Malta Golden Visa: features, advantages for investors, how to get it

Malta beckons those looking for more than just accommodation, but a unique place where history, culture and modern amenities meet. The island, where the Mediterranean Sea generously drenches the cliffs, promises not only a beautiful view, but also a comfortable way of life. But the question of how to buy a flat in Malta remains a mystery for many. Here it is important to take into account the legal peculiarities, correctly assess the market and find suitable solutions for foreign buyers.

Legal peculiarities: how to buy a flat in Malta safely

Before you start buying property in Malta, you need to understand all the legal nuances. The island has certain laws and rules concerning the rights of foreigners, property registration and taxation peculiarities. This is an important step that will help to avoid trouble and make the purchase process as clear as possible.

Rights of foreigners to purchase property in Malta

Foreigners have the right to purchase property here, but with certain restrictions. The need to obtain a special permit – the so-called AIP (Acquisition of Immovable Property) – is mandatory. This document is obtained by everyone who is not a citizen of the EU, and it allows you to acquire private objects. How to buy a flat in Malta for a foreigner is an important question that requires knowledge of the rules. For example, you cannot buy more than one property without special authorisation and certain areas are also restricted for purchase by foreigners.

In practice, this is as follows: to obtain an AIP, you need to apply to a special agency, attaching copies of your passport and the preliminary purchase contract. The cost of registration is about 233 euros and the process takes about 2-3 weeks.

Property Registration in Malta: What is important to know

The Malta ownership process involves several steps that are important to follow if you decide to buy a flat:

1. Preliminary contract (Konvenju) – signed after agreeing on the price and terms of purchase. This document guarantees that the object will be sold to the buyer and the parties undertake to finalise the transaction within a certain timeframe.
2. Legal check – the lawyer checks the object for legal cleanliness: absence of debts, third party rights and other problems.
3. Final Deed – signed in the presence of a notary, after which the property is transferred to the ownership of the buyer.
4. Payment of Stamp Duty Tax – is 5% of the value of the property and is payable at the time of the transaction.

Documents for buying a property in Malta: passport, contract of sale, certificate of ownership (if necessary), and proof of funds.

How to buy a flat in Malta: tips and advice

Buying a property is not only a matter of money, but also a strategic move. It is important to choose a home carefully, to take into account all the nuances and, of course, to orientate yourself correctly in the local environment. Let’s look at the key points that will help you make the right choice and avoid common buying mistakes.

How to choose a property in Malta: what is important to consider

When choosing a property, it is important to consider several factors that directly affect the cost and comfort of living. Property prices in Malta vary depending on the location and type of accommodation. For example, a flat in Sliema will cost an average of 300-500 thousand euros, while similar housing in a less popular region – in 200-250 thousand euros.

Selection criteria:

1. Neighbourhood: it is important to consider which neighbourhood is closer to your heart and lifestyle. For people who like a vibrant atmosphere, go for more lively ones such as Sliema or St Julian’s, where restaurants, cafes, shops and beaches are concentrated. For those looking for peace and privacy, look for areas such as Mellieha or Marsaslokk, where there are fewer tourists and noisy entertainment.

2. Infrastructure: availability of developed infrastructure is a key factor. Check how close you are to shops, supermarkets, pharmacies, schools, hospitals and other essentials.

3. Housing types: from traditional Maltese houses and townhouses to modern apartments and penthouses. It is important to recognise which style of accommodation is more familiar and suited to the requirements. For example, penthouses are often offered with magnificent sea views, while townhouses may have larger floor areas and unique architectural features.

4. Presence of parks and green areas: if outdoor recreation is important, look for flats in areas with parks or near the sea where you can walk and enjoy the fresh air.

5. Noise level and safety: also important parameters. If you choose a place for permanent residence, it makes sense to pay attention to the level of security of the neighbourhood and its relative quietness. This is especially important for families with children who need a quiet atmosphere.

