Foreign Clients

AIP Permits – Conditions for Buying Property in Malta.

Individuals who are not Maltese Nationals may be subject to certain restrictions on the property that they purchase. Foreign Nationals wishing to buy property in Malta are restricted to purchasing one residential property (after being granted an Acquisition of Immovable Property (AIP) permit) which must be used for their own occupancy, with the exception of properties bought in Special Designated Areas or an SDA.

Properties in an SDA can be leased out without restrictions and there is no limit to the number of properties one can own in an SDA. These properties generally offer a higher rate on the return of investment due to the developments prime location, residential amenities, landscaped gardens, and overall ambiance, making them a popular choice for both local and foreign buyers.

In the case of EU nationals who intend to purchase a property which is to serve as their primary residence; who intend to purchase the property for investment purposes or have been resident in Malta for at least 5 continuous years will not require to apply for an AIP permit.

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What Changed recently? 

As a way of introduction, the Acquisition of Immovable Property (AIP) section within the CTD (Capital Transfer Duty) Department is responsible for the processing of applications by non-residents to acquire immovable property in Malta.

Nowadays, as per the subsidiary legislation entitled the Malta Residence and Visa Programme Regulationsthird-country nationals – non-EU/EEA/SWISS – who have been legally residing in Malta for at least five (5) years in a continuous manner, are now eligible to apply for the long-term residence status.

This status is of a permanent nature and a residence permit would be issued for a period of 5 years.

Hence, as a matter of fact, in the event of a successful application, the applicant, once provided with the long-term residence status, shall no longer require an AIP permit.

In addition, a successful applicant can also avail him/herself from all the incentives and reductions introduced by the local Government in relation to stamp duties as well as property tax.

Acquisition of Immovable Property in Malta by Non-Residents (AIP).

Non-residents outside of the European Union are subject to certain restrictions property purchases. Foreign Nationals interested in buying a property in Malta are restricted to purchasing one residential property (after being granted an Acquisition of Immovable Property (AIP) permit) which must be used for their personal occupancy. Foreign nationals can however purchase multiple properties in Special Designated Areas or as commonly referred to SDA’s.

Any properties purchased in an SDA can be leased out without restrictions. Properties located in an SDA generally provide a higher rate on the return of investment since these  developments are located within a prime location, include residential amenities, landscaped gardens, and a luxurious overall ambiance, naturally making these investments hugely popular to local and foreign buyers.

EU nationals who want to purchase a property as their primary residence and/or intend to purchase the property for investment purposes or have been living in Malta for at least 5 continuous years will not require to apply for an AIP permit.

Non-EU/EEA/SWISS persons – who have been legally residing in Malta for at least five (5) consecutive years, are now eligible to apply for a long-term residence status.

This status is of a permanent nature and a residence permit would be issued for a period of 5 years. Once provided with the long-term residence status, non-EU nationals shall not require an AIP permit.

Long-term residence persons can also benefit from all the Government incentives in relation to stamp duties as well as property tax.

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