Buying Property in Malta: A Guide for Local Buyers
Purchasing property in Malta can be a detailed and sometimes complex process, especially for first-time buyers. At Belair Property, we provide comprehensive guidance and support through each step of your real estate transaction to make it as smooth as possible.
Step 1: The Promise of Sale (Konvenju)
The Promise of Sale Agreement, also known locally as the Konvenju, is a crucial part of the buying process. This agreement is prepared and signed at a Notary of your choice. It includes all the terms and conditions agreed upon by both the buyer and the seller.
Upon signing, a deposit of 10% of the property’s sale price is usually required. This deposit is held by the Notary unless otherwise agreed by both parties.
Step 2: Legal and Property Checks
Once the Promise of Sale is signed, the Notary begins conducting property title searches and obtains all necessary documentation to ensure a clear title. During this period, it is also highly recommended to have an architect assess the property’s structural condition and verify that planning permits are in order. This step is important, as the Notary’s responsibility is limited to confirming the legal title, not the physical state or permits of the property.
Step 3: Applying for Bank Financing
If financing is needed, you should bring a copy of the Promise of Sale to your bank along with any additional documents required. We recommend discussing loan options with a bank before signing, as the Promise of Sale can include a clause stating that the sale is conditional on bank financing approval. Belair Property has established strong relationships with Malta’s leading banks, and we can help connect you with banking partners when needed.
Step 4: Final Deed and Closing the Sale
Once all documents, searches, and financing are in place, the final deed can be signed. At this stage, funds are exchanged and keys are handed over, completing the property purchase.
Buyer Expenses: Notary Fees, Stamp Duty, and More
- Notary Fees: Legal fees typically range from 1% to 2% of the sale price, depending on the extent of searches and services required. The following link provides detailed information on notarial fees in Malta.
- Stamp Duty: The stamp duty rate in Malta is generally 5% of the purchase price, though discounts are available based on specific circumstances:
- Standard Rate: 1% upon signing the Promise of Sale and 4% on the final deed.
- First-Time Buyers: No stamp duty on the first €200,000, and 5% on the remaining balance.
- Main Residence (For those who previously owned property): 3.5% on the first €200,000, and 5% on any amount exceeding this threshold.
- Second Homes or Investments: A flat 5% rate on the full purchase price.
Urban Conservation Area (UCA) Stamp Duty Exemption
For properties located in Urban Conservation Areas (UCAs), an exemption applies where no stamp duty is charged on the first €750,000 of the purchase price, and a 5% rate applies to any remaining balance. This incentive encourages buyers to invest in historical and heritage properties in Malta’s designated conservation areas.