6. Accessibility to public transport: for those who do not plan to use a car, having good transport links is an important factor. Malta is renowned for its extensive bus network, as well as the availability of taxis and other means of transport, making it easy to get anywhere on the island.

7. Price growth potential: assess not only the current value of the property, but also its growth potential. Some areas of Malta are rising faster than others and this can be a worthwhile investment.

Mortgage in Malta: how to get a mortgage and what to consider

For those who plan to use a mortgage to buy a flat in Malta there are a few nuances. Mortgage loans are provided by local banks Bank of Valletta and HSBC. Interest rates are about 3-4% per annum, and the loan term can be up to 25-30 years. Russians can also get a mortgage, but they need proof of income and an additional set of documents: tax returns and income certificates.

To increase the chances of getting a loan, it is worth engaging a local consultant who will help with the paperwork and provide advice on choosing a bank.

Investing in Malta property: prospects and peculiarities

The cost of housing on the island is steadily increasing: The country attracts investors with its economic stability and favourable tax regime. The average growth in property prices is 5-7% per year, so buying a flat in Malta is an excellent option for long-term investment.

It is also important to take into account that there is a programme “Citizenship for Investment”: with investments from 650 thousand euros you can expect to receive Maltese citizenship, which opens access to EU countries without visas.

Conclusion

Buying a flat in Malta is possible if you are well prepared. It is an opportunity to become part of a unique island with a rich culture and a comfortable living environment. If you approach legal issues correctly, take into account the peculiarities of the market and use the advice of professionals, the purchase of property will become not only a successful transaction, but also an investment in the future.

For an investor, the answer to the question of what commercial property is, is the key to understanding a powerful financial instrument. Here, every square metre is active: it generates stable income, increases capital and serves as a reliable shield against inflation. Unlike the residential sector, business real estate requires deep business thinking, careful analysis and precise calculations, but its returns are incomparably higher. It is not just a purchase, but a strategic investment in the growth of your wealth.

What is commercial property?

Unlike residential, it doesn’t just “live” – it works. Rental income, value growth, inflation protection – each unit of space becomes an economic lever.

By definition, commercial facilities include premises used to generate profit: office, retail, industrial, warehouse and street retail formats.

The main distinguishing feature is the use of the space for income generation, rather than residential purposes. Hence, the key difference between residential and commercial property is its functional purpose and the way it participates in the economy.

Types affecting the strategy

The type of property determines not only the yield, but also the asset management strategy. The operating format affects the lease term, liquidity and exit scenario of the investment.

The market categorises assets by purpose and operating format:

1. Office space concentrates demand from IT, consulting, development and other smart industries. Class A office space yields up to 12% per annum in Moscow if occupancy levels are high.
2. Commercial property focuses on retail: from supermarkets to shopping malls. One anchor tenant at the Lenta or Magnit level will stabilise the cashflow for years.
3. Warehousing gives minimal maintenance costs with the growing demand for fullfillment and logistics. For 2023, vacancy in the segment did not exceed 1.5% – a record for the last decade.
4. Production facilities provide stability, especially when placed under a specific operator. Rental rates are lower, but the lease term is above the market average.
5. Free-use premises can be flexibly adapted for salons, clinics, mini-offices. Minimal conversion costs – maximum variability.

What commercial property is, the very structure of the offer suggests: type, location and tenant determine the income model and the degree of risk.

How a square metre earns

Earning money from commercial property is not limited to renting. An investor uses several channels:

1. Rental model – monthly receipts that generate passive income from commercial property. Yields range from 7% to 18% depending on the segment and region.
2. Value growth – capital appreciation through inflation, improvements and locational renovation. A property on the outskirts may increase in value by 35% after the opening of a new transport interchange.
3. Redevelopment – repurposing an obsolete building for new functionality, for example, from a warehouse to loft offices.
4. Equity – purchase at the excavation stage and exit on completion at a 30-50% premium in 12-18 months.
5. Buy to let – the sale & leaseback model eliminates downtime, with the tenant signing a long-term contract before the transaction.

