Glossary

Plain-language definitions of Malta property, legal and tax terms.

AIP Permit: Authorisation required for certain non-resident buyers to acquire immovable property in Malta.
Airspace: The right to build additional floors above an existing structure, bought and sold separately from the building itself under Maltese property law.
Causa Mortis: The declaration made when property is inherited, which must be filed within a set period and affects stamp duty exemptions for spouses and children.
Deposit Payment Scheme: A Housing Authority scheme financing the interest on a loan covering a first-time buyer's 10% promise-of-sale deposit, for properties up to €225,000.
Emphyteusis: The legal term for ground rent (ċens) - a contract granting a property in perpetuity or for a term against an annual rent, redeemable at 20x the annual rent.
Farmhouse (Razzett): A traditional rural Maltese property, often stone-built and converted from agricultural use, concentrated in villages like Siġġiewi, Mġarr and Gozo's western villages.
Final Withholding Tax: A tax paid by the seller on property transfers in Malta, standard rate 8% of the transfer value, with several reduced-rate exceptions.
House of Character: An older traditional Maltese property - often a townhouse - with original architectural features, commonly found in historic village cores.
Housing Authority: Malta's public body administering first-time buyer support schemes, including the Deposit Payment Scheme and social/affordable housing.
Konvenju (Promise of Sale): A binding preliminary contract between buyer and seller that precedes the final deed of sale.
Konvenju Deposit: The deposit - commonly around 10% of the price - paid when signing a promise of sale, held pending completion.
Loan-to-Value (LTV): The proportion of a property's value a bank will lend against, with foreign buyers generally getting a lower LTV (larger deposit) than residents.
Maisonette: A self-contained Maltese home occupying part of a building over one or two floors, typically with its own street-level entrance and small yard.
MPRP (Malta Permanent Residence Programme): A residence-by-investment programme granting permanent residency in exchange for a qualifying property purchase or lease plus government fees.
Notary: A public official in Malta responsible for property title searches, drafting the promise of sale and final deed, and registering the transfer.
NSO Malta: The National Statistics Office - publisher of Malta's official Residential Property Price Index and property transaction data.
Outside Development Zone (ODZ): Countryside land where new development is generally prohibited under a strict "ODZ is ODZ" planning policy, with narrow exceptions.
Perit: Malta's licensed architect/civil engineer - required to sign off planning applications, structural surveys and official property plans.
Planning Authority: Malta's national planning body, responsible for building permits, Urban Conservation Area designations and Outside Development Zone enforcement.
Power of Attorney: A legal document letting someone else sign a promise of sale or final deed on a buyer or seller's behalf, commonly used by overseas buyers.
Public Registry: Malta's official register of property deeds and title, searched by notaries as part of due diligence before a sale completes.
Rental Yield: Annual rental income as a percentage of property value - gross yield ignores costs, net yield accounts for them.
Residential Property Price Index (RPPI): NSO Malta's official quarterly measure of residential property price movement, based on actual final deeds of sale.
Shell Form (Bare Shell): A new property sold as a structural shell only - no internal walls, flooring, kitchen or bathroom fittings - for the buyer to finish.
Special Designated Area (SDA): A development where any buyer can purchase property without an AIP permit or ownership restrictions.
Stamp Duty: A tax paid by the buyer on property purchases in Malta, standard rate 5%, with a first-time buyer exemption on the first €200,000.
Undivided Share: Co-ownership of a property where each owner holds a fractional share of the whole, rather than a physically divided part.
Urban Conservation Area (UCA): A protected zone of traditional Maltese architecture where buyers of qualifying old, vacant properties can access stamp duty exemptions and grants.