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Buying a Home In a Special Designated Area In Malta

Buying a home in a special designated area in Malta is simpler than you think. Find out the permits required to invest in Malta property.

Located in the Mediterranean, Malta has been popular for decades as a great destination for tourists as well as for expatriates interested in buying real estate for their personal needs or as a business investment. For the last two decades, favourable tax regulations, improved red tape, increased accessibility and regulatory development have encouraged a growing number of people, including EU and Non-EU residents to invest and buy hot properties for sale in Malta.

About Special Designated Areas

Special Designated Areas (SDAs) consist of a type of real estate in Malta and Gozo that can be found in certain areas that are designated as primarily residential areas. In these areas, foreign residents have the same rights as the Maltese when it comes to buying property in Malta. 

Special Designated Area properties for sale, 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.
  • Mercury House Site, St. Julians, Malta.
  • Metropolis, Gzira, Malta.
  • Southridge, Mellieha, Malta.
  • Quad Business Towers, Birkirkara, Malta.
About Special Designated Areas in Malta

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 buy to let investment in one of the Special Designated Areas in Malta, do not require a permit.

Leasing Special Designated property

One of the biggest benefits of buying hot properties for sale in the Special Designated Areas is that they 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.

Leasing Special Designated property

Properties outside the Special Designated Areas

Any types of homes in Malta and Gozo that is located outside of these Special Designated Areas, even in the top 10 best localities, 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. 

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 hot property for sale 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.

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