Finding Property in Malta: The Complete Guide for International Rental and Purchase – Property Guide

Understanding Maltas Real Estate Market: Prices, Trends, and Facts

Malta’s real estate market proves that not all EU is the same. British quirks meet Mediterranean ease, EU law contrasts with local traditions. The result? A market that plays by its own rules.

Current Prices and Market Development in 2025

The numbers up front, so you know what to expect. Average purchase prices:

Rental ranges (per month):

• Central 1-bedroom apartment: €800 – €1,400
• Central 2-bedroom apartment: €1,200 – €2,200
• Central 3-bedroom apartment: €1,800 – €3,500
• Room in shared flat: €350 – €650
• Studio outside city: €500 – €900

What’s driving the prices?

Three factors shape Maltas property scene: the gaming industry, EU tax exiles, and the scarcity of building land. Malta has 316 square kilometers – smaller than Munich. Every square meter counts.

The gaming industry has been paying above-average salaries for years. Senior developers easily earn €50,000+ and can pay top rents. Add to this wealthy Europeans who use Malta for tax residency. This especially pushes up luxury segments.

Malta’s System Peculiarities

Malta has a dual legal system: Maltese law (based on the Code Napoléon) plus common law influences. Relevant for you:

• Emphyteusis: You don’t buy the land but get a 99-year right of use (common with new developments)
• Freehold: Full unrestricted ownership including the land (rarer, more expensive)
• Promise of Sale: Preliminary contract with deposit (legally binding!)
• Final Deed: The actual purchase contract signed at the notary

You’ll hear these terms everywhere. If you don’t understand them, you sign blindly. That’s risky.

Renting an Apartment in Malta: The Complete Process for Internationals

Renting in Malta is theoretically simple: find a place, sign, move in. In reality, it’s a hurdle race involving landlord quirks, WhatsApp chaos, and three-language deposit negotiations.

Where Should Internationals Search?

Forget German property portals. In Malta, everything runs through:

1. Facebook Groups: “Malta Property Market”, “Rent in Malta”, “Flatmates Malta” – the real action is here
2. Property.com.mt: Local portal with the most listings
3. Times of Malta Classifieds: Traditional but comprehensive
4. Dhalia.com.mt: Especially for luxury properties
5. Frank Salt Real Estate: The island’s largest agency

Facebook groups are worth their weight in gold. Landlords post directly here, no agency markup. But beware: scammers are around, too.

The Maltese Rental Process Step by Step

Step 1: Arrange a viewing

Maltese rarely reply to emails. WhatsApp rules. Keep it short, polite, in English. “Hi, I’m interested in viewing the apartment in [Location]. When would suit you?” Nothing more.

Step 2: Survive the viewing

Take a phone charger to the viewing. Testing internet and sockets is more important than the oven. Ask about utilities – often not included and can be €150+ a month.

Step 3: Negotiate the contract

Now it gets interesting. Maltese rental contracts are often… creative. Standard pitfalls:

• Deposit: 1-2 months rent, cash in hand (yes, really)
• Agent commission: Half a month’s rent (negotiable)
• Utilities: Water & electricity often billed separately
• Internet: Rarely included, rarely good
• Termination: Usually 1-2 months notice

Step 4: Collect documents

You’ll need: passport/ID, proof of income (bank statement is enough), sometimes employer reference. EU citizens have advantages – use them.

Your Rights and Duties as a Tenant

Maltese tenancy law is more tenant-friendly than you’d think. Key points:

Understanding Extra Costs: What Else to Expect?

The nasty surprise often comes in the first month. Service charges in Malta:

• Electricity: 20-25 cents/kWh (more expensive than Germany!)
• Water: €3-4/m³ plus basic charge
• Internet: €25-40/month for decent speeds
• Gas: If available, about €15-25/month
• Local taxes: Often covered by landlord

Budget €100-200 extra per month for utilities. In summer, the electricity bill goes through the roof due to AC.

