Gozo - General legal information when renting or purchasing a property on Gozo & Malta. Purchasing procedures
A preliminary or "promise of sale" agreement is signed , binding the vendor to sell and the purchaser to acquire the property on terms and conditions agreed upon and subject to a good title and the issue of all relative permits. A 10% deposit is usually lodged with the Legal Advisor, Notary or Estate Agent as intermediary, on the signing of this agreement.
The preliminary agreement is usually valid for three months, or longer, if agreeable to both parties. During this period the Public Notary will undertake researches to prove good title as well as submit applications to the relative Government departments. Contracts are written in English. The parties enter into the final contract once researches have proved satisfactory and permits are obtained. The full price is paid and the vendor on contract gives vacant possession.
Conditions
• Foreign nationals are allowed to own only one residential property, with the exception of property sited in a "Specially Designated Area" where you can own an unlimited number of units.
• Documentary evidence must be provided to show that the funds for the purchase originate from outside Malta. Mortgage facilities can be made available in Malta provided certain conditions are met.
• The property purchased is to be used solely as a residence for the owner or for his immediate family and guests may be accommodated in the property when the owner or a member of his family is in residence.
• The property may not be rented out except for villas with the facility of a swimming pool, which may be considered.
• On resale of the property a non-resident may repatriate the full sale price including any profit.
Minimum value of property
There is no upper limit on the value you can spend to acquire a property, however there are some restrictions on the minimum values. If you are thinking of purchasing a flat, apartment or maisonette the minimum value is €92,546.01 and for a house or a villa the minimum value is €154,199.86. The minimum value for renting a property is Lm1400 per annum.
Expenses
The following are the main expenses payable on contract
Duty on documents - 5%
Notary Fees - approx 1%
Ministry of finance A.I.P. Permit €232.94
Repatriation of capital
Any unspent income in excess of the minimum requirements may be repatriated. Proceeds from the sale of the residents property and / or other investments in Malta may also be repatriated.
Double taxation
Double taxation agreements already exist with most European countries, USA, Canada and Australia.
Employment
No employment or engagement in business may be undertaken by residence permit holders.
Important Links to Government Department Web sites:
