Buying a House in Malta: Promise of Sale to Final Deed – The Complete Guide for International Buyers

Promise of Sale Malta: The First Big Step

The Promise of Sale is your entry into Malta’s real estate market—think of it as a very binding “preliminary agreement” with plenty of legal bite. Here, you commit to buying, the seller commits to selling, and both sides agree on concrete dates and conditions.

What exactly is a Promise of Sale?

A Promise of Sale (Maltese: Wegħedha ta Bejgħ) is a preliminary purchase agreement that’s legally binding. You pay a deposit—typically 10% of the purchase price—and set a date for the Final Deed, which usually takes place 6–12 months later. Why this wait? In Malta, construction often still needs finishing, permits need securing, or financing needs arranging.

The document is drawn up in English (thank goodness), but often contains some Maltese legal terms that can be confusing. Here are the key ones:

• Konvenju: This is the Promise of Sale itself
• Kaparra: The deposit, usually 10% of the purchase price
• Riċevuta: The receipt for your deposit
• Atti tal-Bejgħ: The Final Deed, the definitive sale contract

Which documents do you need for the Promise of Sale?

Before you even attend your first notary appointment, make sure you have these documents ready:

1. Valid passport or EU national ID card
2. Proof of funding (bank confirmation or loan approval)
3. Proof of Address (residency permit or utility bill from your home country)
4. Malta Tax Number (apply at the Inland Revenue Department in Floriana)
5. Power of Attorney (if you can’t attend in person)

Pro tip: You can apply for your Malta Tax Number online before your first trip to Malta. That saves you a trip to the authorities and speeds up the whole process considerably.

Common Pitfalls with the Promise of Sale – and How to Avoid Them

After two years in Malta and countless conversations with other buyers, I’ve identified the most common stumbling blocks:

This is especially true with off-plan purchases (when the property isn’t finished yet)—don’t be afraid to ask tough questions. I’ve seen buyers wait 18 months for their apartment because the developer only applied for planning permission after signing the Promise of Sale.

Between Promise of Sale and Final Deed: Making the Most of the Waiting Period

The months between signing the Promise of Sale and the Final Deed aren’t just dead time—quite the opposite. Now’s the time to get everything organized so your final closing goes smoothly. And trust me, in Malta, nothing ever runs entirely on its own.

Snagging and Quality Control for New-Builds

If you’ve bought a property that isn’t finished yet, this is when the exciting part begins—tracking construction. Malta’s standards for build quality are, let’s put it diplomatically, pretty relaxed. Some developers build well; others… less so.

What you should regularly check:

• Electrical systems: Are all connections installed properly?
• Plumbing: Is the water pressure and drainage OK?
• Windows and doors: Do they seal tightly? (Important during Maltese winter rains!)
• Balconies and terraces: Proper waterproofing against damp
• Communal areas: Pool, lift, entrance hall

Create a “snag list”—it’s a list of defects that must be fixed before the Final Deed. Some developers try to pass these costs onto the buyer—don’t let them!

Arranging Financing: Maltese Banks for Foreigners

If you’re not paying cash, you’ll need a mortgage from a Maltese bank. This can take a while. BOV (Bank of Valletta) and HSBC Malta are the two major players, but their processing times vary considerably.

What Maltese banks require from EU foreigners:

1. At least 25% equity (often 30–35%)
2. Proof of regular income (3 years of tax returns)
3. Malta tax number and local bank account
4. Property valuation report (costs about €500–800)
5. Local lawyer acting as your representative

Interest rates are currently 3.5–4.5% for EU citizens (as of 2024). German and Austrian buyers often get better terms than other EU nationalities—a perk of our reputation for creditworthiness.

Insurance Policies: What You Really Need

Building insurance is mandatory in Malta if you take out a mortgage. But even without a bank insisting on it, you should get covered—the Mediterranean climate can be harsher than it looks.

Recommended insurance policies for Malta property:

• Buildings Insurance: Covers storm, flood, earthquake
• Contents Insurance: For your belongings and personal property
• Public Liability: Third-party liability cover
• Water Damage Cover: Especially important for penthouses

Costs are around €300–600 annually for a €100,000 property, depending on location and features.

Final Deed Malta: The Notary Appointment Seals the Deal

The Final Deed day is the big moment—you finally get the keys! But first, you’ll have to go through Malta’s bureaucratic mill one more time. The notary has a much more prominent role than in Germany: he’s contract checker, escrow agent, and registrar all in one.

