Buying A Home In A Special Designated Area In Malta

Located in the Mediterranean, Malta has been popular for decades as a great destination for tourists as well as for expatriates interested in investing or buying real estate in Malta. For the last two decades, favourable tax regulations, improved red tape, increased accessibility and regulatory development has encouraged a growing number of people to invest in Malta property.

About Special Designated Areas

There are certain areas that are designated as the primary residential areas. In these areas, foreign residents have the same rights as the Maltese when it comes to buying property in Malta. 

The property investment in these areas have been designed to offer high end amenities and condominium facilities to residents such as marinas, spas, swimming pools, shopping malls, supermarkets and restaurants.

The current Special Designated Areas in Malta and Gozo are the following.

• Portomaso Marina Development, St. Julians, Malta;
• Portomaso Extension I, St Julians, Malta;
• Cottonera Development, Cottonera, Malta;
• Tigne Point, Tigne, Malta;
• Tas-Sellum Residence, Mellieha, Malta;
• Madliena Village Complex, Malta;
• SmartCity, Malta;
• Fort Cambridge Zone, Tignè, Malta;
• Ta’ Monita Residence, Marsascala, Malta;
• Pender Place, St. Julians, Malta;
• Metropolis Plaza, Gzira, Malta;
• Fort Chambray, Ghajnsielem, Gozo;
• Kempinski Residences, San Lawrenz, Gozo.

Permit requirements

Special Designated Areas are exempt from the residency permit rules in Malta. This means that foreigners can invest in luxury homes with the same rights as the local citizens. 

This implies that regardless of their nationality, a foreigner in Malta, would not need an Acquisition of Immovable Property permit for buying property in Malta. Once the property investment has been acquired, it can also be leased without any restrictions.

Therefore, it can be said that foreigners willing to buying to let investment in one of Special Designated Areas in Malta, do not require a permit.

Leasing Special Designated property

One of the biggest benefits of purchasing one of the properties in the Special Designated Areas is that it can also be leased out without any restrictions (Buy-to-let Property). Those who invest in these Malta properties can decide to lease the property whenever they wish without no restrictions allowing investors to enjoy rental yields and capital growth.

Properties outside the Special Designated Areas

Any Malta properties that are located outside of these Special Designated Areas will require a permit from the Ministry of Investment, Economy and Finance. This permit is known as the AIP or the Acquisition of Immovable Property permit. 

The permit will be issued only if all the conditions of the Maltese Law have been met. This permit will be needed for investing or doing business in Malta real estate outside of the designated area. Read more about other investor programmes like the MIIP or GRP before purchasing a rental investment in Malta.  

Leasing of property acquired through AIP permit

If the Malta property has been acquired by getting the AIP permit there will be certain leasing restrictions that will apply. Due to the permit being acquired as a primary residence, the law does not allow the property to be leased out unless the property is licensed by the Malta Tourism Authority as a holiday rental property.

Practicality

Another major advantage that Malta property investors will enjoy if they purchase a Malta property investment in one of the Special Designated Areas is that they have been designed for practicality and have all amenities and facilities within close proximity. 

Having been built specifically for non-Maltese residents the unique needs of the foreigner living abroad have been accommodated. With easy access to entertainment areas, they provide the services of a metropolitan centre as well as security and comfort.