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How to Transfer Money To Malta To Purchase A Property

How To Transfer Money To Malta To Purchase A Property

The idyllic island of Malta is nestled in the Mediterranean just 80km’s from Italy. Its estimated that 10,000 Brits now call Malta home with 8000 of these believed to be retired. Many English speakers find the transition to Malta easy with the prominent language being English and surroundings be extremely familiar. Driving takes place on the left and much of the architecture and major towns will appear very familiar to anyone who has visited the UK, just with slightly more sun!

Malta became a British colony in 1813 providing a head quarter for the British naval fleet. The British parliament passed an independence act in 1964 with Queen Elizabeth II being made head of state.

What is the best place for you to purchase?

The Maltese property market enjoys a fairly buoyant property market with a diverse selection of properties available. These range from modest and manageable apartments to vast country homes outside of the cities and towns. One of the benefits of living on an island with area of just over 300km’s is that everything is accessible.

Popular with Expats

Sliema is a mix of suburban residential property and business areas. It boasts a long promenade facing the Marsamxett Harbour and the Valletta skyline.

St Julian’s which Is situated between Sliema and Paceville with all being considered some of the most urban of the villages in Malta. All three villages are connected via the promenade and offer good levels of nightlife and entertainment.

The villages are very popular with students and tourists and have good bus transport links including, buses, water taxi’s and car taxis. Paceville also enjoys a small man-made sandy beach.

Other popular expat locations include St. Paul’s BayQawra and Mellieha. Situated in the north of the island the villages offer expansive beaches. They prove popular amongst holiday makers, retirees and younger families. Many might be put off by the increased summer populations and quite low seasons when many shops shut.

Valetta the capital is for the most part pedestrianised and is littered with bars, restaurants, cinema’s museums and galleries. The city can be very quiet at night and very few expat families opt to live in the capital.

Property prices in Malta

Property prices in Malta are seeing a sharp rise with prices in Q1 2019 increasing by 10.83%. Price rises over the last five years have largely been supported by low interest rates, increasing numbers of foreign workers and disposable income.

First time buyers are also exempt from the 3.5% stamp duty which has seen many take the plunge and get on the property ladder.

Typical property prices per square meter range from €2,210 to €3,497 for property outside and inside the capital. Comparing well to property prices on other locations.

Rentals compared to many European areas remain reasonable with 3 bed apartments typically ranging from €1,170 to €1,551.

 

Getting your currency transfer account in place

The currency of Malta is the euro so anybody who is looking to live there will require currency services. Whilst banks can assist with this process, they lack the agility and rarely offer competitive pricing compared to a specialist broker. Once a price is negotiated and a preliminary contract signed ‘ Konvenju’ a sum will need to be paid to cover stamp duty. This typically ranges from 1% to 5% and needs to be paid promptly.

Those seeking a mortgage can apply before the completion and negotiate or add any other contingencies. Once all of the these are fulfilled by the acting notaries a final payment will need to be made to complete on the property.

An expert can begin to plan your money transfer to Malta with you and discussed a multitude of options in order for you to maximise your local currency and receive the most amount of euros possible.

Typically, very little paperwork will be required to open a currency transfer account. For the most part accounts can be opened following a simple address check (available in UK). If however you are located overseas the following might be requested.

  • Valid form of photo ID (passport or Driver license)
  • Utility bill or bank statement ( Gas, electric or water – must be a max of 3 months old)

Long after your Maltese property purchase is complete they will be able to assist with ongoing ad-hoc or regular payments.

Arranging for your belongings to be sent to Malta

If you are renting a home in Malta you will probably find that it will come fully furnished. If this isn’t the case and you are renting a modest apartment the costs of sending belongings to Malta could outweigh the costs of furnishing the apartment simply. However, if you are buying a number of companies run removal truck to Malta and can offer a packing and unboxing services if required.

Before committing to a company its worth ensuring they have the appropriate insurances and vehicles.

Opening a Bank account in Malta

Any outstanding funds in your currency transfer account will need to be sent to Malta. In order to send the remaining you will need to open a bank account. HSBC are prominent on the island, however other popular banks include Banif bank and Bank of Valletta.

In order to open an account, you will require the following

  • Valid form of photo ID (passport and eResidence card)
  • Proof of address ( eResidence card or ID card etc)
  • A minimum of €50 to credit the account

 

Health insurance is a requirement

Those relocating from outside the European Union will need to invest in health insurance if they are wishing to live in Malta. If they move to the island with their family they will also have to be covered by the policy. Those who are applying for residence via the Maltese golden visa will need to purchase insurance as part of their application.

 

Enjoy the expatriate community

Whether your mother tongue is English or Italian making friends will be easy as the island enjoys a huge expat social scene. The community is by and large extremely friendly and can help with any of the unforeseen issues you could encounter in the first few months of life in Malta.

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