Here is a list of the expenses you will encounter when buying your new property in Malta.
The fee for the Acquisition of Immovable Property Permit is €233, payable when the permit is issued.
The price of the deposit is usually 10% of the purchasing price and payable when the Konvenju (Preliminary Agreement) is signed. The deposit is a common proof of goodwill on the purchaser’s part and shows the seller that you can be trusted.
The stamp duty is as follows: 3.5% on the first €150,000 of the immovable property contract price (applicable to the purchase of a place of residence), and 5% on any amount over €150,000 of the immovable property contract price or on the full price, in case the above concession is not applicable.
Equivalent to one year’s ground rent, this fee is due on immovable property subject to ground rent when the contract of sale is signed.
Notaries in Malta are publicly appointed officials usually chosen by the buyer and responsible for conducting all the necessary due diligence to make sure there are no issues with the property or the contract.
The notary fee is usually 1% of the purchase price, although this fee may vary if the property title requires deeper research.
Make sure to know beforehand who is to pay the agency fees: you or the seller. Basically, there is no clear rule and this is a matter of confusion in the real estate world - however, a general rule is, the seller pays 5% commission to the agent. Some people might say that if the seller pays the commission the agent will work in his favour, and vice and versa so the fee is sometimes paid by both parties. Make sure you ask the agent about it, and be careful what you sign.