Malta is a splendid island country; colorful, lively, and vibrant. It’s one of the three islands in the archipelago located in the Mediterranean Sea, the other two being Gozo and Comino. Perfect weather all year round, post-card perfect beaches, sunshine, welcoming locals, and exquisite architecture are novel worthy, parts of a beautiful dream.
Fortunately, foreigners can own property on this island, including Indian nationals. Areas that have been designated for sale by the estate can be bought and sold by Indians under the “Acquisition of Immovable Properties (AIP)” permit. However, to acquire any type of developed property or a piece of land, foreign buyers have to follow a rigorous procedure.
Buying property as a non-resident
Malta has some of the most favorable and popular residence programs in Europe; offering tax relaxations, the right to buy and own property, and numerous other benefits. However, if an Indian citizen is not a resident or citizen of Malta, he/she can still acquire property in the country.
The only limitation for ‘Third Country National (TCN)’ is that they are restricted to buy a property that is located within the ‘Special Designated Areas (SDAs)’. To be able to buy property outside the SDA, the buyer has to first obtain AIP.
Obtaining AIP permits
As stated earlier, TCN will require an AIP to purchase property beyond the SDA. Even with an AIP, an Indian national will be limited to acquiring only one residential property after ascertaining the authorities that the acquired property will be used solely for personal residence. This limitation, however, does not apply to the properties confined within SDAs.
Depending on the value of the property, a general fee of EUR 23,300 is payable by the buyer. The process involves scrutiny, verification, and approval from the concerned authorities, and generally, the AIP takes 35 working for issuance.
Update legislation and policy
Over the years Malta has refined its policies regarding the acquisition of property by TCNs. Foreign buyers have to contact the Capital Transfer Department (CTD), a section of AIP, for application and processing.
Secondly, under the Malta Residence and Visa Program, TCNs who have spent 5 years continuously in Malta are eligible to apply for long-term permanent residency status. The status is permanent and valid for 5 years; entitling the bearer to buy property outside SDA without AIP. Not only that, but the bearer also enjoys full benefits of tax reductions, exemptions, and stamp duties similar to a Maltese citizen
Special Designated Areas (SDAs)
SDAs also called the Lifestyle Developments, are locations assigned to be developed as luxury properties offering exclusive services and amenities, such as reception areas, covered car parking, swimming pool, etc. The benefits of buying a property in Special Designated Areas are not limited to just the services; TCNs owning property within SDA are entitled to almost the same rights as any Maltese national.
Indian expatriates who own property in Malta are exempted from limitations as to the number of properties owned and the requirement as well to obtain AIP for buying property in non-designated parts.
List of SDAs in Malta
The below list is comprised of the SDAs that are most popular among expats and Indian nationals:
- Portomaso – St. Julian’s
- Portomaso – The Laguna, St. Julian’s
- Tigne point – Sliema
- Fort Cambridge Zone – St. Julian’s
- Tas-Sellum Residence – Mellieha
- Smart City – Kalkara
- Forth Chambray – Gozo
- Kempinski Residence – San Lawrenz
Property & Tax Residency
The good news for Indian High Net-worth Individuals (HNIs), is that over the years, the Maltese government has introduced various programs designed and aimed specifically for HNIs. Each program offers different benefits, luxuries, and exemptions to HNIs who indulge in trading in the real estate sector of the country.
Some of the most prominent programs for HNIs are tabulated below along with the requirements for each one of them:
| S.No | Minimum investment (EUROS) | Area | |
| 1. | Residence and visa program | 270,000 | South or Gozo Island |
| 2. | Global residence program | 220,000 | South or Gozo Island |
| 3. | Individual investor program | 275,000 | South or Gozo Island |
| 4. | Ordinary residence program | 350,000 | Anywhere |
