Property in Malta Malta

Property in Malta The First Steps to Buying

 

Arranging a mortgage to buy property on the island is a fairly straight forward process. Non residents or non Maltese citizens living on the island need to approach the Central Bank of Malta who will then require a banker's guarantee from the bank at home. They specify that the full amount required to cover the cost of the property must be transferred from abroad. A non resident is not charged any tax on a holiday home bought and they are free to borrow up to 80% of the value of the property from a local bank.

Many people looking to buy in Malta do so with rental in mind. With so many annual visitors to the island, there's lots of money to be made from owning a holiday let. The Maltese government have outlined a number of stipulations for the renting out of property in an attempt to maintain Malta's reputation of good properties. If you're buying property in Malta with rental in mind, its important to remember that you can only rent out a property worth in excess of Lm50,000 and which has a pool. Any property you want to rent out needs to be registered with Malta's Hotel and Catering Establishments Board, and any income made from renting will be taxed at 15%.

It's not uncommon for a non Maltese resident of Malta to look to buy an additional property to rent out to tourists. More than one property can be bought as long as it's in one of Malta's up market resorts such as Portomaso, Tigne and Cottonera. This supports Malta's desire to change its image from merely that of a package holiday destination to attract a higher class visitor.