Can South African Nationals Purchase a Property in Malta?
South African nationals have been awarded citizenship via investments without prejudice in Malta so long as the purchase process is followed diligently, as laid out below.
08/10/2020
Malta's 300 days of sunshine, over 8000 years worth of recorded history, and charming landscape are the usual reasons for millions of tourists to visit the country. But for many affluent and business-minded foreigners, there's more to the Maltese archipelago than its travel attractions.
Over the years, thousands of ex-pats have been so upbeat about the process of purchasing a property in Malta to tap the country's booming economy. Based on a 2019 report from Business Insider, high-income South Africans are investing R10.6 million in Malta as a way to gain residency and citizenship in the EU region. And the Maltese government has been open to this immigration development. Yes, South African nationals have fairly limited emigration choices. But they've been awarded citizenship via investments without prejudice in Malta so long as the purchase process is followed diligently.
Permits and Requirements
Malta's new Residence and Visa Program, which was launched in 2016, have attracted most of the recent residency via investment applications. And this is due to a lot of reasons, the best of which is that the residency can be granted in as fast as 3 to 4 months. Applicants just need to submit and process the following requirements:
• Government Bonds – Applicants need to hold an investment of €250,000 for government bonds. This will then be returned after 5 years.
• Government Fees – Main applicants need to pay €30,000 for government contribution, which includes a non-refundable payment of €5,500 for the due diligence fee.
• Acquiring Immovable Property (AIP) Permit – This permit is given only for residential property buyers. And there's also a required minimum property value to be bought, which could depend on the location. The minimum value for properties to buy in the South and Gozo is €270,000. And the minimum purchase price for estates in Northern and Central Malta is €320,000.
Yes, many ex-pats are in the process of purchasing a property in Malta with the thought of renting out the place in the future. But as per government guidelines, the residence must be held and can't be rented out for 5 years.
Process of Buying a Property in Malta and How to Make It Fast and Easy
Moving to a new place can be quite unnerving in itself. How much more if you're about to live in a totally different country. If you've considered buying a property anywhere in the Maltese archipelago, these tips will help you make the transition faster and easier:
• Visit the country for vacation first. This helps you familiarise the place and choose an apt property to buy. If you love to enjoy the country's vibrant city life, you might like to pick a residence in St. Julian's, Gzira, or Sliema. Or if you're into countryside views, activities, and lifestyle, you can live in Gozo, Zebbug, or Rabat. But if you want to explore the country's rich traditions and culture, properties at Mdina and Valletta might be the perfect fit.
• Create a list of property features you like to have. Your list should include your preferred square footage, location, neighbourhood, accessibility, number of rooms, budget, proximity to the neighbours, and outdoor space. That way, you can filter your options. There's a wealth of property types to choose from. And you would want to look beyond the property design and consider other factors, such as potential income and accessibility.
• Connect with reliable property agents. Agents can guide you on the best neighbourhoods, budgets, permits to process, taxation, and other real estate regulations in Malta.
• Once a property is chosen and the offer has been made, contact and work closely with a notary public. The notary will draw the purchase agreement, which you will then sign with the seller.
• Upon signing the contract, the buyer will pay 10% of the property's selling cost as a deposit. Also, 1% of the price needs to be surrendered to the notary for agreement registration. The purchase agreement has a validity of 3 months. And during this time, the notary will carry out the due diligence process to establish the ownership authenticity.
Residing in Malta might be what you need to enjoy the country's opportunities for travel, education, and business. Plus, you get to enjoy up to 90 days of the allocated 180 days stay in any country in the Schengen region.
Property Options and Cost
Malta's property market is one of the most attractive and lucrative in the world. This is due to the country's high ratings in business, tourism, and education. If you're in the process of purchasing a property in Malta, below are the options you have and their corresponding average cost:
• Maisonettes – €200,000 (1 bedroom) to €500,000 (4 bedrooms)
• Apartments – €279,000 (1 bedroom) to €774,000 (4 bedrooms)
• Houses of Character– €353,000 (1 bedroom) to €1,100,000 (4 bedrooms)
• Farmhouses – €1,600,000 (1 bedroom) to €1,800,000 (4 bedrooms)
• Villas – €1,500,000 (1 bedroom) to €2,700,000 (4 bedrooms)
• Bungalows – €1,800,000 (1 bedroom) to €2,800,000 (4 bedrooms)
• Townhouses – €370,000 (1 bedroom) to €1,100,000 (4 bedrooms)
Aside from the asking price of properties, the following are the other fees you need to take note:
• Notary Fee – 0.40% to 1% of the property's cost
• Stamp Duty – 5% of the estate's cost
• Registration Fee – €9-€47
• AIP – €233
• Professional fees for the lawyer, accountant, and auditor
Conclusion
Like many other nationalities around the world, South Africans can call Malta their second home. And in as fast as 3 to 4 months, they can start to enjoy Malta's sceneries, do business, or study.