Buying Property in Malta: What You Need to Know as a Foreigner

Buying real estate in Malta as an EU citizen is possible, but complex. There are rules, exceptions, special provisions and then Maltese interpretations. Here’s the truth:

Legal Frameworks for EU Citizens

As an EU citizen, you may buy property in Malta. But: there are restrictions and approval procedures.

Free purchase possible:

• Apartments in multi-family buildings
• Used properties (older than 5 years)
• Commercial properties
• Garages and storage rooms

Approval required (AIP – Acquisition of Immovable Property):

• New builds (less than 5 years old)
• Houses with land over 1,000 m²
• Properties in special zones
• Second homes

The AIP Process: Approval for Buying Property

The AIP (Acquisition of Immovable Property Unit) decides on your purchase application. This takes 6-12 weeks and costs €150 in admin fees.

Required documents:

1. Completed AIP form
2. Copy of Promise of Sale agreement
3. Land registry extract of the property
4. ID/Passport
5. Proof of financing
6. Reason for purchase (main residence/investment/holiday home)

Approval is almost always granted, except for security-sensitive areas or building regulation violations.

Purchase process: From Promise of Sale to Final Deed

Property purchase in Malta has two stages:

Stage 1: Promise of Sale Agreement

You pay a 10% deposit and sign the preliminary contract. This is legally binding! If you pull out, you lose the deposit; if the vendor pulls out, you get double back.

Stage 2: Final Deed (sales contract)

The definitive contract is signed at the notary. You pay the balance plus:

• Stamp Duty (purchase tax): 5% of the purchase price
• Notary fees: 0.1-0.2% of the price
• Legal fees: €1,000-3,000
• Land registry fees: €200-500

Financing for International Buyers

Maltese banks give loans to EU nationals, but with stricter conditions than for locals:

Requirements: Fixed income in Malta or EU, credit check, proof of funds for down payment plus buying expenses.

Tax Aspects of Purchasing Property

Malta’s tax rules are complex. Key points:

• No wealth tax on properties
• Rental income: Taxed under Maltese income tax law
• Capital gains tax: 12% on sale
• Inheritance tax: Tax-free between spouses, otherwise 5-35%

Definitely get a Maltese tax consultant. Rules change frequently and have exceptions for EU nationals.

The Best Areas in Malta: From Sliema to Gozo

Malta is small, but the difference between neighbourhoods is huge. Ten minutes by car separate a luxury marina from a sleepy fishing village. Here’s where to find what:

Sliema & St. Julians: The Cosmopolitan Centre

Sliema is Malta’s Manhattan – if Manhattan were 2 kilometres long and had Gelato stands. Most internationals live here.

Pros:

• Everything walkable: supermarkets, restaurants, sea
• Best public transport links
• International community and events
• Modern apartments with sea views
• Shops open 24/7

Cons:

• Highest rents on the island
• Tourist hordes in summer
• Few parking spots
• Noisy due to construction and traffic

Perfect for: Anna (digital nomad) who wants everything close by, and Luca (UX designer) who needs international contacts.

St. Julians is right next to Sliema, but more party-focused. Paceville (the clubbing area) can turn into hell at night – the closer you are, the cheaper and louder the flat.

Valletta: Cultural Heart with Character

Malta’s capital is a UNESCO World Heritage Site and looks like an open-air museum. Living here is special.

Living in Valletta means:

• Staying in 400-500-year-old buildings
• Stone streets (bad for rolling suitcases)
• Small but characterful apartments
• Many cafés and cultural events
• Car-free zones

Prices are 20-30% below Sliema levels, but you must love historical charm. Heating and modern comforts are not guaranteed.

Gzira & Msida: The Insider Tip for Pragmatists

These two places are between Sliema and Valletta – ideal for those who want central but not hectic living.

Gzira:

• 10 minutes’ walk to Sliema
• Rents 20-25% cheaper than Sliema
• Local supermarkets and restaurants
• Residential vibe

Msida:

• Close to university (great for shared flats)
• Yacht marina and promenade
• Good bus connections
• Mix of students and working people

Attard, Balzan & Lija: The Three Villages

If you want calm and don’t need the office daily, the “Three Villages” are ideal. Malta’s middle class lives here.

