Special Designated Areas (SDAs) in Malta

The Complete Guide for Buyers and Investors

Located in the Mediterranean, Malta offers a mix of historic character and modern amenities. It is known for its coastline, strong economy, and international interest, making it a destination for those interested in both lifestyle and property investment.

Malta's property market is recognised for its stability, resilience, and long-term growth potential. Within this strong market, Special Designated Areas (SDAs), also known as Lifestyle Developments, stand out as some of the most attractive property investment opportunities available.

What Are Special Designated Areas (SDAs)?

Special Designated Areas (SDAs) are residential developments granted a special status by the Maltese Government. This status gives EU citizens, non-EU nationals, and international buyers the same property purchase rights as Maltese citizens.

SDAs make Malta's real estate accessible to a global audience, enabling streamlined property purchases for investors, expats, and high-net-worth individuals seeking residences or investments.

Who Can Buy Property in Special Designated Areas?

A key appeal of SDAs is their inclusive legal framework, which attracts diverse buyers by offering the same purchase rights for all nationalities.

Maltese citizens can purchase property in these areas freely, whether as a primary residence or a secondary residence, without any restrictions.
EU nationals and Maltese citizens can freely purchase and fully own property in SDAs, with no restrictions or special permits required.
Non-EU nationals also benefit, as SDAs eliminate the need for the Acquisition of Immovable Property (AIP) permit otherwise required.

Legal and Regulatory Framework

For international and non-EU buyers, SDAs offer the advantage of not requiring an Acquisition of Immovable Property (AIP) permit or restrictions on the number of properties purchased, unlike outside these zones.

Within SDAs, buyers can purchase multiple units for investment or personal use, and freely rent them out, ensuring flexibility and an investor-friendly environment.

Criteria for Special Designated Area Status

The Maltese Government designates Special Designated Areas according to strict criteria to ensure the highest standards of quality and infrastructure.

Eligible developments are usually large-scale projects featuring modern residential units such as apartments, penthouses, and villas. They are also expected to include integrated amenities, such as security, retail options, dining establishments, marinas, and recreational facilities.

Beyond their physical features, SDAs are intended to enhance Malta's appeal as a destination for international buyers, contributing to the country's dynamic real estate market and supporting the growth of the Maltese economy.

Key Differences between SDA and Non-SDA Developments

	SDA	Non-SDA
Ownership for non-EU nationals	Unlimited	Restricted (AIP required)
Rental possibilities	Allowed	Restricted
Number of properties purchasable	Multiple	One
Property financing options	More accessible for international buyers	More complex for international buyers

List of Special Designated Area Developments in Malta

Malta's most prestigious SDAs each offer their own distinct blend of lifestyle advantages, architectural styles, and investment potential. From luxury marina residences and waterfront apartments to hillside communities with panoramic views, each development is carefully designed to combine comfort with convenience.

These projects go beyond simply providing high-quality homes, they integrate amenities such as private parking, landscaped gardens, shopping outlets, dining venues, leisure facilities, and in some instances, exclusive access to marinas or wellness centres.

Portomaso Lifestyle Development

Location: St. Julian's

Property Type: Apartments, duplexes and penthouses

Amenities: Marina, restaurants, cafes, fitness centre, Hotel access, Health Club, Beach Club and underground parking

Portomaso is one of Malta's most prestigious mixed-use developments, combining luxury residences, business facilities, and leisure spaces in a prime St. Julian's waterfront location. Offering high-end apartments, duplexes, and penthouses with private pools and exquisite finishes, it consistently ranks among top-performing SDA developments. Its strong price growth, high rental demand, and prime location make it highly attractive to investors and potential buyers seeking premium properties.

