Acquisition of immovable property by non-residents in the light of Malta's membership in the European Union.

Abstract

The thesis aims at identifying and analysing points of interest in the Immovable Property (Acquisition by Non-Residents) Act. This law has undergone substantial amendments due to Malta's membership in the EU. A balance had to be found between the protectionist approach already existing in our legislation and complete liberalization of the market to bring Malta in line with the commitments undertaken as regards Freedom of Movement of Capital. This thesis gives a historical account of the development of the law on AIP, and the changes which took place to arrive at the present law. An analysis follows on the various elements relevant for the applicability of the law, such as the concept of "resident of Malta'', "non-resident," "primary residence" and "secondary residence purposes". The operative part of the law was examined both as regards non-residents and as regards citizens of Malta and other Member States. The difficulties which could arise applying the law were highlighted. This thesis also gives a comparative study of how this area of law is applied in the EU and internationally. Reference is also made to landmark judgments of the European Court which shed light on how "prior notification" systems and "prior autholization" systems are seen in the light of the Treaty and Directive 88/361/EEC. A detailed study of this law is essential because it affects title to property, since non-observance of this law could lead to nullity of the acquisition. The present law reflects the obligations Malta assumed under EU law. However, there is room for clarification for a more comprehensive and straightforward law.