Some lenders advertise loans for non-residents, but each application depends on the borrower, property and loan purpose. AIP rules, rental restrictions and eligibility for buyer support are separate questions.
| Situation | What to know |
|---|---|
| You are a foreign citizen or non-resident applying for a mortgage | Some lenders accept applications from non-residents. HSBC advertises a specific non-resident buy-to-let loan, while BOV says applications are assessed case by case. Neither example guarantees approval for every borrower or purpose. |
| You need to know whether you can legally acquire the property | Mortgage approval and acquisition permission are separate. AIP requirements depend on citizenship, residence history, intended use and location; Special Designated Areas have separate rules. |
| You are estimating your deposit | There is no universal deposit for all foreign buyers. HSBC advertises up to 65% financing for non-residents on its buy-to-let product, based on the lower of the purchase price or property value. |
| You hope to claim first-time-buyer support | The Housing Authority’s 2026 grant terms specify Maltese or EU citizenship, plus other conditions. Separately, Malta’s duty legislation provides a first-time-buyer exemption for qualifying acquisitions; ask your notary to check your circumstances and applicable rules. |
| You are buying in Gozo | The Central Bank’s residential mortgage limits do not set out a separate Gozo category. However, a property’s location in a Special Designated Area can affect acquisition-permit requirements. |
Foreigners can apply, but approval is lender-specific
Yes. Some Malta lenders accept mortgage applications from non-residents. HSBC advertises a buy-to-let home loan for non-residents, and Bank of Valletta (BOV) asks non-residents for additional income and bank-statement evidence. BOV says applications are assessed case by case. These are examples of specific lender policies, not a promise that every foreign applicant, income source or loan purpose will be accepted.
A mortgage offer does not itself give you the legal right to acquire a property. Check lending approval and any acquisition-permit requirement separately, before committing to the purchase. Ask the lender to confirm current product terms for your situation.
AIP permission depends on the buyer, property and intended use
MTCA guidance says people who are not citizens of an EU member state generally need prior authorisation to acquire property. EU citizens who have not lived continuously in Malta for five years generally need a permit for a secondary residence, but not for a qualifying primary residence. For a buyer who is not already resident in Malta, that primary-residence exemption presupposes a change of ordinary residence. Special Designated Areas (SDAs) have no acquisition restrictions under this guidance. Confirm your precise circumstances with a notary or MTCA before signing.
MTCA’s AIP FAQ says a property acquired by AIP permit must be used for residential purposes and cannot be rented out. That restriction matters if you plan a buy-to-let or short let: a lender’s product label does not override acquisition conditions. The FAQ was last updated on 29 August 2025, so confirm how it applies to your proposed property and use with MTCA or your notary.
Deposit, borrowing limits and documents
There is no single deposit amount for every foreign buyer. As one product-specific example, HSBC advertises up to 65% financing for non-residents using its buy-to-let loan, based on the lower of the purchase price or property value. That means the buyer would need to fund at least the remaining 35% of that lower figure, before other costs. If the purchase price is higher than the bank’s valuation, the cash needed can be more than 35% of the purchase price. HSBC also lists a €60,000–€600,000 loan range and a maximum 25-year term, subject to its conditions. These are not market-wide terms or a promise of approval.
The Central Bank of Malta’s amended Directive 16, effective 26 March 2026, applies to resident and non-resident borrowers taking covered domestic residential property loans. Its categories depend on the loan and property use, not foreign citizenship alone. Category I has a 90% loan-to-value cap, with a limited volume allowance for loans above that threshold; Category II has a 75% cap and its own limited volume allowance. For natural-person borrowers in either category, the stressed debt-service-to-income limit is 40%, using a 150-basis-point interest-rate shock. Category II legal-person borrowers engaged in residential-property lending face a separate stressed debt-service coverage ratio test of 1.3x, also with a 150-basis-point shock. These are regulatory limits, not a guarantee that a lender will offer the maximum.
A lender may request identity and income records, bank statements, a property report and valuation, and the promise-of-sale agreement. BOV’s checklist requests additional income and bank evidence from non-residents, including information on savings and credit cards. It also says documents not in Maltese or English must be officially translated and that further documents may be requested. Ask your lender what it accepts for overseas income, employment and credit history before arranging translations or valuations.
