Frequently Asked Questions Go Back

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TYPES OF PROPERTIES

What is the difference between Maisonette and Apartment?

Maisonette has its own separate entrance.
Apartment has common parts sharing with other tenants of the building.

What is Solitary Maisonette?

Solitary maisonette is a maisonete overlying garage/garages, where not all garages have to belong to the owner of the maisonette. Solitary Maisonette has own roof and airspace and can be extended additional floor (or more, depending on building scheme).

What is Duplex Maisonette?

Duplex Maisonette is maisonette on two floors.

What is Penthouse?

Penthouse is apartment on the top of the building with large front terrace (14ft), usually smaller back terrace (6ft) and own airspace.

What is the difference between Town House and Terraced house?

Town Houses are older, luxuriously finished, from outside touching walls with another townhouse of the same street, having more than one floor, usually have many original features such as Maltese balconies from outside, and from inside patterned tiles, wooden beams, high ceilings.
Town houses are mainly built with stone. If one buys Town House and wants to completely change it, it is possible, but frontage has to be preserved in its original state (with balconies and traditional features).
Terraced houses are not so old, can be luxuriously modernly finished, having more than one floor and usually having back garden or terrace. Terraced houses are usually built with concrete bricks or mixed stone and bricks. If one buys Terraced house and wants to drop it and rebuild it in completely different style, it is possible with no obstructions as long as development regulations are respected.
Both Town Houses and Terraced Houses can have own garage, and both have own roof.

What is the difference between Town House and House of Character?

House of Character is significantly older than Town House and fully built from old stone, having very thick walls, and usually having central courtyard and well in the middle of the house. Some very old Houses of Character have well in the living room. Houses of Character are originally built to cater for big families, with many smaller rooms, whereas some rooms in old houses of character were in past used to keep animals. They are having large floor tiles made of stone called “cangatura” or “flagstones”.
Although both types of properties have many original features, what mainly differs them is age and construction.

What is the difference between Land, Plot and Site?

Land is term describing agricultural land, it is outside building scheme.
Plot is piece of land inside building scheme and it can be developed.
Site can be piece of land for development with permits or existing object which can be dropped and developed again.

What is Airspace?

Airspace is roof which can be developed.


BUYING, SELLING AND TAXES

What is Konvenju?

Konvenju or Promise of Sale (sometimes also called Preliminary Agreement) is agreement binding Buyer to buy property on which agreement is signed unless there is reason valid in front of law which would make agreement nil.
Konvenju is also binding Seller of the property to sell it to the buyer with whom agreement is made respecting terms and conditions signed.
Konvenju is signed in front of Public Notary and Buyer has right to choose the Notary.
Notary is obliged to register agreement within 21 days upon signing, and both sides will be notified about registration.

What do I have to pay when I’m buying property?

1) Stamp duty: 5% on the total amount of the buying price

Out of these 5% you have to pay 1% on konvenju and the rest on contract.

2) Usually there is deposit on konvenju, it depends on the agreement between you and the seller, usually the buyer pays 10% on the buying price. However it is not compulsory.

Deposit is given as sign of good will to buy said property and if you (buyer) don’t buy the property because of any reason not valid in front of law, seller has right to keep deposit.

3) Notary charges are usually about 1-1,5% and are being paid on contract. Buyer (you) has right to choose notary.


What do I have to pay when I’m buying my first property?

1) Stamp duty: 3,5% on first Lm50 000/ 116 468 EUR and 5% on the rest of the buying price

Out of that amount you have to pay 1% on konvenju and the rest on contract.

2) Usually there is deposit on konvenju, it depends on the agreement between you and the seller, usually the buyer pays 10% on the buying price. However it is not compulsory.

3) Notary charges are usually about 1-1,5% and are being paid on contract. Buyer (you) has right to choose notary.

How much tax do I have to pay when I’m selling my property?

If property you are selling is your residential home and you lived in that home more than 3 years you don’t have to pay any tax (your ID card had to be on that address for more than 3 years!).

If property you are selling is not your residential home and you are owner of the property for LESS than 5 years, you can choose between options:
1. to pay 35% on gains (difference between price you have bought it for and selling price) – known as Capital Gains Tax
2. or you can pay 12% on selling price - known as Final Witholding Tax
So you can calculate what is better for you and declare that you want to pay it that way.

If you have property MORE than 5 years then you have to pay Final Witholding Tax 12% on selling price.


***Disclaimer: All information stated above is for guidance only, for all specific issues regarding TAX matters please consult your notary.