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.