Non-residents of Malta may freely purchase property in Malta, subject to obtaining an AIP permit ( Acquisition of Immovable Property) if such permit is necessary. The permit is necessary if you are non-EU national.

AIP Exemptions for EU Citizens

AIP permits are not required in the case of EU citizens who

  • Have been resident in Malta for at least five continuous years at any time preceding the date of acquisition, may freely acquire more than one immovable property without the necessity of obtaining a permit.
  • Intend to purchase a property which is to serve as their primary residence; or
  • Who intend to purchase a property for investment purposes.
  • EU citizens, who have NOT resided in Malta for at least five years, but have the intention of purchasing their primary residence i.e. take up residence in Malta, do not require a permit. Nor do they require such a permit to purchase immovable property required for their business activities or supply of services.
  • Where one of the spouses is an EU citizen and the other spouse is a non-EU citizen, both can benefit from the exemption outlined above and acquire property without the necessity of obtaining an AIP permit, provided the acquisition is being made to serve as their primary residence.
  • Also exempted is the acquisition of immovable property by an EU national for the conduct of one’s business activity or for the supply of services by such person. In such a case, a declaration reflecting the purchaser’s intention for the acquisition should be inserted in the relative contract of purchase. This also applies when the purchaser intends to buy the property as a rental investment.

 

AIP Requirements for non-EU Nationals.

An AIP permit will not be required to purchase properties in Special Designated Areas (SDA) but any other property purchased on the island are subject to the following AIP conditions.

  • Individuals who are NOT citizens of a European Member State may acquire immovable property after they obtain the AIP permit in terms of Chapter 246 of the Laws of Malta from the Ministry of Finance or unless they acquire property located in a Special Designated Area.
  • Where the purchase requires an AIP permit, the property must satisfy a certain minimum value which changes periodically and which currently stands as follows: €144.000 for apartments and maisonettes and €248.000 for villas, townhouses and other property. These values are index-linked and thus may be subject to revision annually.
  • The property purchased has to be used solely as a residence by the applicant and his family and is not allowed to be rented out.
  • The above-mentioned individuals may only own one property in Malta and Gozo (except in SDA’s) where one may purchase more than one property.
  • Once these applicants have purchased a property in Malta and wish to acquire another one after having sold the first one, they may do so after obtaining permission from the Ministry of Finance. Applications for permission to acquire another property are normally favourably considered. Permission will be granted subject to the first property being sold.

 

Special Designated Areas

When purchasing a property in a Special Designation Area, no restrictions whatsoever apply. Foreigners (EU and non-EU) may purchase any number of units within such developments without the need for an AIP permit, hence such purchases are not governed by any of the above-mentioned conditions. Non-EU nationals are able to buy more than one property and are allowed to rent out.