Legal and other factors about residency in Malta and UK

dont buy until you have lived there for at least 6-12 months  = be sure its where you want to live.. location neighbours servcies etc.. these things change...

rent first - as rents are quite cheap

Apart from the advice - DO NOT BUY (for many reasons, some stated above) you need to be aware of the following: If you are using the property as your primary residence and residing on Malta, then there are no hindrances. If however, you are going to buy a holiday home or a property which is not your only residence then the following applies The minimum price to be paid is: € 103,906 for the purchase of a flat or maisonette; € 173,129 for the purchase of any other immovable property.
Seriously, I'd take legal advice on this and I, like a lot of others would advise you contact John Huber & Associates.

See: http://www.ird.gov.mt/aip/currentconditions.aspx and  http://www.ird.gov.mt/aip/faqs.aspx

I first thought that as a UK (EU) resident I would be required to buy at above €104,000 but I have been assured by two estate agents and one referred to her notary that this is not the case if it is my primary residence. To quote:

Since you are an EU citizen you are treated exactly like the maltese, that means no AIP permit needed , after doing a declaration at the notary that you do not have any other property you will pay no taxes on the first 150000 euro.

Ive read various lists of information about AIP/secondary residence and levels of purchase value. But I was really glad when the estate agent (Remax, 2 different people) told me this did not apply if I didnt own any other property. I need to check into what 'This presupposes a change of ordinary residence if the purchaser is not already a resident of Malta.' means legally in relation to my UK resident status. The stamp duty issue might still allow me to buy even if I have to do AIP amount, if Im entitled to it as first time buyer under AIP rules..

Re area/wanting to be here: Ive spent 2 months here last year, 6 weeks here this year. I wouldnt be in Malta the whole time (for at least 2 years), it would be a base, to start to develop my life here. I would continue to work in London and some of the time be here as I work in tech and can work remotely. I will look at the link youve given for legal advice, I think this is now essential - so really appreciate that.

I looked into renting, Taking a 6 month rental flat is an option but I'm intrigued by what you mean by 'many reasons, some stated above...). Yes, neighbours are an issue and so are services etc, but surely that's a risk anywhere? Ive lived in London all my adult life, so am used to stuff changing/happening. Malta seems quite straightforward by comparison!

Anyway, thanks for advice so far ....

Bosh wrote:

I first thought that as a UK (EU) resident I would be required to buy at above €104,000 but I have been assured by two estate agents and one referred to her notary that this is not the case if it is my primary residence.

Yes, that was exactly what I stated. Thanks for the feedback, appreciated. Good luck.

,

redmik wrote:

Bosh wrote:

I first thought that as a UK (EU) resident I would be required to buy at above €104,000 but I have been assured by two estate agents and one referred to her notary that this is not the case if it is my primary residence.

Yes, that was exactly what I stated. Thanks for the feedback, appreciated. Good luck.

Sorry dont get what you mean? See my later comments.

Apologies if Im annoying you, I just needed some clarification on 'primary residence' and any info or experience people may have had with secondary residence in UK/capital gains etc.

SOrry!

Hello,
Whether you need to buy above the threshold can depend entirely on the notary's interpretation of the law. They will ask you "is it your intention to use this property as your main residence". The law does not stipulate when, just that it is an intention. The 3 times we have bought in Malta this law /time scale has been interpreted differently 😄
But if you are moving here straight away the threshold rule does not apply and no permit will be required.
Helen x

what is meant that if you buy having lived here for a relatively short tme  - and things change  - yes its the same oi matter where you go but  - it takes a long long time to sell up and move on...

Bosh wrote:

Sorry dont get what you mean? See my later comments.
Apologies if Im annoying you,
SOrry!

Not annoying me at all!! I'm just trying to understand as we have both agreed on the same issue. 
I would also agree though that it would depend upon interpretation by anyone involved at the time as here, in any office, ask a question and the answer depends upon who you ask and the number of different answers depends upon the number of people in the office at that time.

redmik wrote:

Not annoying me at all!! I'm just trying to understand as we have both agreed on the same issue. 
I would also agree though that it would depend upon interpretation by anyone involved at the time as here, in any office, ask a question and the answer depends upon who you ask and the number of different answers depends upon the number of people in the office at that time.

haha redmik, I hear you!!

Its quite a complex query - Ive emailed the lawyer company you recommended (redmik) and hope to hear back from them. Ive also looked into UK tax law a little for Residence/Domicile/Ordinary Residence (which has now been largely discontinued). I think what Jackman says about Notarys interpreting the law differently is VERY relevant - as I do intend to use it as my primary residence, though not immediately. I also need more information about how that may impact my UK tax status if I buy a flat in London within a few years - electing primary and secondary residence is the issue here, and the timing and possible (negative) impact a potential swapping of status might have.

It is indeed a complex issue as are inheritance laws etc.
I wonder if this may help? Though this site is related to property on Gozo, the same laws and rules etc. would apply.
http://www.gozoprime.com/buying-guide/