Discover Designated Areas

Special Designated Areas

Special Designated Areas (SDAs) consist of different types of special apartment and penthouse buildings located in different localities around Malta and Gozo that allow EU and non-EU nationals to acquire property in Malta with the same acquisition rights as Maltese citizens and without the requirement for an AIP permission (Acquisition of Immovable Property). 

As a result, there are no restrictions on how many SDA properties a buyer may buy, and once purchased, the owner can lease or rent the property for sale without restriction (any rental income is taxed at 15 percent). As a consequence, both foreign and Maltese investors are enthusiastic about these developments.

Special Designated Area Benefits

Benefits of buying property in a Special Designated Area

Buying property in Malta in a Special Designated Area can be an excellent property investment. Property investors whether purchasing Malta real estate in Special Designated Areas as their personal home or to let (buy-to-let) can benefit from the following advantages: 

1. No Permits required to buy property in SDAs

As previously mentioned, EU and Non-EU property investors, irrespective of the buyer’s nationality, interested in purchasing property in Malta or Gozo in a SDA do not require an AIP permit.  

However, according to the Maltese laws, property investors buying property in Malta or Gozo outside of an SDA are required to get the Acquisition of Immovable Property (AIP) permit. Furthermore, Malta real estate purchased under an AIP permit cannot be sublet. Prior investing and buying property in Malta or Gozo we suggest to take a look at the Chapter 246 of the Laws of Malta.

2. Renting SDAs

There are some limits on renting out Malta real estate obtained under an AIP permission. For instance, when renting any type of property in Malta, you are subject to a 15 percent tax charge. On the other hand, if the Malta property is located in a Special Designated Area, property investors are free to lease or rent it out without paying any taxes. 

3. Residency and citizenship programmes

Prior purchasing or investing in a property located in a Special Designated Area, the government of Malta offers a number of residency programmes to foreign investors like the Malta Permanent Residency Programme (MPRP) and the Malta Global Residency Program (MGRP). 

An investor must satisfy the mentioned programmes in order to purchase a property for sale in Malta or Gozo worth a certain amount. Read our guides and take a deeper look at this property investment programmes. 

Residency Permit

Special Designated Areas residency permit

The residency permit laws in Malta do not apply to Special Designated Areas. This implies that foreigners have the same rights as locals when it comes to purchasing luxury houses.

This means that a foreigner buying property in Malta does not require an Acquisition of Immovable Property permission, regardless of their nationality. The property investment can then be leased without any limitations once it has been purchased.

As a result, foreigners interested in investing in a buy-to-let property in one of Malta’s Special Designated Areas do not need a permission.