Can Foreigners Buy Property in Malta? AIP Permits and Special Designated Areas

Yes, foreigners can buy property in Malta, but most non-residents need a government permit first, and the type of property you can buy depends entirely on where it sits. The rule that governs everything is the Immovable Property (Acquisition by Non-Residents) Act, Chapter 246 of the Laws of Malta, in force since 1974. Locals call the permit it requires the AIP permit, and whether you need one is the first question to settle before you fall in love with a sea-view apartment in Sliema.

Who counts as a non-resident

The Act's definition of a non-resident is broader than people expect. It covers third-country nationals, meaning anyone who is not a citizen of an EU member state. It also covers EU and Maltese citizens who have not lived in Malta continuously for at least five years before the purchase. So an EU citizen relocating to Malta for the first time is, for AIP purposes, in the same position as an American or a Gulf buyer: they need a permit to buy outside the designated zones. Only EU citizens with five years of continuous Maltese residence, and certain long-term residents, fall outside the permit requirement.

The AIP permit and its limits

If you need an AIP permit, the application goes to the Ministry responsible for finance, and the fee is modest, set at €232.94. The permit itself, though, comes with restrictions that shape what you are actually buying. A non-resident holding an AIP permit may acquire only one property in Malta. And the property may not be rented out under any circumstances. That second restriction is the one that derails investors. If your plan was to buy a Maltese flat and let it to tourists or long-term tenants, an ordinary AIP-permit purchase forbids it outright.

There are also minimum values. Under the price thresholds set by Legal Notice 174/2024, a non-resident buying under the AIP regime must pay at least €174,274 for a flat or maisonette and at least €300,619 for any other type of property, such as a house or villa. These figures are indexed and move over time, so confirm the current minimum before budgeting.

Special Designated Areas change the rules entirely

The workaround built into the law is the Special Designated Area, or SDA. The First Schedule of Chapter 246 lists specific zones across Malta and Gozo, eighteen in total, where the AIP regime essentially does not bite. Inside an SDA, a foreign buyer is treated like a Maltese national: no AIP permit is required, you may own more than one property, and crucially you may rent the property out. The big restrictions of the standard regime simply fall away.