Limitations to Foreigners

1. Are there in your national system any limitations to foreigner citizens or foreign companies/companies controlled by foreign citizens regarding the acquisition of immovable properties? If yes:

1.1. Which legal regulations regulate in your country the prohibitions or limitations for foreigners’ acquisitions in case of transfer of property? Please specify the legal regulation and/or the range of the regulation that contains the prohibition.

Chapter 246 of the Laws of Malta.

1.2. What do these limitations consist of?

Citizens of all European Union member states, including therefore Maltese Citizens, who have resided in Malta continuously for a minimum period of five years at any time preceding the date of acquisition may freely acquire immovable property without the necessity of obtaining a permit under Chapter 246 of the Laws of Malta.

Citizens of all European Union member states, including therefore Maltese Citizens, who have not resided continuously in Malta for a minimum period of five years will not require a permit under Chapter 246 of the Laws of Malta when purchasing their primary residence or immovable property required for their business activities or supply of services.

Citizens of all European Union member states, including therefore Maltese Citizens, who have not resided continuously in Malta for a minimum period of five years, require a permit under Chapter 246 of the Laws of Malta to acquire immovable property for secondary residence purposes.

Individuals who are not citizens of a European Member state may not acquire any immovable property unless they are granted a permit in terms of Chapter 246 of the Laws of Malta.

There are defined zones in Mata, referred to as Special Designated Areas (SDA), where there are absolutely no restrictions to acquisition. Thus, individuals may purchase their second property in an SDA without the need to apply for a permit under Chapter 246 of the Laws of Malta.
There is also no restriction on acquisition through inheritance and there are also several other special exemptions available to individuals. Different rules apply to the acquisition by bodies of persons.

1.3. Do these limitations apply to any foreign citizen, regardless their nationality, or only to non-EU Members national citizens?

Explanation in 1a.

1.4. Do these limitations have?

Probably the main reason is an economic one.

• A defensive/protective purpose
• «An economic purpose»
• Both economic and defensive/protective purposes
• Other purposes (please specify)

2. To which kind of land registry unit do these limitations apply? (Example: only land plots, only rural areas, only foreign borders, dwellings and homes, other buildings?

They may apply to any but as explained above Special Designated Areas are open to all buyers. Special Designated Areas usually refer to Lifestyle Developments.

3. To which kind of transfers or burdens do these limitations apply? (Example: to every transfer, non-free transfers, differently in case of inheritance than in case of purchase, mortgages in favor of foreigners….)

In the case of inheritance, as explained above, there are no restrictions.

4. Apart from the previous limitation to acquisition of property by foreigners, are there any other measures at your country relevant for this topic? (Example: pre-emption rights in case of purchase un favor of a foreigner, social or residential measures bases on nationality and non in residential permits….)

The answer is practically in 1a.

5. To what extent the land registrars’ controls in a deed of transfer the prohibitions imposed to foreigners to acquire land and buildings in your country?

The Land Registrar analyses that the legal basis for the application is submitted, be it a contract or any other legal document, but does not enter into the merit of prohibitions imposed to foreigners as this would have already been checked before by notaries etc.

5.1. Do you only check if the transfer administrative authorization requirement is met, or do you also confirm that the authorization is valid? For example, do you consider property type, like rural or forestry classification, which might limit foreign transfers? Or do you verify the percentage of foreign land ownership in a specific area, especially if there are restrictions on the number of buyers or land size?

The Land Registrar analyses that legal basis for the application is submitted, be it a contract or any other legal document, but does not enter into the merit of prohibitions imposed to foreigners as this would have already been checked before by notaries etc.

5.2. What would happen if an authorization were needed, and it does not come with the title submitted for registration?

Authorisations are not generally submitted with applications.

5.3. What would happen in case a deed of inheritance in favor of a foreigner transfers property over land or buildings subject to limitations for foreigners’ acquisitions in your country?

Same reply as for question 1, applies.

5.4. If the states have preemption right in case of transfer, would you reject the registration if no notification to the state to enhanced it right is done?

We would not be informed specifically of preemption rights.

6. Do you expect any legal modifications on this issue?

Not at the moment.