Malta real estate ownership has a number of restrictions especially for the foreigners. Currently the real estate market is on the rise, much like the international real estate market.
There are many restrictions for foreign nationals and even those that are EU citizens. The Malta real estate listings can be seen by the foreign national, but they are allowed only to buy a single property. Further more, there is special Malta real estate for sale that is meant for foreign occupancy only. In some designated areas such as Tigne Point, Portomaso, Cottonenra and others, there is specifically Maltese real estate for sale where foreigners are allowed to buy more than a single property.
The Maltese real estate properties that are purchased by the foreigners can also be given for Maltese rentals if it is valued over 2,33,000 euros and has a swimming pool in addition to being registered with Hotel and catering Establishments Board. Further the Maltese real estate properties that are owned by the foreign nationals can give for Maltese rentals for a short term lease purpose only.
The real estate in Malta is now slowly beginning the recovery and the prices have changed marginally. They Malta real estate for sale will now see a huge jump when the international real estate for sale improves. Even the Maltese rentals yields are very low and are currently hovering around 2.6% - 3.4%. In Malta real estate for sale properties, the smaller apartments that are used are more expensive at 3,000 Euros rather than the larger apartments that have an average selling price of 2,865 per square meter.
Another reason for the low rental yields is that the supply is more than the demand of the Malta real estate. The transaction costs for the real estate in Malta is around 6.8% to 25.8% of the value of the Maltese real estate for sale properties. Even the seller has to pay 5% commission to the agent along with 18% VAT. If the property is held by the seller for more than 5 years, then they would need to pay 12% capital gains Tax when they sell the property. In the property that is less than 5 years is sold, then progressive tax rates are applied.
The Maltese real estate for sale that is held by non residents must first be offered to Maltese or EU citizens and if a buyer isn’t found, and then only can it be sold to any other foreigner. Malta is located bang in the middle of the Mediterranean Sea and for a few years, it has been attracting tourists and investors for some years now. With sunny beaches throughout the year, it has also become a preferred holiday destination for many.
Taylor White is an international real estate investor and leads the charge at International Real Estate Listings the worldwide leader in Malta real estate for sale, Malta real estate exchanges, and Malta rentals . Malta real estate owners, agents, and developers are encouraged to create an account, upload an unlimited number of listings, write as much creative property details, include a You Tube property video, and it will be activated as a basic listing for 6 months, free.