There is a sequence to buying property in Malta that differs from most European countries in one important respect: the notary is not just a formality. In Malta, the notary is the professional who carries the legal weight of the entire transaction — conducting title searches, drawing up contracts, applying for permits on your behalf, and certifying that what you are about to sign is what you believe it to be. Before you view a single apartment, the most useful thing you can do is understand the two-stage Maltese property purchase: the Konvenju (Promise of Sale) and the Kuntratt (final deed). And before any of that, you need to understand whether you need an AIP permit — because the answer to that question shapes everything else.
The AIP split in simple terms: Special Designated Areas (SDAs — luxury developments like Portomaso, Tigné Point) = no permit, no restrictions, buy as many as you like. Standard Malta property = AIP permit required (unless you are an EU citizen with 5+ years' Malta residency), one property limit, cannot rent it out. This is the most important single fact in Maltese property law for foreigners.
Step 1: Do You Need an AIP Permit?
The Acquisition of Immovable Property permit is required if you are: a non-EU/non-EEA national buying any property; an EU/EEA citizen who has not lived continuously in Malta for five years; or an EU citizen buying a second residential property. EU/EEA citizens with five or more continuous years of Malta residency can buy freely without any permit. EU first-time buyers intending to live in the property also do not need an AIP permit for their primary home.
The AIP permit fee is €233, non-refundable. Processing takes approximately 35 days from submission. You apply through your notary, who submits the form with your passport photos, a copy of the promise of sale, and supporting documents to the Capital Transfer Duty Department of the Commissioner for Revenue. Properties bought with an AIP permit have a minimum value threshold: currently approximately €174,000 for apartments and €300,000 for houses — verify current thresholds with your notary as they are periodically updated.
Step 2: The Konvenju (Promise of Sale)
Once you find a property you want to buy, the process begins with the Konvenju — a preliminary agreement, typically binding both parties and valid for three months (extendable). The buyer pays a deposit of 10–15% of the purchase price and 1% of the total as the first instalment of stamp duty. The Konvenju is typically conditional on AIP permit approval (if required) and bank financing (if applicable). If the sale falls through due to the buyer's decision, the deposit is forfeited. If it falls through because the AIP is not granted or the bank refuses finance, the deposit is returned. Read the conditional clauses carefully — they define your exit options.
Step 3: The Kuntratt (Final Deed)
Once the AIP permit is issued, title searches are complete, and any conditions in the Konvenju are satisfied, you meet at the notary's office to sign the final deed of sale and pay the balance. At this meeting you also settle the remaining 4% of stamp duty (5% total on the purchase price — 1% paid at Konvenju, 4% at Kuntratt), notary fees, and any other sundries.
Full Cost Summary for Property Purchase
| Cost | Amount | When Paid |
|---|---|---|
| Stamp duty | 5% of purchase price | 1% at Konvenju, 4% at Kuntratt |
| Notary fees | ~1–2% + VAT | At Kuntratt |
| AIP permit (if required) | €233 | During Konvenju period |
| Architect's valuation | ~€300 | Before Konvenju |
| Agency fees | Typically paid by seller | Verify in your contract |
| Bank mortgage arrangement fee | Varies (0.5–1%) | At drawdown |
On a €375,000 apartment: stamp duty = €18,750, notary ~€5,000–7,500. Total transaction costs: approximately 6–8% of purchase price. No annual property tax in Malta (a genuine advantage over many European countries), but a small annual ground rent (€40–250/year) may apply depending on the tenure.
Mortgage: What Foreigners Can Expect
Maltese banks lend to non-residents, but typically at a lower Loan-to-Value ratio than to residents — often capping at 70–80% of the property value versus 90% for Maltese citizens buying their primary residence. This means a larger cash deposit is required. Interest rates have risen from their 2021 lows but remain below Northern European equivalents. BOV and HSBC Malta are the main mortgage providers for expats; comparative quotes from both are strongly recommended.