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Tigne Point Lifestyle Development

Location: Sliema

Property Type: Luxury apartments, townhouses and penthouses

Amenities: Retail mall, restaurants, cafes, fitness centres, landscaped gardens, underground parking, seafront promenade, residents swimming pool, stunning waterfront, on-site estate management services, ample visitor parking, car free environment

Tigne Point is an exclusive lifestyle destination on Marsamxett Harbour, featuring luxury apartments, townhouses, and penthouses with contemporary architecture and stylish interiors. Its prime waterfront location, comprehensive amenities, and high demand from local and international buyers ensure strong rental yields and long-term appreciation, making it a solid choice for investors and discerning buyers seeking city-centre living.

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Laguna Lifestyle Development

Location: St. Julian's, Portomaso

Property Type: Waterfront apartments and penthouses

Amenities: Direct lagoon access, private beach, marina berths, dining, retail, landscaped walkways, underground parking

The Laguna is an ultra-exclusive extension of Portomaso, built around a man-made lagoon and direct water access from selected residences. These luxury apartments combine modern architecture with resort-style living, offering private terraces and sea views. For buyers, the rarity and prestige of The Laguna provide strong capital growth potential and rental income opportunities for those seeking high-net-worth investments.

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Verdala Terraces Lifestyle Development

Location: Rabat

Property Type: Apartments, penthouses with private pools, duplexes, spacious panoramic corner homes

Amenities: Landscaped gardens, panoramic views, private terraces, underground parking, gated community, 24/7 security, wellness hotel & fitness centre, close proximity to nature trails and exquisite dining experiences

Verdala Terraces is a newly launched SDA that combines contemporary luxury with Malta's natural beauty. Set on the historic The Grand Hotel Verdala grounds, the residences overlook scenic valleys and enjoy far-reaching views towards Mdina and the island's countryside. With state-of-the-art design, private pools, landscaped surroundings, and top-tier finishes, Verdala Terraces offers exclusivity and tranquillity close to Malta's cultural heart.

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Fort Cambridge Lifestyle Development

Location: Sliema seafront

Property Type: Apartments, duplexes and penthouses

Amenities: Communal swimming pool, fitness centre, landscaped gardens, underground parking, seafront promenade, 24/7 security

Fort Cambridge blends restored heritage with modern apartments and penthouses overlooking the Mediterranean. Its seafront Sliema location, communal gardens, swimming pool, and wellness amenities offer residents a refined lifestyle while staying connected to the city's cosmopolitan energy.

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Mercury Towers Lifestyle Development

Location: St. Julian's

Property Type: Apartments, penthouses, serviced residences

Amenities: Rooftop & indoor pools, retail outlets, restaurants, entertainment venues, business facilities, landscaped piazza, underground parking, concierge services

Mercury Towers, designed by Zaha Hadid, combines luxury apartments, serviced residences, retail, and entertainment in central St. Julian's. Its iconic architecture, central location, and mixed-use design create high rental demand and long-term capital growth potential for investors seeking landmark properties.

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ORA Residences Lifestyle Development

Location: St. George's Bay, St. Julian's

Property Type: Seafront apartments and penthouses

Amenities: Green and eco conscious development, retail shopping and dining, strategic location, communal pool, underground parking, 24hr security, spa and wellness centre, sports facilities, hotel sky lounge, business centre, 24hr concierge services, residents club, private members club

ORA Residences is a green vertical village in St. George's Bay, featuring open-plan apartments and penthouses wrapped in lush greenery. With a communal pool, wellness facilities, retail spaces, and panoramic terraces, it offers residents a sustainable, modern lifestyle in one of Malta's most vibrant bays.

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Townsquare Sliema Lifestyle Development

Location: Sliema

Property Type: Luxury Apartments

Amenities: Pedestrian walkways, landscaped green spaces and gardens, largest car-free zone in Sliema's town centre, restored 19th Century villa and gardens, open-air shopping, food and dining, underground public and residents' parking

Townsquare in Sliema blends luxury residences, commercial spaces, and community amenities across 12,000 sqm. Its central, walkable location, sustainable design, and high demand for city living make it an attractive opportunity for investors and interested buyers seeking long-term growth and rental potential.

