Property in Malta - The First Steps to Buying
Malta is one of the most popular holiday destinations and thousands of British holidaymakers flock there each year in droves. But Malta has been attracting more than just the holidaymaker in recent years; more and more prospective property owners are being drawn to this little island in the southern Mediterranean. With calm, clear sea and year-round sunshine it's not hard to see why buying property in Malta, either as a holiday home or with relocation in mind is becoming ever more popular.
Arranging a mortgage to buy property on the island is a fairly straight-forward process. Non-residents or non-Maltese citizens living on the island need to approach the Central Bank of Malta who will then require a banker's guarantee from the bank at home. They specify that the full amount required to cover the cost of the property must be transferred from abroad. A non-resident is not charged any tax on a holiday home bought and they are free to borrow up to 80% of the value of the property from a local bank.
Many people looking to buy in Malta do so with rental in mind. With so many annual visitors to the island, there's lots of money to be made from owning a holiday let. The Maltese government have outlined a number of stipulations for the renting out of property in an attempt to maintain Malta's reputation of good properties. If you're buying property in Malta with rental in mind, its important to remember that you can only rent out a property worth in excess of Lm50,000 and which has a pool. Any property you want to rent out needs to be registered with Malta's Hotel and Catering Establishments Board, and any income made from renting will be taxed at 15%.
It's not uncommon for a non-Maltese resident of Malta to look to buy an additional property to rent out to tourists. More than one property can be bought as long as it's in one of Malta's up-market resorts such as Portomaso, Tigne and Cottonera. This supports Malta's desire to change its image from merely that of a package-holiday destination to attract a higher-class visitor.