Buying property in Malta as an expat can be daunting, so we’ve assembled a few tips we believe can take the edge off the task. Many people have sought the sun of Malta, and we’re here to help so you can purchase property in the Mediterranean sun with full confidence.
EU/Non-EU Law
The key thing to be aware of is that the rules for EU citizens and non-EU citizens are different when it comes to buying Maltese property.
For starters, EU citizens need an Acquisition of Immovable Property (AIP) permit to buy a second home, if you haven’t lived in Malta for five years. If this will be your primary home? No AIP necessary. Non-EU citizens need one for any purchase and have tighter restrictions.
Property type
Whether you’re looking for a modern luxury property or a more traditional, classically Maltese property is important to consider. The modern buildings are found in Special Designated Areas (SDA) and are flush with extras like pools. Older buildings are usually beyond the city and may have a greater need for upkeep.
It comes down to what you want to live in, and where. If you’d prefer luxury and a bustling community, it would be best to examine the SDAs. Towards the southeast of Malta, some properties can touch four centuries in age.
Property use
It’s imperative to consider how you will use the property, as you may need to be mindful of other factors should you wish to have the property as a source of income.
While a metropolitan location closer to the city would be ideal for summer rentals, it may be less than ideal for you as a second home. You may need to carefully consider if this is to be a home for you, or a source of income.
Limiting your exposure to currency volatility
With global and local inflationary pressures contributing to Malta’s rising property prices, and with recent movement in the GBP/EUR exchange rate proving particularly volatile, getting a good deal on your currency transfers is crucial if you plan to invest in Maltese real estate.
By moving your money with an FX specialist like Foremost Currency Group you’ll not only avoid any transfer fees but you are also likely to secure a more competitive exchange rate. You will also have access to a range of different services that allow you to limit your exposure to market volatility.
For instance, a forward contract allows you to fix an exchange rate in advance of making a transfer. While locking in a rate in this way would mean you'd miss out if the exchange rate strengthened, your future transfer would be protected from any negative market movements.
You could also set up a limit order to target a higher exchange rate, with you transfer being carried out automatically once your desired rate is struck.
To find out more about how you could save money and protect your currency transfers contact Jack Wiles at JSW@FCGWORLD.CO.UK, +44-1442 892 073 or +44-7720088962.
The information provided in this article is being provided solely for promotional and informational purposes and should not be construed as investment, tax or legal advice.