Useful Information

The Lessee enters into a rental contract that binds him/her to a stipulated period. The contract will include general conditions that safeguard both the Lessor as well as, the Lessee. Specific clauses can sometimes be included depending on the agreement between both parties. Conditions are varied and dependent on the type of business venture. In all cases it is very important that the property holds the relative permits and if not, that these permits can be obtained. The relevant planning permits pertaining to a particular commercial property, are usually obtained by the Lessor. However the business / trading licence relating to the particular business is usually obtained by the Lessee.

Similar to residential property, when one is purchasing a commercial property, a ‘Promise of Sale‘ (also known as the ‘Konvenju‘) is entered into. This is usually held at the Notary of the Purchaser‘s choice, and where the Purchaser has no connections with any particular notary, this can be suggested and coordinated by Belair. The agreement is then drafted based on the terms and conditions agreed upon, and signed by both parties in the presence of the Notary.

A deposit usually equivalent to 10% is paid upon signing of the ‘Promise of Sale‘ and held either by the Vendor or by the Notary, again depending to what has been agreed

The Notary then conducts the necessary searches and obtains the necessary documentation to satisfy both the Purchaser‘s and the Vendors’ legal requirements

During this time, an architect visit is recommended to ensure that the property is in good structural condition and that all planning permits are in order.

Contact us for further information.

It is imperative that the right location is identified, combining the right space with functionality and location, and feel to fit the requirements of your business.  Our commercial property division has gained substantial experience in the field of Commercial property and we have assist numerous leading companies both local and foreign to source their perfect office space.

Our Commercial team understand the importance of meeting our client’s needs and are able to provide professional advice on what could be the right space for our clients, enabling them to take the right decision, putting them in the optimal situation of visualising the business concept and seeing how they can incorporate the required space with the optimum location in Malta. 

The commission fee for Commercial property rentals is equivalent to 10% + VAT of the first year’s rent and is payable by both the Lessor and the Lessee.  of the first year’s rent. In the event, the lease is for a period of less than one year then, agency fees are paid pro-rata, and should the lease be extended, the additional agency fees will then be paid in the same way. 

Commission is charged at 3.5% + VAT if agreed upon as an Exclusive listing, also known as ‘Sole Agency‘, or 5% + VAT (calculated on the sale price) if listed as an open agency agreement. In this case the Commission fee is only paid by the vendor and no fees are due by the purchaser.

Class 1 – Dwellings

(a) a single person or by people living together as a family;
(b) not more than six residents living together, including a household where care is provided for residents;
(c) lodging of not more than 16 persons, provided that the operation is licensed by the Malta Tourism Authority and the premises are located within an Urban Conservation Area;
(d) a resident concurrently with his or her occupation or business, provided that it is identified as the ordinary residence of the person undertaking the occupation or business and the activity:
(i) uses less than half the residential floorspace of the dwelling – capped at 50 sqm – provided that the minimum dwelling size is not prejudiced;
(ii) relates to beauty and wellness related services, or professional offices, or medical services, or education, or any other activity which in the opinion of the Authority is compatible with residential use;
(iii) is not a client-intensive activity;
(iv) does not generate a disproportionate vehicular traffic or parking which is detrimental to the amenity of the area in which it is conducted;
(v) can be carried on in any residential area within the Development Zone without undue detriment to the amenity of that area by reason of noise, vibration, smell, fumes, smoke, soot, ash, dust, grit, light, radiation or incompatible visual impact; and
(vi) is conducted in a residence which does not form part of a block of apartments or any other block of buildings accessible from an external common entrance.

Class 2A – Residential Institutions

(a) residential accommodation and care to people in need of care other than a use within Class 1 (Dwellings);
(b) hospital or nursing home;
(c) medical clinic;
(d) clinic for professionals complementary to medicine.

Class 2B – Non Residential Institutions

(a) display of works of art other than for sale or for hire;
(b) museum;
(c) public library or public reading room;
(d) public hall or exhibition hall.

Class 2C – Education

(a) kindergarten, creche, day nursery or day centre;
(b) residential or non-residential school, college or training centre.

