Malta is a Hot, Stunning Island Market in Europe—Here’s How to Invest There

In This Article

While golden visas are sunsetting or significantly changing around Europe, there are still a few opportunities for Americans to buy international real estate, to live in or rent out, at very favorable rates. 

One country you may not have thought about—but still fits the bill—is Malta, an island nation that sits in the middle of the Mediterranean Sea, south of Italy and just off the coast of Africa.

There are many reasons to consider this European country for investment. To name a few:

• Gorgeous warm, year-round weather.
• A very low cost of living.
• Reasonable taxes.
• A stable government.
• Access to the European Union (EU).
• A bustling tourism industry.

How to Buy Property in Malta

Americans first need something called an Acquisition of Immovable Property (AIP) permit. This costs around $250 and usually takes a little over a month to get.

If you’re looking to purchase an investment property in order to rent it out, your property needs to be valued over €233,000 ($255,000 in U.S. dollars), it must have a swimming pool, and it must be registered with the Hotel and Catering Establishments Board. There are also some restrictions in terms of how long you can rent it for.

These are assets located in predetermined luxury areas of Malta, many of which are in prime locations, complete with porters, reception areas, pools, etc. If you buy in one of these sections, you don’t need an AIP, and there are no rental restrictions. As an owner of property in a special designated area (SDA), you also inherit many of the same rights as a Maltese citizen, which is a key benefit.

Become an Official Malta Resident With Your Investment

Like other “golden passport” programs in Europe, there is a path to Malta citizenship and, therefore, EU citizenship via real estate. You can rent or buy, and your kids and spouse can also claim residency with the same investment.

The investment

• Rent a property between €10,000-12,000 /year ($10,800 to $13,000)
• Buy a property between €300,000-350,000 ($325,000-$379,000)

Government fees

• €28,000 ($30,000) if you’re buying; €58,000 ($62,000)if you’re leasing

Charitable donation

• At least €2,000 ($2,100) to a local, sanctioned NGO charity

Fees to consider

• Taxes: There’s usually a 5% “stamp tax” during the course of the transaction.
• Notary: 1% to 3% of purchase price
• AIP: Around $250
• Registration and title searches: Around $1,000

Final Thoughts

While international investment deals around mainland Europe may be disappearing, Malta is still open for international investment. Note that Malta, too, may sunset these opportunities after a few years. Don’t wait if it’s something you want to pursue!

Note By BiggerPockets: These are opinions written by the author and do not necessarily represent the opinions of BiggerPockets.