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Southridge Lifestyle Development

Location: Mellieha

Property Type: Spacious apartments and penthouses

Amenities: Panoramic Sea and countryside views, landscaped communal areas, private terraces, underground parking, lift access, gated security, private service road, proximity to sandy beaches, access to Gozo ferry, local shopping, fine dining, cafes, recreational areas

Southridge in Mellieha offers 160 apartments and penthouses with panoramic sea and countryside views. Residences feature open-plan layouts, private terraces, rooftop pools, and high-end finishes, set within landscaped communal areas for a tranquil lifestyle close to Malta's northern beaches.

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Pendergardens Lifestyle Development

Location: St. Julian's

Property Type: Apartments & Penthouses

Amenities: Landscaped central piazza, underground and multi-storey parking, supermarket, retail outlets, over 5,000 sqm of office space, public pool and sun deck, gardens, car-free pedestrian zones, proximity to shopping and entertainment areas, panoramic bay views, 24hr security

Pendergardens is a self-contained lifestyle development in the heart of St Julian's, designed to combine metropolitan energy with the security and comfort of a private community. Built around a landscaped piazza, it offers a wide selection of properties ranging from single bedroom apartments to spacious three-bedroom family units, many with panoramic views over Spinola and Balluta Bay. With prominent architecture, environmentally conscious design, and a full suite of lifestyle amenities including retail, offices, and leisure facilities, Pendergardens delivers a modern, car-free living environment.

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Tas-Sellum Lifestyle Development

Location: Mellieha

Property Type: Apartments & penthouses

Amenities: Communal swimming pools, landscaped gardens, seafront access, private terraces, underground parking, controlled access, car free zone, proximity to sandy beaches

Tas-Sellum Residence offers a low-rise, terraced development along Malta's northern coast in Mellieha, combining modern architecture with scenic views of the Mediterranean. Residences feature spacious terraces, landscaped gardens, and access to three communal pools, providing a tranquil seaside living experience. Buyers are attracted to the coastal charm and holiday-home potential, while investors benefit from seasonal rental demand and long-term appreciation.

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The Shoreline Lifestyle Development

Location: Kalkara, Smart City

Property Type: Seafront apartments, duplexes and penthouses

Amenities: Seafront location, panoramic sea views, access-controlled environment, landscaped open spaces, underground parking, shopping mall with retail and dining outlets, proximity to beaches, safe pedestrian zones, modern layouts, community-focused design

The Shoreline in Kalkara comprises nearly 370 high-spec apartments, duplexes, and penthouses in a prime seafront location. Its scale, modern layouts, and lifestyle-focused design support strong rental demand and long-term property appreciation, making it a reliable investment option.

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Fort Chambray Lifestyle Development

Location: Mgarr, Gozo

Property Type: Apartments, maisonettes and villas

Amenities: Panoramic sea and countryside views, gated community, landscaped gardens, pedestrianised streets, two communal swimming pools, private parking, controlled access, on-site management, energy-efficient modern interiors, proximity to restaurants, beaches, shops, and marina

Fort Chambray in Gozo blends historic fort architecture with modern apartments, maisonettes, and villas. Traditional limestone facades, pedestrianised streets, communal pools, and landscaped gardens create a village-style community with stunning views of Gozo's countryside and the channel to Malta.

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Kempinski Residences Lifestyle Development

Location: San Lawrenz, Gozo

Property Type: Apartments

Amenities: Access to five-star hotel facilities, award-winning spa, indoor and outdoor pools, fitness centre, tennis courts, fine dining restaurants, landscaped gardens, panoramic countryside and pool views, tranquil village setting, proximity to Dwejra Bay, Victoria, and cultural attractions

Kempinski Residences in San Lawrenz, Gozo, combine private apartments with full access to five-star hotel amenities, including spa, pools, fitness centre, and fine dining. Its internationally recognised brand, luxury services, and prime location offer strong rental yields and long-term capital appreciation for investors and potential buyers.

