Buying a property in Malta is a big deal – a one-bedroom apartment in Mellieha will set you back EUR160,000, while a villa in St. Julian’s will cost EUR1,200,000. If you’re a foreign investor, you might be interested in the market’s resurgence after the Pandemic. While Maltese real estate prices are currently relatively low, the value of properties here continues to rise. Typically, the price of real estate in Malta grows between five and 10 percent a year, and it is possible to earn around 5-10% rental income on your investment.
Apart from the deposit, other costs associated with buying a property in Malta include stamp duty, registration and notary fees, property searches, legal fees, and a share of the agent’s commission. Buying a traditional Maltese house means that you’ll have to pay more than a modern flat – typically five percent of the price of a property is paid to the real estate agent. You can also factor in the cost of a new kitchen if you’re purchasing a brand-new property. Older properties may require provision for heating and air conditioning.
Land tax is another cost associated with buying a property in Malta. The government levies this tax on a property’s land. The cost of land tax is typically EUR250 per year, but this can be as high as several thousand euros. In most cases, however, it is not necessary to pay this tax – the government will usually take care of it. You can opt for a fixed rate or a variable schedule for paying the land tax.