TAKING UP RESIDENCE?

Investment

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Malta has a very healthy property rental market. This is due to the constant influx of people from overseas coming to reside in Malta, working under contract for local and foreign companies and embassies. Their periods of stay on the island normally range between 1-3 years. These people normally demand quality property to rent, with budgets ranging from anywhere between €1,500 to €10,000 monthly. Investment in this type of property normally gives a steady return of between 3.5% to 6% annually. We advise our prospective investors on the most profitable property to purchase and procure reliable tenants through our very active letting department.

Property purchasing expenses

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• Duty on Documents 5%
• Notarial fees 1%
• Ministry of Finance €233
• Deed Searches calculated by formula and varies according to the value of the property purchased.

Conditions For Application

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One must own worldwide capital of at least €349,400 or have an annual income of at least €23,290.

The permit holder is also required to remit €13.980 per annum plus €2,329 per annum for each dependent.

Furthermore, a Residents Scheme permit holder is required to purchase or lease property in Malta, having the following minimum values:

• Purchase of apartment: €99.000
• Purchase of house: €165,000
• Lease of residence: €4,192 per annum

The amounts to purchase property are periodically adjusted in accordance with the rate of inflation.

EU Citizens

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Citizens of all European Union member states, including therefore Maltese Citizens, who have resided in Malta continuously for a minimum period of five years at any time preceding the date of acquisition may freely acquire immovable property without the necessity of obtaining a permit under Chapter 246 of the Laws of Malta.

Citizens of all European Union member states, including therefore Maltese Citizens, who have not resided continuously in Malta for a minimum period of five years may only purchase their primary residence or any immovable property required for their business activities or supply of services without the necessity of obtaining a permit under Chapter 246 of the Laws of Malta.

Citizens of all European Union member states, including therefore Maltese Citizens, who have not resided continuously in Malta for a minimum period of five years, require a permit under Chapter 246 of the Laws of Malta to acquire immovable property for secondary residence purposes.

Individuals who are not citizens of a European Member state may not acquire any immovable property unless they are granted a permit in terms of Chapter 246 of the Laws of Malta.

There are defined zones in Mata, referred to as special designated areas, where there are absolutely no restrictions to acquisition which include: Portomaso, Tigne Point, Verdala Mansions, Cottonera Waterfront, Tas-Sellum etc. There is also no restriction on acquisition through inheritance and there are also several other special exemptions. Different rules apply to the acquisition by bodies of persons.

Non-EU Citizens

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Non-EU citizens need to apply for an AIP (acquisition of immovable property) which is issued by the Ministry of Finance and is applied by a notary and is granted in approximately 3 months.

They require documentary evidence proving that the funds for the purchase have originated from outside Malta. The property purchased may only be used by the purchaser or his/her immediate family and friends.

Application Process

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The application form has to be accompanied by the following documents:

• A copy of the applicant's birth certificate or marriage certificate, as applicable
• Three passport-size photographs in respect of the applicant and his or her spouse and dependants (where applicable);
• A police conduct certificate in respect of the applicant and his or her spouse (where applicable) from the police authorities nearest to the place of residence. Such certificate should also indicate whether there are any ongoing criminal proceedings. If the certificate issued by the police authorities does not contain such information, applicant should make a declaration on oath before a Commissioner of Oaths attesting whether he ever had any criminal convictions or whether he has any ongoing criminal proceedings. UK applicants must submit a "Subject Access Enquiry Certificate";
• Where a police conduct certificate is not possible, applicants should provide three character references from such professionals as their bankers, medical practitioner, solicitor, employer, accountant, or any person of similar standing;
• A copy of the personal details page in the applicant's passport as well as that of his or her spouse;
• A financial certificate from the applicant's bankers, accountants or a financial institution, stating that the applicant has an annual income in excess of €23,290 or a minimum capital of €349,400, and is able to transfer €13,976 per annum. The €13,976 must be increased by €2,329 for each dependant whose name appears on the
• Application (e.g. for an applicant and spouse the amount required is €16,305);
• A copy of either the deed of purchase or the lease/rent agreement if the applicant already owns or rents/leases property in Malta. If the applicant does not already own/lease property in Malta a copy of such deed/agreement is required to be produced at the point in time when one actually takes up residence in Malta this being not later than 12 months after the date of issue of the residence permit.
• Children of age and parents of residents in possession of a Residence Permit do not enjoy the advantages of Residence Permit holders.

Timing

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The holder of a permit must take up residence within 12 months from the issue of the said permit. Other Residents

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An individual may also take up residence in Malta other than in terms of the Residents Scheme. Upon arrival, immigration authorities normally allow foreigners to stay in Malta for an initial period of three months. After that period one would have to apply to the Immigration Authorities to reside in Malta.

An individual may also become a resident of Malta as a consequence of taking up employment in Malta. A foreigner taking up such employment would require employment permission, which would be applied for by his employer. Self-employed persons may take up residence in Malta