Class 3A – Guest Houses, Palazzini, Boutique Tourism

(a) guest house;
(b) palazzino;
(c) boutique tourism accommodation;
(d) hostel, where no significant element of care is provided, but excluding premises licensed for the sale of alcohol/ liquor to persons other than residents.

Class 3B – Hotels

(a) hotel

Class 3C – Assembly and Leisure

(a) cinema;
(b) concert hall or theatre;
(c) swimming bath or pool, skating rink, gymnasium, health club, sauna, sports hall, or other indoor or outdoor land-based sport or recreations not involving motorised vehicles or firearms.

Class 3D – Marine Leisure

(a) mooring boats and/or as a marina;
(b) diving, sailing, or windsurfing school or other marine- based sport or recreation.

Class 4A – Financial, Professional and Other Offices

(a) financial services;
(b) professional services (including doctors, lawyers, dentists);
(c) any other offices of a comparable nature.

Class 4B – Retail

(a) retail outlets;
(b) display for sale of goods excluding motor vehicles.

Class 4C – Food and Drink Establishments where no cooking is allowed

(Establishments catering for the preparation and sale of hot or cold food or drink for consumption on the premises where no cooking is allowed)

Class 4D – Food and Drink Establishments where cooking is allowed

(Establishments catering for the preparation and sale of hot or cold food or drink for consumption on the premises where cooking is allowed)

Class 5A – Light Industry

(a) research, testing and development of products or processes;
(b) craft business;
(c) any other light industry not falling under Class 5C, provided that, if any such use is carried out in a residential area, in the opinion of the Authority:
(i) it can be carried out without detriment to the amenity of that area by reason of noise, vibrations, smell, fumes, smoke, soot, ash, dust, grit, or visual impact; and
(ii) it does not generate a disproportionate vehicular traffic or parking which is detrimental to the amenity of the area in which it is conducted; and
(iii) it does not result in a significant increase in the number of employees previously engaged in the former use.

Class 5B – General Industry

(Carrying out of an industrial process not contemplated by Class 5A or Class 5C)

Class 5C – Specialised Industry

(a) smelting, calcining, sintering or reducing ores, minerals, concentrates or mattes;
(b) converting, refining, reheating, annealing, hardening, melting, carburising, forging, or casting metals or alloys other than pressure die-casting;
(c) recovering of metal from scrap, drosses or ashes;
(d) galvanising;
(e) pickling or treating metal in acid;
(f) chromium plating;
(g) burning lime or dolomite;
(h) producing zinc oxide, cement or alumina;
(i) foaming, crushing, screening or heating mineral or slag;
(j) processing pulverised fuel ash by heat;
(k) producing carbonate of lime or hydrated lime;
(l) producing inorganic pigments by calcining, roasting or grinding, except where the above processes are ancillary to the getting, dressing or treatment of minerals and undertaking in or adjacent to a quarry or mine;
(m) distilling, refining, or blending oils (other than petroleum or petroleum products);
(n) producing or using cellulose or using other pressure sprayed metal finishes (other than in vehicle repair workshops in connection with minor repairs, or application of plastic powder by the use of fluidised bed and electrostatic spray techniques);
(o) boiling linseed oil or running gum;
(p) processes involving the use of hot pitch or bitumen in the manufacture of roofing felt at temperatures not exceeding 220ºC or the manufacture of coated roadstone;
(q) stoving enameled ware;
(r) producing aliphatic esters of the lower fatty acids, butyric acid, caramel, hexamine, iodoform, naphthols, resin products (excluding plastic moulding or extrusion operations and producing plastic sheets, rods, tubes, filaments, fibres or optical components produced by casting, calenering, moulding, shaping or extrusion), salicylic acid or sulphonated organic compounds;
(s) producing rubber from scrap;
(t) chemical processes in which chlorophenols or chlorocresols are used as intermediates;
(u) manufacturing acetylene from calcium carbide;
(v) manufacturing, recovering, or using pyridine or picolines, any methyl or ethyl amine, or acrylates;
(w) the carrying on of an industrial process which uses animal remains as the primary input or as part of the process of manufacture.