Features:

• Houses with gardens instead of apartments
• Family-friendly and quiet
• 15-20 minutes by car to Sliema
• Local shops and traditional restaurants
• Much lower prices

Perfect for Dr. Mara (retired doctor), who looks for peace and quality.

Gozo: The Little Sister with Big Charm

Gozo is a separate island – 25 minutes by ferry from Malta. Slower, greener, more relaxed.

Life on Gozo:

• Dramatically lower prices (50-60% of Malta)
• Nature, peace and authentic Malta
• Car is essential
• Limited jobs
• Power cuts more common than on the mainland

A paradise for remote workers, a nightmare for commuters.

Price Comparison by Area (2-bedroom apartment, rent)

Practical Tips: Viewings, Contracts, and Pitfalls

Theory is one thing, practice is another. After three years and dozens of viewings, I know every trick, every pitfall and every landlord type. Here’s my hard-won reality check:

Viewings: What Really Matters

The 10-Point Checklist for Every Viewing:

1. Test water pressure: Turn on all taps, even simultaneously
2. Check internet speed: Use a speed test app
3. Test AC: Does it work? How old is it? Who pays for repairs?
4. Count sockets: Maltese have a unique approach to sockets
5. Check phone signal: Stone walls block everything
6. Observe neighbours: Noisy? Lots of kids? Construction next door?
7. Test elevator: If there is one – Maltese elevators are… vintage
8. Check balcony/terrace: Privacy? Noise from the street?
9. Washer connection: Not every apartment has one
10. Inspect parking spot: Is it really included? Accessible?

Understanding Contracts: The Most Common Pitfalls

Maltese rental contracts are often… creatively interpreted. Here are the classics:

Pitfall 1: “Utilities excluded”

Means you pay electricity, water, internet separately. That can easily add €150-250 per month. Always ask: What exactly is included in the rent?

Pitfall 2: “Furnished apartment”

Can mean: a bed, a table, a chair. Or: fully equipped down to the coffee machine. Get a list or take photos at the viewing.

Pitfall 3: “One month deposit”

Plus one month’s rent up front plus agency fee. Your €1,200 rent quickly turns into €3,000 starting costs.

Pitfall 4: “No pets, no parties, no…”

The no-list can be endless. Overnight guests? Cooking with garlic? Netflix in another language? I’ve seen it all.

Negotiating: How to Get a Better Deal

Maltese love to negotiate – if you know how:

Use timing:

• October-January: Off-season, less competition
• View during weekdays: Landlords have more time
• Offer longer lease: 12+ months for a better rate

Gather arguments:

• Im a quiet professional with stable income
• I can provide references from previous landlords
• Im looking for a long-term home, not just temporary
• I can pay deposit and first month immediately

What DOESNT work:

• German directness (The price is too high)
• Know-it-all statements (In Germany we do it like this…)
• Impatience (I need an answer today)

Red Flags: Landlords to Avoid

Some landlords are a waste of time, or worse. Warning signs:

Instant no:

• Wants money before viewing
• No fixed address in Malta
• Contract only available in Maltese
• Suspiciously cheap for the area
• Insists on immediate signature

Time to get suspicious:

• Cannot provide ownership papers
• Wants only cash payments
• No agreements in writing
• Evasive about utilities
• Overly friendly, promises everything

Legal Security: What You Need in Writing

Malta is in the EU, but trust is good, documentation is better:

• Written rental contract: In English, with all details
• Inventory list: All furniture and appliances listed
• Deposit receipt: Receipt for deposit paid
• Landlord ID: Copy of landlord’s ID
• Property documents: Proof of ownership
• Utility accounts: Clear who pays what

If you don’t have these documents – don’t sign. Period.

