinary residence. In the case of acquisitions by corporate entities, there are also instances whereby the entity de quo is precluded from the requirement of obtaining a permit. Every particular case has to be considered on its own merits in order to determine the applicability of the above.

Property conveyance gives rise to tax implications related to taxation in Malta. The transferor is liable for the payment of Capital Gains’ tax or Property Transfers’ Tax whilst the purchaser has to pay Duty on Documents and Transfers Tax. There are instances which result in the abatement or even the exemption of the payable tax depending on the circumstances of the parties.

The firm is specialized in the conveyance of commercial and residential property, regularly assisting both Maltese and foreign clients alike in the purchase or lease of property. Assistance is habitually provided in all stages of the property conveyance, including, but not limited to, the negotiation, drafting and reviewing of the promise of sale agreement, the final deed of sale and taxation matters.

Property Conveyance, tax law and Malta funds make Malta the ideal location to invest and relocate.

Further information may be obtained from one of our leading experts by contacting us below:

Your Name (required)

Your Email (required)

Subject

Your Message

To help us fight spam, please enter the verification code below:
captcha