Almost 1,000 properties, worth €400 million, were sold to foreigners over the last four years on the strength of an Acquisition of Immovable Property Permit (AIP) issued by the Maltese tax authorities, Finance Minister Edward Scicluna said in Parliament.

A total 280 of the 941 properties were sold last year.

The lowest number of sales, 207, was registered in 2013.

Replying to questions by Claudio Grech (PN), Prof. Scicluna gave several details about this component of the local property market since 2012.

At law, only Maltese persons and European Union citizens who have resided continuously in Malta for at least five years may purchase property without an AIP issued by the Capital Transfer Duty Department.

The minimum price is also set at law: €104,500 for the purchase of a flat or a maisonette and €174,000 for the purchase of any other immovable property.

Almost half of these purchased properties (482) were situated in the northern harbour district (St Julian’s, Sliema, Swieqi, Gżira, Msida, Pietà, Ta’ Xbiex, Pembroke, San Ġwann, Qormi, Birkirkara, Ħamrun and Santa Venera).

The value of these properties amounted to €175 million, an average of €363,881 for each. The properties commanding the highest average price were those in the northern district (Għargħur, Mellieħa, Mġarr, Mosta, Naxxar and St Paul’s Bay) at €765,745.

Since 2012, 175 properties costing over €8 million were bought in these localities following an AIP.

The south eastern district (Żejtun, Birżebbuġa, Gudja, Għaxaq, Kirkop, Marsascala, Marsaxlokk, Mqabba, Qrendi, Safi and Żurrieq) registered the lowest number of transactions, in both amount and value, with 38 properties valued at €5.5 million.

AIP sales in Gozo ranked in third place among Malta’s six districts. A total of 115 properties worth €25 million were transacted in Gozo since 2012. At an average value of €220,801, AIP properties in Gozo ranked second lowest. These market dynamics are reflected in the revamped residency and visa programme launched last August allowing third country nationals to gain residence permits against an investment in interest-free government bonds of €250,000.

Besides the bond investment, applicants will buy a property of a minimum value of €320,000, or €270,000 in Gozo or the south of Malta. A €30,000 ‘contribution’ must also be made, of which €10,000 goes to the private company promoting the scheme and the rest to Identity Malta.

Individuals given residence visas will be able to live in Malta and travel in the Schengen area.