What is the first step when buying property in Malta?

Liking the property comes first — but "liking" means more than first impressions

Notary Dr. Michael Laferla puts it directly: the first step is making sure you like the property, and that you've done your homework when it comes to financing it. Both have to be in place before serious moves are made toward purchase.

The property is the biggest financial commitment most people make. The first step is being genuinely confident that this is the right one. That means viewing the property more than once if possible, ideally at different times of day, checking the neighbourhood, talking to neighbours if you can, and looking beyond the staging or the photographs. A property that photographs well in summer light can feel different in winter. A street that's quiet on a Sunday viewing might be the school run route on Monday morning.

It also means looking past aesthetics at what actually matters long-term: the orientation of the property, the building's condition, water and damp issues, and how the space will work for your actual life.

Doing your financing homework is the second non-negotiable

Before you start making serious moves toward a particular property, you need to know what you can actually afford. This involves more than knowing whether you can secure a mortgage — it means understanding the full upfront cash requirement, which is significantly more than the deposit alone.

The 10% deposit is what most buyers think of first, because it's the amount paid at the Konvenju. But a realistic budget for buying in Malta needs to account for several other upfront costs that are often underestimated. For a buyer using a mortgage, these costs add up to substantially more than 10%.

The realistic upfront cost picture

Beyond the 10% deposit, the buyer needs to budget for:

• Stamp duty. The standard rate under Malta's Stamp Duty Act is 5% of the property value, paid by the buyer. First-time buyers benefit from an exemption on the first €200,000 of the purchase price, reducing the effective rate significantly. The 1% provisional stamp duty is paid at the Konvenju (within 21 days of signing); the balance is paid at the final deed.
• Notary fees. Notary fees in Malta are guided by the framework published by the Notarial Council of Malta and typically range from 1% to 2.5% of the property value, depending on the complexity of the transaction and the level of due diligence required.
• Architect or surveyor inspection. Many buyers engage an architect or surveyor for a structural inspection before committing to a Konvenju, particularly for older properties. Banks may also require an architect's valuation report as part of mortgage approval. The cost varies significantly depending on the property and the scope of the inspection.
• Life insurance. Maltese banks require life insurance covering the mortgage amount as a condition of approval. The first year's premium is typically paid upfront at the final deed. The amount varies based on the buyer's age, health, and the mortgage size.
• Building insurance. Banks also require building insurance covering the property. As with life insurance, the first year's premium is typically paid upfront at the final deed. The cost depends on the property's value and characteristics.
• Bank charges. Mortgage applications come with their own costs — processing fees, the bank's own legal review of the title searches, and the cost of the bank's valuation report. These vary by bank.
• Public Registry and Land Registry fees. Registering the final deed and conducting the title searches involve fees paid to these government bodies.

Added together, the realistic upfront cash requirement for a second-time buyer with a mortgage is significantly higher than the 10% deposit — often approaching 18-20% of the property value once all components are accounted for. First-time buyers, with the stamp duty exemption on the first €200,000, face a lower total, but it's still substantially more than the deposit alone.

The point is not to be precise about the total — every buyer's situation differs — but to be realistic about it. Walking into a Konvenju thinking the deposit is the only cash needed is one of the most common ways buyers find themselves stretched at the final deed.

Why these two come before everything else

Once you've made an offer and the seller accepts, things move quickly — Promise of Sale, deposit, due diligence by your notary, the path to the final deed. Walking into that process without being confident in the property or your financing is where the most expensive mistakes happen. The Konvenju is a binding agreement; backing out without a valid contractual reason means losing the 10% deposit. Doing the property and financing homework first means you're committing from a position of confidence, not crossing your fingers.

Once those foundations are in place

When you're confident in the property and clear on the financing, the next step is engaging a notary. The notary handles the legal side — drafting the Konvenju, conducting title searches, verifying that the property is free of debts or planning issues. But that work only matters once the buyer is genuinely ready to commit, which is what the first step is really about.

Sources

• Dr. Michael Laferla — Yitaku Asks video (Q1), foundational framing
• Maltese Stamp Duty Act (Chapter 364 of the Laws of Malta) — 5% standard rate, first-time buyer exemption on first €200,000, 1% provisional stamp duty at Konvenju
• Notarial Council of Malta — fee guidelines (1-2.5% range for typical transactions)
• Inland Revenue Department of Malta — stamp duty administration
• Maltese banking practice — life and building insurance as standard mortgage approval conditions