What does renting residential property in Malta involve?
The steps required to rent a property in Malta are quite simple. The two most important decisions to be made are the type of property and location. It is important to work with the right agency having the right properties as well as, to have the right person to show you the right properties and not waste your precious time. Having sourced your ideal rental property the terms of the lease are established to typically include:
- Rent payment details;
- A reimbursable security deposit usually equivalent to one month’s rent;
- Agency fees (generally half of the first month’s rent plus 18% VAT)
- Maintenance agreements
- Expiration date of the lease period
Property rental prices vary depending on the type of property, whether it is furnished, its location and leasing duration. More often than not, rental properties are fully furnished, however it is possible to find unfurnished options. Short-term rentals, typically classed as being less than six months, normally include external amenities such as water, electricity and an Internet connection. Long-let renting clients usually pay for external amenities and based on their consumption, this typically amounts to €50 per month, per individual.
Where in Malta should I rent?
Where to rent depends very much on the client. Malta and the smaller island of Gozo present a good selection of rental properties, ranging from modern sea view apartments to luxuriously finished country farmhouses. The Inner Harbour region is known as being the most tourist-populated part of Malta. This region encompasses the towns of Sliema, Swieqi, St Julian’s, Balluta and Msida, offering a more modern, ‘city-like’ feel to the island.
The Southern and Western parts of the island are known for offering a more calm and laid back lifestyle. Towns include Siggiewi, Zebbug, Birzebbuga and Marsaskala. For those after a completely authentic and traditional Maltese way of life, Gozo is the place to try. All towns in Malta offer necessary amenities such as grocery shops, police stations, post offices and pharmacies.
What does Malta have to offer?
Malta’s weather is a major factor in its popularity. It has warm winters and hot summers. Typically, the temperature in winter does not fall below 10 degrees Celsius. In summer, it can rise to over 35 degrees Celsius.
The Maltese islands are a unique blend of history and festivity. There are many cultural events and sites to visit, such as Neolithic temples, ancient cities and street feasts, as well as many exclusive clubs and restaurants. Malta also offers a good selection of beaches and holiday resorts.
Malta’s health services are renown, having placed 5th in the World Health Organization’s (WHO) survey of global healthcare. Healthcare is offered free of charge to all Maltese nationals and EU citizens in possession of a European Health Insurance card (EHIC). Non-Eu citizens seeking to apply for residence in Malta are to be covered by an All-risk medical insurance policy.
Buying property in Malta
The islands of Malta and Gozo offer a wide selection of properties in varying surroundings, some encompassing sea and country views, others city residencies and even gated communities.
Types of Residence in Malta
Once the decision has been made to invest in property, the next step is to select the preferred type of residence. Property in Malta is divided into six categories: apartments, maisonettes, villas, houses of character, terraced houses and farmhouses. Other factors to be considered are location, size, property style, resources and services such as schools and proximity of entertainment, and most importantly a budget. Your local real estate agent is just as important. Seek advice to select a suitable agent able to offer a customized service and proper guidance.
Notary Public, Preliminary Agreement and Deed when Buying Property in Malta
Having selected the right property, agreed on a price and the terms and conditions of acquisition, the next step is to appoint a Notary public to draw up a Preliminary Agreement (locally known as a konvenju) to be signed by the vendor and the purchaser. At this stage the norm is for the purchaser to pay a deposit of 10% on account of the selling price to secure the eventual transfer of the property. In most cases and unless otherwise agreed the deposit is held by the Notary public on behalf of the buyer and transferred to the seller on final deed of sale once the root of title has been accurately established. A provisional stamp duty equivalent to 1% of the purchase price is also paid by the purchaser on signing of the preliminary agreement. (Learn more on Stamp Duty Fee in Malta)
Before a final deed is enacted, the notary public will verify the legal title, and confirm that there are no outstanding debts burdening the property. Once this is done and the purchaser finalizes the necessary financial requirements for the purchase and the final deed is signed.
European Union citizens do not require a permit to purchase immovable property in Malta, although in order to purchase a second immovable property, one must have resided in Malta for a minimum of five years, otherwise a permit is also required.
Non-European Union foreigners in possession of an AIP (Acquisition of Immovable Property) permit or those who will not use the property as a primary residence must abide by local regulations.
The benefits of living in Malta
Malta is appealing as a place of residence due to it is multidimensionality, as it is both immersed in history and teeming with entertainment options. It provides a substantial amount of cultural and archaeological sites, yet it is home to buzzing nightlife and numerous outdoor activities, such as water sports including sailing, paragliding, golf and horseback riding. There are hundreds of exclusive clubs and restaurants, and three modern casinos set against beautiful backdrops.
The island’s pleasant climate, favourable tax laws, renowned healthcare and education system, low level of crime and friendly English-speaking nation, make Malta an exceptional destination. Its location in the centre of the Mediterranean offers easy access to the rest of Europe and North Africa, with an assortment of airlines offering international connections.
There are the added benefits of Malta being a very small country and not being on a global radar. Its size means that nothing is too far away. It takes forty-five minutes by car to go from one end to the other. Malta’s low profile allows for it to retain its uniquely laid back lifestyle and to not be overrun by tourists all year round. The smaller island of Gozo is undiscovered to a greater extent. It makes for an even more relaxing experience than Malta, which is considered hectic in comparison.