What Are “Special Designated Areas” (SDAs) in Malta and Gozo?
If you are considering buying property in Malta, particularly as a foreigner or someone unfamiliar with local regulations, you may come across the term Special Designated Area, or SDA.
A Special Designated Area is a specific zone or development where foreign nationals—including non-residents—can purchase property on the same terms as Maltese citizens. Outside these areas, buyers from outside Malta or the European Union (EU) generally need a special permit, known as an Acquisition of Immovable Property (AIP) permit, to complete a property purchase. However, properties within SDAs are exempt from this requirement, making them especially attractive for international investors.
SDAs are typically high-end developments located in sought-after areas and built to high standards. They are designed to appeal to international buyers, whether for permanent residence, holiday homes, or investment purposes. Both EU and non-EU citizens can buy multiple properties within these areas without obtaining an AIP permit, a flexibility not available elsewhere in Malta.
Key benefits of buying property in an SDA include:
- No AIP Permit Needed: Non-Maltese buyers can purchase property without applying for the standard permit.
- Ownership of Multiple Properties: Foreign buyers can invest in more than one property within SDAs, unlike other parts of Malta.
- Rental Flexibility: Properties can be rented on both short-term and long-term leases, making them ideal for investors seeking rental income.
Below is the complete current list of SDAs in Malta and Gozo. Keep in mind that this list is regularly updated as new areas are designated, so it’s important to check for the latest information before making a purchase.