Yield depends on the segment, condition of the facility, and geography. For example, in Kaliningrad, retail premises of the “district centre” format yield 14% per annum, while an office in the centre of St. Petersburg yields about 9%.

Pros and cons in numbers and details

Investing in for profit properties is traditionally thought of as a ‘safe haven’, but what is commercial property without sorting out the pros and cons?

Pros:

1. The yield is higher than that of housing (by 3-7 p.p. on average).
2. Contracts of 3-10 years fix the rate, providing stability.
3. Capital depreciation is minimised – property is indexed faster than inflation.
4. Ease of scaling – buying a second, third facility does not require reorganisation of the business.
5. Professional management companies take care of the routine completely.

Minuses:

1. The starting threshold is higher – entry from RUB 8 million, even in the regions.
2. High correlation with economic activity – the residential sector suffers faster in a crisis.
3. Difficulty in finding a tenant – downtime can be as long as 4-6 months.
4. Difficulties in conversion – conversion requires permits and investment.
5. The disadvantages of commercial property are magnified when there is a lack of diversification.

Rookie mistakes boil down to buying without analysing: ignoring location, condition, legal encumbrances and target model. For example, buying an office in a class “C” business centre without a tenant is not an investment, but a lottery.

How to avoid mistakes and increase profitability

Newcomers often seek quick results, ignoring strategic planning. To maximise profitability, it is important to consider not only the commercial property, but also who the end tenant will be. What maintenance costs will be required and what growth potential the property has.

Example: the acquisition of free space near a future metro station can increase capitalisation by 20-40% within 2 years. Analysis of transport accessibility, density, competition and infrastructure is critical. Street retail at the exit from the metro brings a rental flow higher by 25-30% than a similar space deeper into the neighbourhood.

An investor who uses professional tools – from legal due diligence to traffic analysis – minimises risks and gains a competitive advantage. A reliable contract, a quality tenant and a long-term strategy stabilise passive income from commercial property.

Examples of international strategies

The question of what constitutes commercial property becomes particularly relevant when entering foreign markets. One example is property investment in Malta. The island offers stable legislation, an English-speaking environment and a growing demand for office and retail properties. The rate of return is around 6-7% per annum, but with high capital protection and the possibility of a residence permit for purchases from €300,000.

In Lisbon, office space has increased in value by 43% over the last 5 years. In Dubai, retail properties show high liquidity due to the influx of tourism and a favourable tax system. But both there and in other locations the rule applies: without a deep analysis of the market and specifics – do not invest.

When it is most profitable to invest

The ideal moment to enter is not during a period of hype, but at the moment of correction. For example, in the second quarter of 2023, the market for industrial premises in the Moscow region showed an increase in rates by 7% due to limited supply – this was a signal to buy. That said, it is not “when” but “where” that is more important.

Commerce does not tolerate spontaneous decisions. An assessment of liquidity, projected profitability, the technical condition of the property and legal restrictions is a mandatory stage. A simple warehouse without heating can turn into a loss, while a properly zoned office in a promising location can become an asset with a yield of 15% or more.

What to consider when selecting a site

What is commercial property without a systematic approach to selection? A potential investor analyses:

1. Tenant Target Audience.
2. Neighbourhood Infrastructure.
3. Segment Competition.
4. Facility condition and hidden costs.
5. History of the property and encumbrances.
6. Prospects for the development of the territory.

Example: a coffee shop space near the university exit will provide steady traffic, but will require noise insulation, a storefront facade, and food profile approval. Lack of attention to detail is a direct path to mistakes and losses.

What is commercial property: conclusions

What commercial property is a tool for sustainable capital growth. The object generates income, increases the value of investments and reduces inflation risks.

The market requires calculation rather than intuition. Only strategy, analysis and understanding of risks turn the area into an asset, not an encumbrance.