Class 6A – Storage and Distribution

(Storage – other than the storage, on land or on water, of boats – or as a distribution centre)

Class 6B – Boatyards

(a) storing boats (other than in a marina);
(b) boat building;
(c) boat repair and servicing.

Class 7 – Agriculture

(Agricultural activity which involves the intensive raising of crops or animals)

Class 7 – Aquaculture

(Hatching or fattening of fish)

Individuals taking up residence in Malta may import their household goods and furniture into Malta free of VAT and import duties. Residents who are third country nationals may be required by the customs authorities to make a deposit or provide a bank guarantee for the amount of VAT/duty in question. This deposit is then refunded after a defined period.

EU citizens may register a car in Malta without the payment of any tax provided that they can prove that

• They have transferred their residence permanently to Malta
• The have owned the car for 24 months prior to it being brought into Malta.
• The car must be brought into Malta within 12 months of taking up residence.

The above does not apply to a student returning to Malta after having attended a school, university or other educational or vocational establishment abroad for a period of less than five years.

For more information one may contact https://www.transport.gov.mt/

Regulation (EU) No 576/2013 regulates the non-commercial movement of pet animals which accompanies its owner where its owner moves and is under his direct responsibility. The non-commercial movement of the pet animal may take place up to five days before or after the movement of the owner, in which case the non-commercial movement of the pet animal is carried out under the responsibility of a natural person who has authorization in writing from the owner to carry out the non-commercial movement of the pet animal on his behalf.

The maximum number of pet animals (dogs, cats or ferrets) which may be moved for non-commercial purposes is up to 5.

Exceptionally, the maximum number may exceed 5 only when all of the following conditions are met:

• The movement is for the purpose of participating in competitions, exhibitions or sporting events (or in training for such events)
• Written evidence is provided that the animals are registered either to attend an event or with an organization organizing such events
• The animals are more than six months old.

The movement of pet animals younger than 15 weeks of age (105 days old) is not permissible.

Refer to the site below for a detailed understanding of the requirements for importing Pets into Malta. https://agrikoltura.gov.mt/en/vrd/Pages/travelPet.aspx

Malta is an ideal place to take up residence and local legislation encourages foreigners to live in Malta under favorable fiscal conditions.

With the introduction of various policies, foreigners may benefit from attractive tax structures, amongst other advantages. Foreigners residing in Malta are not taxed on their worldwide income but only on Maltese sourced income and on foreign income remitted to Malta and benefit from relief from double taxation, whether through negotiated double tax agreements with a substantial number of countries worldwide, or through unilateral provisions. Certain foreign income remitted to Malta qualifies for a reduced withholding rate of foreign tax (this applies typically to dividends, interest and royalties), or is exempt from foreign tax (this applies typically to private pensions and to certain capital gains). The provisions of each particular treaty entered into by Malta, must however, be consulted to determine eligibility. Any EU/EEA or third country national who resides in Malta for more than three months requires a permit from Identity Malta, which is granted on specific grounds, some of which are listed below.

EU / EEA – An EU/EEA national may take up residence in Malta based on one of the following grounds: –

Economic Self-Sufficiency – which requires that individuals are able to provide for themselves and for their accompanying dependants by not being in need of any financial support from the Maltese government.

Employment – an EU/EEA national may seek offers of employment in Malta as an employee. Alternatively, an individual may opt to set up his own business in Malta.

Student – residence may be granted for the duration of term required to complete one’s studies that are undertaken in Malta.

Third Country Nationals (non-EU/EEA) – The criteria for third country nationals (TCNs) obtaining the right to reside in Malta, vary from those applicable to EU/EEA nationals.

Following are a few of the possibilities: –

Employment – TCNs make seek to be employed in Malta subject to their potential employer submitting an application for an employment license for such post and actually obtaining said employment license.

Self-Employment – A TCN may qualify to apply for self-employed status and work for one’s business subject to meeting certain criteria, which can include investment in capital (minimum amount applies); commitment to recruit a number of EU/EEA nationals; holding a directorship in specially approved companies/projects.

Education – Temporary residence may be granted for the entire period of education to students in any private school or university.