Home, buy-to-let, short-let and commercial property are different cases
A lender’s buy-to-let loan is not the same as approval for an owner-occupied home, a short let or commercial premises. The public information cited here establishes one non-resident buy-to-let example, not a general eligibility or deposit rule for every purpose. If you plan to rent the property, explain the exact arrangement to both the lender and your notary, and check whether AIP conditions apply.
Commercial premises may involve business lending rather than a standard personal home loan. HSBC Business Banking lists commercial mortgages for businesses purchasing, refinancing or improving buildings. Its public page does not set a universal deposit or eligibility rule, so tell the lender who will borrow and how the premises will be used.
First-time-buyer grants and stamp-duty relief
The Housing Authority’s 2026 terms specify that applicants must be Maltese or EU citizens, subject to additional conditions. They describe a €10,000 grant paid in €1,000 annual instalments over ten years; qualifying first-time buyers with a valid EU Disability Card issued by Agenzija Sapport may receive €20,000 over ten years. The terms also extend support to certain second-time buyers whose purchase contract is dated after 1 January 2026 and who have no other residential property, with the new home as their sole and primary residence. The property must be bought through a bank home loan and used as the applicants’ ordinary residence. Check the current terms with the Authority before relying on the grant.
The grant is separate from stamp-duty relief. Current legislation provides an exemption on the first €200,000 of the value for qualifying first-time acquisitions made on or after 28 October 2025. The stated test includes no prior inter vivos acquisition of property wholly or partly used—or intended to be used—as a residence, subject to specified exceptions. The provision does not state a citizenship test in these criteria, but acquisition-permit rules are separate. Ask your notary to confirm eligibility and any current conditions before budgeting for the relief.
What changes if you are buying in Gozo?
The Central Bank’s residential mortgage directive does not set out a separate mortgage category for Gozo. Acquisition permission still depends on the buyer and property; MTCA identifies Special Designated Areas as locations with no acquisition restrictions, and some are in Gozo. Do not assume that every Gozo property is in an SDA. Ask the lender about the property’s valuation and loan terms, and have a notary check any permit requirement.
Questions people ask
Can a non-resident get a mortgage in Malta?
Some lenders accept applications from non-residents. HSBC advertises a non-resident buy-to-let product, and BOV says applications are assessed case by case. Neither example guarantees approval for a particular borrower, property or loan purpose.
Does mortgage approval mean I can buy the property?
No. Mortgage approval and permission to acquire are separate. AIP requirements can depend on citizenship, residence history, property use and location, so check your position with a notary or MTCA.
How much deposit does a foreign buyer need?
There is no universal deposit for all foreign buyers. HSBC advertises up to 65% financing for non-residents on its buy-to-let product, based on the lower of the purchase price or valuation. The buyer may need more than 35% of the purchase price if the valuation is lower.
Can I rent out property bought with an AIP permit?
MTCA’s AIP FAQ says property acquired by permit must be used for residential purposes and cannot be rented out. Confirm how the published rule applies to your property and intended use before committing.
Can a non-EU foreign buyer qualify for the Housing Authority’s first-time-buyer grant?
The Authority’s published 2026 terms specify Maltese or EU citizenship, subject to other conditions. The stated eligibility does not include non-EU citizens. Check with the Authority for any later amendment.
Can a foreign buyer qualify for first-time-buyer stamp-duty relief?
The current legislation provides relief for qualifying acquisitions and states criteria based on the property and the buyer’s prior residential-property acquisitions, rather than listing citizenship as a criterion. Acquisition permission is separate, so ask your notary to check both issues.
Are mortgage rules different in Gozo?
The Central Bank’s residential mortgage directive does not set out a separate Gozo category. A property’s location in a Special Designated Area may affect acquisition-permit requirements, but not every Gozo property is in an SDA.
Sources
- HSBC Malta — Buy-to-let home loan
- Bank of Valletta — Home loans documents checklist
- Central Bank of Malta — Directive No. 16: Regulation on Borrower-Based Measures
- MTCA — Conditions for buying immovable property
- MTCA — Acquisition of immovable property FAQ
- HSBC Malta Business Banking — Credit and lending
- Housing Authority — First-time-buyer scheme
- Housing Authority — Property Acquisition Grant Scheme 2026 terms
- Malta legislation — Exemption of Duty in Terms of Article 23 Order
General information, not individual legal advice. Check your contract and current official rules before acting.