The Final Deed Appointment Process

The final notary appointment usually takes 45–90 minutes and follows a set routine:

1. Identity check for all parties
2. Reading of the Final Deed (the full document, even if it’s 20 pages)
3. Clarifying last details (meter readings, any remaining bills)
4. Payment of the balance (usually wired in advance)
5. Signatures by all parties
6. Handing over the keys and documents
7. Registration at the Land Registry (done by the notary)

Tip: Bring a Maltese lawyer with you—even if it’s not legally required. The €500–800 in legal fees could save you from lots of headaches later if any contract wording is unclear.

Costs and Fees at the Final Deed in Detail

This is where it gets expensive—fast. Additional costs for buying property in Malta can easily add up to 8–12% of the purchase price. Here’s a summary of the main items:

Sample calculation for a €400,000 property as a first home:

• Stamp Duty: €20,000 (5%)
• Notary fees: €3,000 (0.75%)
• Lawyer: €800
• Other fees: €1,200
• Total additional costs: €25,000

What Happens After Signing

Signature on the Final Deed makes you the official owner—but a few admin steps remain:

• Transfer electricity and water into your name (ARMS Malta, may take 2–3 weeks)
• Apply for internet connection (Epic, Melita or GO—all are about equally reliable)
• Activate home contents insurance
• Plan any renovations (don’t forget to check for building permits!)
• Register for property tax (due from the following year)

Most important: Your notary will provide a certified copy of the Final Deed. You’ll need this for all further dealings with the authorities, so guard it with your life.

Buying Property in Malta: Costs and Taxes for Foreigners

As an EU citizen, you have the same property rights in Malta as locals—but there are a few tax specifics you need to know. This is especially important if you plan to use the property as a holiday home or sell it later.

Stamp Duty: Malta’s Property Transfer Tax

Stamp Duty is your biggest expense when buying property. Malta distinguishes between first and second homes, and this difference can be costly:

• First residence in Malta: 5% Stamp Duty
• Second home or investment: 8% Stamp Duty
• Threshold for reduced Stamp Duty: €400,000 (applies only to first homes)

Important: A “first residence” only counts if you have never owned property in Malta, and if you use it as your main home. If you, as a German national, buy a holiday apartment in Sliema, you automatically pay 8% Stamp Duty—even if you’ve never owned property elsewhere.

Tax Specifics for EU Nationals

Malta has a fairly complex tax system, but in practice it’s mostly to your benefit:

Perhaps most interesting: Malta doesn’t levy any inheritance tax. If you later leave your Maltese property to your children, there are no taxes due—a big advantage over Germany.

Hidden Costs No One Talks About

Estate agents and developers love to talk about the purchase price and Stamp Duty—but there are other expenses that can eat into your budget:

• Administrative charges for new-build apartments: €500–2,000 for handover and initial registration
• Common Parts Maintenance Fund: €1,000–5,000 one-off for apartment blocks
• Building insurance for communal buildings: €200–600 per year on top of your own policy
• Management fees in resorts: €2,000–8,000 annually for pools, security, gardening
• MEPA development fees: €200–800 for significant renovations

For a €400,000 apartment purchase, expect around €35,000–45,000 in overheads during the first year—much more than the often-quoted “8–10%.”

Common Mistakes When Buying a Home in Malta: How to Save Your Nerves and Money

Over two years in Malta, I’ve helped plenty of Germans, Austrians, and Swiss buyers through their first property purchase. The same mistakes keep cropping up again and again—but they’re all avoidable if you know what to look out for.

Mistake #1: Not Allowing Enough Time for Due Diligence

Many buyers underestimate how long it takes to check a Maltese property. Unlike Germany, there isn’t a single central land registry and some information is only available via roundabout routes.

What you should check before the Promise of Sale:

• Planning permission for all construction work over the last 10 years
• Building regulation compliance certificate
• Structural survey for older properties (especially in Valletta and Mdina)
• Utility connections (electricity, water, internet available?)
• Community fees and upcoming special levies

Mistake #2: Organizing Financing Too Late

German buyers are used to having a mortgage approved in 2–3 weeks. In Malta, mortgages for foreigners usually take 6–12 weeks—that’s under ideal circumstances.

How to do it the right way:

1. Get a preliminary loan offer before you start your property search
2. Apply for a Malta tax number and local bank account early
3. Translate all proof of income into English
4. Have a Plan B: check if German banks will finance Malta property

Mistake #3: Ignoring “Location, Location, Location”

Malta is small, but the differences between regions are huge. What costs €500,000 in Sliema might only cost €250,000 in Marsaxlokk—but life in each area is totally different.

