Qualifying Property
During application stage the applicant undertakes to fulfil the obligation to buy or rent the property in Malta. Is an affidavit enough or does one need a promise of sale/rent agreement?
If applicant fulfils declaration in Form MPRP1 to provide proof of title to a qualifying property in Malta in accordance with the provisions of the Malta Permanent Residence Programme Regulations, applicant at this stage would not need to provide a promise of sale or rent agreement. It is important that this declaration is certified via a licensed agent who will verify the beneficiary’s identity via digital software made available by Residency Malta or else, an applicant has the option to sign Part G of the Form in the presence of a 'Commissioner for Oaths', who in turn must compile Part G accordingly.
Can applicant take a loan to buy the qualifying property?
This matter is at the discretion of the Bank.
Would the minimum property requirements no longer apply, after a qualifying property has been held for the first 5 years?
The beneficiary is not obliged to retain possession of the qualifying property stipulated in the respective legal notice. However, to retain the residence permit he/she must hold a residential property in Malta or Gozo.
Would an Acquisition of Immovable Property (AIP) permit be required if the qualifying property is not in a Special Designated Area (SDA)?
Yes, the acquisition of immovable property permit is still required.
A client explained that he has just bought a property in the South of Malta for circa €220,000 and will be spending a minimum of €100,000 on it - therefore the total cost to him will be in excess of the €300,000 required for a property in the South. Will this be considered as a satisfactory property investment?
Yes. Provided that the property is purchased before the date of application and on which works have been carried out at the expense of the client after such purchase, shall be considered to be a qualifying owned property insofar as the value of such property is not less than €300,000 as supported by an independent architect’s detailed valuation report including a plan of the property and a description of works undertaken. The Agency may, in its discretion, appoint an architect to determine the value of the qualifying owned property. In such case, officers of the Agency and/or any architect appointed by the Agency for this purpose shall be granted full and free access to the qualifying owned property to the extent that such access is likely to assist in determining the value of the said property. In all cases, it is within the power of the Agency to decide whether the requirements are satisfied.
For applications submitted from 1st January 2025:
Yes. Provided that the property, situated in Malta or Gozo, is purchased before the date of application and on which works have been carried out at the expense of the client after the purchase, shall be considered to be a qualifying owned property insofar as the value of such property is not less than €375,000 as supported by an independent architect’s detailed valuation report including a plan of the property and a description of works undertaken. The Agency may, in its discretion, appoint an architect to determine the value of the qualifying owned property. In such case, officers of the Agency and/or any architect appointed by the Agency for this purpose shall be granted full and free access to the qualifying owned property to the extent that such access is likely to assist in determining the value of the said property. In all cases, it is within the power of the Agency to decide whether the requirements are satisfied.
Note: For applications submitted from 1st January 2025 the distinction between the South of Malta, Gozo and the rest of Malta will cease.
Would purchasing several rooms in a hotel and owning these for a period of 5 years, naturally without anyone else having access to the rooms in the meantime, qualify?
No, these are not accepted as a qualifying property. The main applicant must lease or purchase a residential property.
It is possible for the beneficiary to first buy a property then rent one?
In the first five years, this is not possible.
Is it possible for the main applicant to first rent and then buy a property?
Yes, it is possible, as long as the qualifying criteria are satisfied in both cases.
Can the beneficiary sell or stop leasing the declared qualifying property during the first 5 years and replace it with another qualifying property?
Yes, during the first 5 years the beneficiaries can sell or stop leasing the qualifying property and buy/lease a new property as long as they continuously satisfy the qualifying property conditions. However, beneficiaries are not allowed to switch from an owned property to a leased property in the first 5 years. There must be no time gaps between the end date of the previous lease/ownership and the new lease/ownership and ideally, such requests should be made within one (1) calendar month prior to the Annual Compliance deadline.
A certified true copy of the purchase/lease agreement of the new qualifying property must be submitted to the Agency as evidence. In case of a Lease agreement the following documents must be submitted:
- Housing Authority (HA) Approval
- Utility Bill (not older than 6 months) – bearing the residential address of the qualifying property
- External photos of the qualifying property, clearly showing the name, number and main entrance of the court/building and the internal door number of the property (if applicable)
- Receipt of rent payment
- Lessor’s Power of Attorney (if applicable)
- Confirmation of De-Registration of previous tenants (if applicable)
In addition, in the case of a purchase agreement the following documents must be submitted:
- Purchase Agreement – signed between parties
- An architect's evaluation must be submitted, indicating the new price of the property if the property was purchased before 2015
- Utility Bill (not older than 6 months and in the name of the MA) – bearing the residential address of the qualifying property
- External photos of the qualifying property, clearly showing the name, number and main entrance of the court/building and the internal door number of the property (if applicable)
- Confirmation of De-Registration of previous tenants (if applicable)
At its discretion, Residency Malta Agency reserves the right to conduct property spot checks. The agents/beneficiaries are also required to declare the number of bedrooms and the total square meters of the property. These details can be included, either in the lease/purchase agreement or as part of the Housing Authority registration form.
Does applicant need to own/lease property in Malta at application stage?
No. Applicant has to own/lease property and submit the relevant documentation within 8 months from the date of issue of the Letter of Approval in Principle. However, a property that would have been leased/purchased before the application submission and which satisfies the rules found in S.L. 217.26 regarding the qualifying property, is still acceptable.