Malta's Buying Process

In each person’s life, it is a huge step to purchase property. This step should be taken with care and one should be fully aware and understand their rights and duties connected to such a deal.

At McCarthy Rentals, our Associates, in conjunction with the extended experience of our office managers and advisors in Malta who are experts in purchasing property, we are adequately equipped and manage to give the client guidance through this entire procedure. We are at all times prepared to listen to your questions and offer answers to the numerous concerns normally associated with such a venture.

The Initial Approach

Attempt to obtain a concise idea on the requirements such as the property type and dimensions as well as long term plans.

  • Is it mandatory to have an entertaining section, either indoors or outdoors?
  • Will it be property which is modern or traditional?
  • Is it vital for it to be situated in a specific location because of the workplace or kids’ school?
  • Should the property consist of space for maybe a kid’s hobby or a playroom area?
  • Where will financing for the purchase come from? Will the banks be involved?

Obviously, answering all the questions above might not be totally possible, particularly in case one is purchasing for the first time and is not experienced in market prices. We would advise for a great concept to be formulated and presented to one of the Associates we have, preferably booking an appointment for a meeting in the office.

Here, in addition to other elements, our Associate will create a list of properties available. Many of them are complete with images, which satisfy everyone’s needs. After this first meeting has taken place and an inventory of properties for viewing has been chosen, the Associate will make arrangements for appointments to view.

Normally, this part is highly demanding, in the entire procedure on the side of the client. At McCarthy Rentals we are aware of the drawbacks and the way to evade them.

The Associates we have are trained well on how vital respect for the client is, beginning from our stringent code of reliability as well as impeccable manners; in general, a pleasant demeanour. In this manner, we anticipate to change this task to something which is pleasurable, with minimum stress.

After Property Selection, What Follows?

After selection of the vacant property and the cost also in addition to any particular conditions appropriately discussed and agreed on, an appointment will be scheduled for the Preliminary Agreement’s signing (or ‘Konvenju’ as is popularly known).

Essentially, this is an agreement that is binding to the buyer and seller, for finalising the transaction in the course of a set date (or term of Konvenju). A list of conditions indicated below is subject to this:

  • The approved selling cost.
  • Ground rent where appropriate (perpetual or temporary)
  • Any tasks the seller needs to finalize, if any
  • Whatever movable items incorporated in selling costs, if any
  • Whatever other specific terms requested for and agreed on from either party, such as subject to building permits or bank loan.
  • Terms of payment (sometimes planned with works) if the seller requests.

Malta Selling Process

The selling process is very easy and safe. After you get a purchaser for your property and sale cost and the terms and conditions are agreed on, you sign a Promise of Sale Agreement with the purchaser.

The Notary draws up this agreement which is binding to the two parties until the final deed of sale is signed. When the Preliminary Agreement is signed, a deposit of 10% is usually lodged by the purchasers with the Estate Agent or Notary.

This deposit is going to be forfeited to favour you in case the purchaser does not sign the final deed for no lawful reason. The agreement’s term of validity is agreed between the two parties; but, normally agreements are applicable for three to six months.

During this time, the Notary is going to register the Preliminary Agreement in law terms, conduct title searches and make applications for any permit if required.

No limitations exist on property owners to sell at any amount. Mostly, when it comes to foreign nationals, the total sale cost including movables’ sales proceeds may be sent back abroad. In this case, the Notary applies for authorization from the authorities (local tax) before signing the final deed of sale.


There is no tax chargedon the property which is being transferred, ifit has been the owner’s personal home for a minimum of 3 consecutive years and it has been sold within 12 months of moving from the property.

On your secondary property, a 5% tax is applicable if property is not used within a commercial project.

If the property being sold, forms part of a commercial project, an 8% tax is applicable.

If the seller has owned the property for more than 5 years, a 10% tax charge is imposed on the final property’s selling price.

A capital gains tax charge at a rate of 10% is imposed after the sale of property obtained via inheritance (Causa Mortis). This is for the surplus of transfer value over acquisition value as stipulated in Causa Mortis deed.

Repatriation of Proceeds from Sale

After the final deed of sale is signed, McCarthy Rentals will instantly repatriate the proceeds from the sale to the seller’s account abroad. In addition, via arrangements we have with top foreign exchange brokers as well as financial institutions, we will manage to obtain good exchange rates existing at the time.

We understand how people could feel anxious when funds are in transit, so every effort will be made to speed up the transfer of money to the seller’s account.

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