A realistic look at the most popular areas:

Mistake #4: Underestimating Malta’s Climate

Malta in May is paradise. Malta in August can be a nightmare if your property isn’t equipped for it. Watch out for the following:

• Air conditioning in every room (not just the living room)
• Double glazing to combat the summer heat
• External shutters or blinds (essential for bedrooms)
• Pay attention to balcony orientation (south-facing means unusable after 11am)
• Check water pressure (sometimes a problem in upper floors)

Checklist: Your Roadmap to a Maltese Dream Home

After all these details, here’s your compact road map for buying property in Malta. Print this checklist and tick off every point—so you won’t forget a thing.

Phase 1: Preparation (4–8 weeks before viewing)

• □ Set your budget (including 12–15% additional costs)
• □ Apply for Malta tax number online
• □ Have income statements translated into English
• □ Get a preliminary loan offer from a Maltese bank
• □ Contact a Maltese lawyer and get a quote
• □ Take out travel insurance with “property purchase” rider

Phase 2: Property Search and Viewing (2–4 weeks)

• □ Visit different areas at various times of day
• □ Request planning permissions for your shortlisted properties from the agent
• □ Commission a structural survey for older buildings
• □ Check community fees and special levies
• □ Test internet availability and speed on site
• □ Check the parking situation (especially in Valletta/Sliema)

Phase 3: Promise of Sale (1–2 weeks)

• □ Go through all contract clauses with your lawyer
• □ Negotiate a realistic completion date (allow for leeway)
• □ Arrange penalty clauses for seller delays
• □ Define snag list for new builds
• □ Pay 10% down payment by bank transfer (not cash!)
• □ Keep the receipt and contract copy safe

Phase 4: Waiting Period between Promise of Sale and Final Deed (6–12 months)

• □ Submit mortgage application to bank
• □ Commission a property valuation
• □ Take out building and home contents insurance
• □ For new builds: monitor construction progress monthly
• □ For older homes: check all renovation permits
• □ Transfer remaining funds for Final Deed to escrow

Phase 5: Final Deed and Handover (1 day)

• □ Bring all required documents to the notary appointment
• □ Read through the Final Deed in full (no matter how long it takes)
• □ Note meter readings for electricity and water
• □ Collect all keys and access codes
• □ Take certified copy of the Final Deed from the notary
• □ Register change of ownership with ARMS Malta

Phase 6: After the Purchase (first 6 months)

• □ Have electricity and water transferred to your name
• □ Apply for an internet connection (GO, Epic or Melita)
• □ Register for property tax for the following year
• □ Apply for building permit for renovations, if needed
• □ Contact community administrator or building manager
• □ Get to know your neighbors (always helps with practical questions)

Frequently Asked Questions about Buying Property in Malta

Can Germans buy property in Malta without being residents?

Yes, as an EU citizen you can purchase property in Malta without any restrictions. All you need is a Maltese tax number, which you must apply for before the purchase.

How long does the whole process from Promise of Sale to handover take?

Usually 6–12 months. For off-plan properties it can be 18–24 months, depending on construction progress and permits.

What additional costs should I expect when buying a property in Malta?

Budget for 10–15% of the purchase price: 5–8% stamp duty, 0.5–1% notary fees, plus lawyer, valuation and various administrative fees.

Do I really need a Maltese lawyer for buying property?

Legally, no, but it’s strongly recommended. A local lawyer costs €500–1,500, but can save you expensive mistakes and speed up the whole process.

Can I use my German bank to finance property in Malta?

Some German banks do finance Maltese property, but usually only for clients with very good credit and a high equity contribution. Maltese banks are often more flexible.

What happens if the seller can’t keep the Final Deed appointment?

That’s why you should insist on penalty clauses in the Promise of Sale. Without them, your legal remedies are limited and you may have to sue for damages.

Are there any taxes due in Malta when selling property?

Yes, capital gains tax of 8% on the profit, if you sell within three years. For longer holding periods, there are allowances and indexation options.

What are the ongoing costs for owning a property in Malta?

Building insurance (€300–600/year), possible community fees (€1,000–5,000/year), and maintenance for communal facilities.

Can I rent out my Malta property if I’m not there?

Yes, but you need an STR license for short-term rentals or you must declare rental income as standard. A local property manager is practically a must.

What if defects are discovered after my purchase?

That’s why the snag list at the Promise of Sale stage is so important. Defects should be listed and fixed before the Final Deed. Afterwards, it’s much more difficult to get them addressed.