Malta’s AIP Changes

Malta Relocation & Residency News

4th August 2020

Malta’s AIP Changes

When buying property in Malta there are a number of policies and procedures that need to be followed. The stipulations on property ownership are dependent on the type of property you buy where it is located and whether you are a Maltese citizen or not.

The process becomes slightly more intricate should you not be a Maltese citizen. Non-Maltese nationals are required to apply for an Acquisition of Immovable Property Permit (AIP Permit) when wishing to buy property outside of Malta’s Special Designated Area’s and they stand to be subjected to a number of conditions such as;

  • The property must be used for residential purposes
  • The property may not be rented out
  • The property may not be sold in part or otherwise into more than one dwelling house.
  • A copy of the notarial deed in relation to the property must be submitted to the AIP section after its publication.

 All AIP submissions by non-residents are processed by the Capital Transfer Duty Department (CTD department) and a non-resident is classified as any individual who is not a Maltase national or has Maltese citizenship and therefore requires an AIP permit to purchase immovable property in Malta outside of Special Designated Area.

Recently however the legislation has changed and in some instances, the AIP permit is no longer necessary, this is of course subject to certain conditions being met. According to the subsidiary legislation entitled the Malta Residence and Visa Programme Regulations - third-country nationals,non-EU, EEA, or SWISS nationals – who have legally been residing in Malta for at least five years, on a continuous basis, are now eligible to apply for long-term residence status.

Long term residency is a status of a permanent nature and individuals granted with this status will be given a permit which will remain valid for five years and is automatically renewable upon application. This status entitles the holder to a number of advantages such as access to employment and self-employment activity; education and vocational training, recognition of any professional qualifications, tax benefits and much more.

In addition, a long-term residency status also means that successful applicants once provided with long term residency status will no longer need to apply for an AIP permit and can purchase property for their private residential dwelling anywhere on the Island.  Permit holders will also have access to all the incentives and reductions introduced by the local Government in relation to stamp duties and property tax.

For more information on the AIP process or the steps that need to be taken to purchase property in Malta, get in touch with Malta Sotheby’s International Realty. Our skilled and experienced associates will assist and guide you through the process of acquiring residential or commercial property in Malta.

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Malta Sotheby's International Realty

Launched on the Maltese islands in 2013, Malta Sotheby's International Realty had one clear vision and goal in mind – to offer our clients the highest level of commitment and quality of service in the high-end residential and commercial real estate market throughout the Maltese Islands. We derive our success from local expertise, professionalism, commitment, and discretion to meet any client’s needs. We understand the importance of finding a home that not only suits your needs but suits your vision for the future – a place that facilitates comfort, creativity and familiarity. We realise that a home is much more than a place to live - it is a sanctuary from where we build families and dreams. Our real estate professionals will guide you towards finding your ideal home throughout the entire buying and selling process. The culture of Malta SIR is defined by our knowledgable and dedicated diverse team which spans over multiple nationalities, whether you are a vendor or a buyer we speak your language.

The listing information set forth on this site is based upon information which we consider reliable, but because it has been supplied by third parties to our franchisees (who in turn supplied it to us) , we cannot represent that it is accurate or complete, and it should not be relied upon as such. The offerings are subject to errors, omissions, changes, including price, or withdrawal without notice. All dimensions are approximate and have not been verified by the selling party and cannot be verified by Sotheby’s International Realty Affiliates LLC. It is recommended that you hire a professional in the business of determining dimensions, such as an appraiser, architect or civil engineer, to determine such information.طراحی سایت