When people ask how much they need to buy a house in Malta, they are usually asking the wrong question — or at least an incomplete one. The deposit is only one part of what you need to have in the bank before you sign anything. The stamp duty alone is 5% of the purchase price, paid in two instalments. The notary takes 1–2% plus VAT. The architect's valuation, the AIP permit (if required), the land registration fee, the bank mortgage arrangement fee — by the time you reach the notary's office for the final deed, the true cost of purchasing a €350,000 apartment in Malta is not €350,000. It is closer to €375,000–380,000, before any consideration of furnishing, refurbishment, or the months between purchase and moving in.
Understanding this clearly before you start viewing apartments is not pessimism. It is the information that separates buyers who close their purchase smoothly from those who arrive at the final deed having underestimated what they owe.
Total cash required for a €350,000 Malta property: Deposit (10% of purchase price) = €35,000. Stamp duty (5% total, 1% at Konvenju + 4% at Kuntratt) = €17,500. Notary fees (~1.5% + VAT 18%) = ~€6,200. AIP permit (if required) = €233. Architect's valuation = ~€300. Bank fees/mortgage arrangement = ~€500–1,500. Total cash needed: approximately €60,000–61,000 — before furnishing and buffer.
The Deposit
The standard deposit in Malta is 10% of the agreed purchase price, paid at the signing of the Konvenju (Promise of Sale). Some sellers accept 5–8% for newly built or off-plan properties; others require 15% for resale properties with competing offers. The deposit is non-refundable if you withdraw without a valid conditional clause. It is held by the agent or notary until the final deed. If the purchase falls through because the AIP permit is not granted or the bank refuses financing — and your Konvenju includes these as conditions — the deposit is returned in full.
Loan-to-Value Ratios: What Banks Actually Offer
Maltese banks are more conservative with foreign buyers than with local residents. Here is what to realistically expect:
| Buyer Type | Typical LTV | Minimum Cash Deposit |
|---|---|---|
| Maltese first-time buyer | Up to 90% | 10% of property value |
| EU resident (5+ years Malta) | 80–90% | 10–20% |
| EU resident (under 5 years Malta) | 75–80% | 20–25% |
| Non-EU / non-resident foreigner | 70–80% | 20–30% |
For a non-EU buyer purchasing a €350,000 apartment with a 75% LTV mortgage: the bank lends €262,500 and you need €87,500 in cash for the deposit alone, plus the transaction costs above. Total cash requirement: approximately €115,000–120,000. This is the number that surprises most non-EU buyers who have read that the deposit is "10%." The 10% is the Konvenju deposit. The total equity required for the mortgage is entirely separate.
Mortgage Terms for Foreign Buyers
Mortgage terms in Malta typically run 15–30 years, with repayment required by age 65–70. Mortgage rates for foreign buyers in mid-2026 run approximately 3.5–5.5% depending on the bank, loan amount, and applicant profile. BOV and HSBC Malta are the main providers. Pre-approval before you start seriously viewing is strongly recommended — it clarifies your budget and signals seriousness to sellers and agents. You will need to provide: proof of stable income for 2–3 years, 6 months' bank statements, the AIP permit (if applicable), life insurance assigned to the bank, and property insurance for the rebuild cost.
First-Time Buyer Concessions
Maltese citizens buying their first property benefit from stamp duty reduced to 1% on the first €150,000 of the purchase price, with the standard 5% applying above that. This concession does not apply to most foreign buyers unless they qualify under specific criteria — verify the current rules with your notary, as they are periodically updated. There is no ongoing annual property tax in Malta after purchase, which significantly improves the long-term cost of ownership compared to many European countries where annual holding costs are substantial.
