The real estate market in Malta continues to thrive, attracting both locals and international buyers seeking residential and investment opportunities. Yet, navigating the legal landscape can be complex. At BENESTATES, our team recently attended a seminar hosted by WH Partners, focusing on key legal, tax, and regulatory insights crucial for anyone considering a property purchase in Malta.
- Navigating the Promise of Sale (POS)
A Promise of Sale Agreement is an essential step in securing your property. It includes critical details such as the agreed price, deposit, warranties against latent defects, and specific timelines. To ensure your interests are protected, it is vital that a POS is registered by a notary within 21 days of signing.
- Deposits and Your Financial Commitment
Typically, buyers commit a deposit (commonly around 10% of the property’s price) to secure the transaction. Understanding the distinction between a deposit and earnest money (Kappara) is key, as each serves a distinct legal purpose.
A deposit strongly binds both parties to the sale, whereas earnest money signifies serious interest but with conditions for withdrawal.
Understanding Stamp Duty and Tax Benefits
Stamp duty generally applies at 5% of the property’s value. However, Malta offers favourable rates and exemptions, particularly for first-time buyers or properties situated in Urban Conservation Areas (UCAs).
Protecting Your Interests
Conducting thorough due diligence to confirm clear property titles, proper permits, and compliance with local laws is vital. Buyers must remain vigilant and it is essential to ensure your rights are protected, and knowing your legal remedies in case of disputes is equally important.
Strategic Guidance from BENESTATES
At BENESTATES, our expert team of agents support our clients through every step of the POS process, providing clarity and facilitating connections with trusted legal experts.
Contact BENESTATES today for personalised property advice and introductions to trusted legal professionals.
Note: This blog provides general insights into Maltese real estate law and is intended for informational purposes only. BENESTATES does not offer formal legal advice. We are dedicated to connecting you with qualified legal advisors to support your real estate decisions effectively.
