Buying A Home In A Special Designated Area In Malta
Located in the Mediterranean, Malta has been popular for decades as a great destination for tourists as well as for expatriates interested in investing in real estate in Malta. For the last two decades, favourable tax regulations, improved red tape, increased accessibility and regulatory development has encouraged a growing number of people to invest in Malta property.
About Special Designated Areas
There are certain areas that are designated as the primary residential areas. In these areas, foreign residents have the same rights as the Maltese when it comes to buying property . The property in these areas have been designed to offer high end amenities and condominium facilities to residents such as marinas, spas, swimming pools, shopping malls, supermarkets and restaurants.
The current Special Designated Areas are the following.
- Portomaso Marina Development, St. Julians, Malta;
- Portomaso Extension I, St Julians, Malta;
- Cottonera Development, Cottonera, Malta;
- Tigne Point, Tigne, Malta;
- Tas-Sellum Residence, Mellieha, Malta;
- Madliena Village Complex, Malta;
- SmartCity, Malta;
- Fort Cambridge Zone, Tignè, Malta;
- Ta’ Monita Residence, Marsascala, Malta;
- Pender Place, St. Julians, Malta;
- Metropolis Plaza, Gzira, Malta;
- Fort Chambray, Ghajnsielem, Gozo;
- Kempinski Residences, San Lawrenz, Gozo.
Special Designated Areas are exempt from the residency permit rules in Malta. This means that foreigners can invest in luxury homes with the same rights as the local citizens. This implies that regardless of their nationality, a foreigner in Malta, would not need a Acquisition of Immovable Property permit for buying property in Malta. Once the property has been acquired, it can also be leased without any restrictions.
One of the biggest benefits of purchasing one of the properties in the Special Designated Areas is that it can also be leased out without any restrictions. Those who invest in these properties can decide to lease the property whenever they wish without no restrictions allowing investors to enjoy rental yields and capital growth.
Properties Outside The Special Designated Areas
Any properties that are located outside of these Special Designated Areas will require a permit from the Ministry of Investment, Economy and Finance. This permit is known as the AIP or the Acquisition of Immovable Property permit. The permit will be issued only if all the conditions of the Maltese Law have been met. This permit will be needed for investing in Malta real estate outside of the designated area.
Leasing Of Property Acquired Through AIP Permit
If the property has been acquired by getting the AIP permit there will be certain leasing restrictions that will apply. Due to the permit being acquired as a primary residence, the law does not allow the property to be leased out unless the property is licensed by the Malta Tourism Authority as a holiday rental property.
Another major advantage that Malta property investors will enjoy if they purchase a property in one of the Special Designated Areas is that they have been designed for practicality and have all amenities and facilities within close proximity. Having been built specifically for non-Maltese residents the unique needs of the foreigner living abroad have been accommodated. With easy access to entertainment areas, they provide the services of a metropolitan centre as well as security and comfort.