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How to Buy a Property in an SDA

Buying a property within a Special Designated Area in Malta is a streamlined process designed to accommodate both local and international buyers. Unlike standard property purchases, SDAs offer simplified regulations that bypass some of the restrictions imposed on non-Maltese nationals. The process involves a series of clearly defined steps:

Engage a Licensed Real Estate Agent

Work with a trusted real estate agent experienced in SDAs to identify the right property, negotiate, and guide you through the process.

Sign a Promise of Sale (Konvenju)

Once a property is chosen, both parties sign a Promise of Sale Agreement, also known as a Konvenju, a binding preliminary agreement, with a standard 10% deposit.

Conduct Due Diligence & Legal Checks

Your notary verifies ownership, ensures no debts are tied to the property, and confirms compliance with Maltese law.

Final Deed of Sale

The final deed is signed in front of a notary. At this stage, the remaining balance, stamp duty, and notary fees are settled.

Property Registration & Management

After completion, the property is officially registered. Many investors also appoint a property management company to oversee rentals and maintenance.

Renting in an SDA

Special Designated Areas in Malta are not only ideal for buyers but also highly attractive for tenants seeking rental accommodation. These developments are typically situated in prime locations and renting in an SDA provides access to modern, high-quality residential properties equipped with contemporary amenities such as swimming pools, fitness centres, landscaped communal areas, and secure underground parking.

For landlords, SDAs offer the advantage of flexible rental opportunities without the restrictions that apply to non-SDA properties, allowing both short-term and long-term leases, while ensuring strong rental demand from both local tenants and international clients seeking a high standard of living.

Benefits of Investing in SDAs

Investing in a property within a Special Designated Area in Malta offers a unique combination of financial, legal, and lifestyle advantages. These developments are designed to appeal to both local and international buyers, providing streamlined purchasing processes, access to high-quality residences, and strong potential for rental income and long-term capital appreciation.

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Ease of purchase: No restrictions for EU citizens and international buyers.
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Rental opportunities: Owners can rent short- or long-term.
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Tax advantages: Potentially favourable tax structures for rental income and capital gains.
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Residency: Purchasing SDA property can support applications for residence programmes often referred to as a Golden Visa.

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Market Stability: Malta's real estate market remains resilient and backed by a strong Maltese economy.
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High ROI: Properties in SDAs offer attractive rental yield and strong long-term capital appreciation.
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Prestige and lifestyle: Exclusive developments offering premium facilities and services.

The Future of Property in Malta: Challenges & Opportunities

Malta's property market continues to attract international buyers, high-net-worth individuals, and investors seeking stable and profitable opportunities. Special Designated Areas are set to remain central to this growth.

Opportunities in Malta's property market include rising demand for sustainable, energy-efficient residential developments, reflecting global trends and increasing interest among environmentally conscious buyers. There is also significant potential for expansion of luxury lifestyle amenities within SDA developments, from fitness and wellness facilities to waterfront promenades and retail spaces. Additionally, Malta's growing appeal to remote workers, expatriates, and international professionals continues to drive demand for high-quality residential property in prime SDA locations.

Challenges include maintaining a balance between supply and demand to ensure property price stability, while also ensuring that Malta's infrastructure keeps pace with population growth and urban development. Investors and developers must also navigate global economic shifts and changing regulations that can impact the Maltese economy and the real estate sector.

Industry experts and licensed real estate agents agree that, despite these challenges, Special Designated Areas will remain a cornerstone of Malta's property market. They provide investors and homeowners with long-term value, strong rental yields, and security in a market renowned for its resilience and stability.

With careful planning and strategic investment, Malta's SDAs continue to offer unmatched opportunities for both local and international buyers seeking high-quality residential property and sustainable returns.

Whether you're seeking a primary residence, a holiday home, or a high-performing investment, Malta's Special Designated Areas provide unparalleled opportunities. With their unique legal framework, strong return on investment, and international appeal, SDAs are the key to unlocking Malta's thriving real estate market.