LookGozo - Your sSource to Gozo Properties

 

GUIDE FOR BUYING PROPERTY IN GOZO, MALTA:

 

PERMANENT RESIDENCY

Considering its pleasant climate, second to none crime rate, hospitable English speaking locals, tax advantages and its such conveniently positioned central access to anywhere, Gozo is the considerable place to take up residence. Any EU/EEA or other non-Maltese citizens residing here for more than 3 months require an Immigration Permit which is issued on specific conditions.

 

EU, EEA/SWISS AND OTHER NATIONALS

Applicants must acquire or opt to rent their habitual main residence for a minimum purchase price of €275,000 if they are purchasing property on Malta or €220,000 if they are purchasing in the south of Malta or Gozo.  With regards to rental residents must enter into a rental agreement amounting to a minimum of €9,600 per annum if they rent in Malta or €8,750 per annum if they rent in the south of Malta or Gozo. The applicant must enjoy an economical stable income - sufficiently supporting himself and any accompanied dependent/s.


15% tax rate on foreign income is charged when remitted to Malta and double taxation claims are beneficial to permanent residents upon €20,000 annual tax on their behalf and €2500 for any other accompanied dependant. As for non-EU,EEA and Swiss citizens, the minimum annual tax stands at €25,000 and €5000 for each other dependent after claiming such double tax relief.

Any other income of the beneficiary or spouse which is not taxed at 15% will be taxed at 35%. Tax computation is considered in solidum between spouses. Any business activity complied to the Maltese Laws can be carried out by such permanent residents. €6000 is a one-time registration fee due to the government.

 

TAX ADVANTAGES

  • No Wealth Tax
  • No Property Tax
  • No Council Tax
  • No Capital Gains Tax or Final Witholding Tax  charged if selling your main residence (acquired for a minimum of 3 years)
  • Double Taxation Agreements
  • Repatriation of Capital and Income out of Malta

 

PURCHASING PROCEDURES

Once the property is selected and a price and deal is agreed upon, a convenium - promise of sale is signed, binding the vendor to sell and the purchaser to acquire. As a general practice 10% deposit is usually lodged with the notary - either payable upon signing or transferred to a provided Client's accounts within 20 days, which is the stipulated duration for such agreement to be registered with the Inland Revenue Department.

In line with the agreeable terms and conditions, such promise of sale is commonly concluded within 3 to 6 months - allowing the notary to undertake searches and proving a good title. Such period is sufficient for the purchasers to obtain a bank loan if required. Moreover the notary will submit an AIP (Acquisition of Immovable Property) application - if purchasers are non-Maltese nationals and are not acquiring their permanent habitual home.

With regards to the property itself, an inspection by a qualified architect is usually suggested - confirming that such residence is built in accordance with the approved plans as issued by the relative Malta Planning Authority and that the building is structurally sound, and build to good workmanship.

Upon such confirmations, the parties enter into the final contract - written either in Maltese or English as requested, and the remaining price (90%) is paid. Upon deed vendor gives vacant possession.

 

EXPENSES

Tax upon Purchasing is at 5% which is payable as to 1% on preliminary agreement and 4% on the final deed of sale.
A concession of 3.5% on the first €150,000 is applied to Maltese citizens/passport holders, purchasing their first habitual home.
Approximately 1% of the purchase price is due as notaries fees payable upon deed.
Agency fees are payable by vendors.