Costs and Financing: Budget Planning for Malta

Malta isn’t cheap. Anyone claiming otherwise is selling you something or hasn’t been here since 2015. But with smart planning, it’s affordable. Here are the real numbers:

Total Costs when Renting: What to Expect

Start-up costs (one-off):

Example calculation for €1,500 rent:

• Deposit: €3,000
• First rent: €1,500
• Agency: €750
• Setup: €500
• Total: €5,750 to start

Monthly Costs: The Malta Budget Reality Check

Single household, central location (Gzira/Msida):

• 1-bed rent: €1,000-1,400
• Electricity/water: €80-150 (winter) / €150-250 (summer)
• Internet: €30-45
• Groceries: €300-500
• Transport: €50 (bus) / €300 (car incl. fuel)
• Mobile: €20-40
• Total: €1,480-2,385

Couple, central location (Sliema):

• 2-bed rent: €1,800-2,500
• Electricity/water: €120-200 (winter) / €200-350 (summer)
• Internet: €35-50
• Groceries: €500-800
• Transport: €100 (both bus) / €400 (one car)
• Mobiles: €40-80
• Total: €2,595-4,180

Hidden Costs: The Unexpected

The nasty surprises always come:

• Summer power shock: AC can triple your electricity bill
• Import fees: Online shopping from Germany costs extra
• Car costs: Insurance €800-1,500/year, registration €200
• Repairs: Tradesmen are expensive and slow
• Trips home: Flights to Germany €150-400 depending on the season

Financing When Buying a Property: Banks and Terms

Maltese banks are more conservative than German ones. Here are the current terms from leading banks:

Bank of Valletta (Malta’s largest bank):

• Maximum financing: 80% of sale price
• Minimum down payment: 20% plus expenses
• Interest: 3.5-4.2% (depends on term & creditworthiness)
• Max duration: 25 years
• Processing fee: 0.5% of loan amount

HSBC Malta:

• Maximum financing: 75% of purchase price
• Minimum down payment: 25% plus expenses
• Interest: 3.8-4.5%
• Special: Discounts for existing customers

Requirements for non-residents:

• Proof of stable income (36 months)
• Debt-to-income ratio max. 40%
• Credit report or equivalent
• Proof of liquid assets
• Sometimes: Guarantor or extra security

Property Purchase Cost Example: €300,000 Apartment

So you’ll need about one-sixth of the purchase price as cash equity.

Saving Tips: How to Cut Costs

For rent:

• Long-term contracts for better rates
• Neighbouring areas instead of Sliema/St. Julians
• Shared flats instead of your own apartment
• Winter move-in for negotiation leverage

On utilities:

• Smart thermostat for AC
• LED lighting everywhere
• Water-saving shower heads
• Prepaid electricity to control costs

When shopping:

• Local markets over supermarkets
• Buy seasonal produce
• Bulk items for staples
• Use restaurant happy hours

Frequently Asked Questions about Real Estate in Malta

Do I need a permit to buy property in Malta as an EU national?

For used properties (older than 5 years) and apartments, no. For new builds, houses with much land or second homes, you’ll need AIP approval – which is almost always granted.

What are the extra costs when buying property?

Expect to pay an extra 5-8% on top of the sale price: 5% stamp duty, plus notary, legal and land registry fees.

Can I get a mortgage as a German national in Malta?

Yes, Maltese banks grant loans to EU citizens. But you’ll need more cash up front (20-30%) and pay higher interest than locals.

How do I find a rental as a foreigner?

Facebook groups (“Malta Property Market”), Property.com.mt and local agencies. WhatsApp is more important than email for contacts.

What’s the average cost of utility bills in a rented apartment?

€100-250 per month extra on top of the rent: electricity (20-25 cents/kWh), water (€3-4/m³), internet (€25-40). In summer, AC drives the power bill up.

Do I have to pay tax on rental income?

Yes, rental income is taxed according to Maltese income tax law. There are certain rules for EU nationals.

How long does the buying process take?

2-6 months from Promise of Sale to Final Deed. With AIP approval, add 6-12 weeks more.

Are real estate prices in Malta still rising?

Yes, but slower than 2015-2020. Central locations remain expensive; outlying areas still have potential.

Which is better: Rent or buy in Malta?

Depends on your length of stay. Under 5 years, usually rent. Over that, buying can make sense. Don’t forget high buying costs.

What’s the best area for international renters?

Gzira and Msida have the best value: central, but cheaper than Sliema. Sliema itself is premium but pricey.