{"id":4916,"date":"2025-05-08T10:25:46","date_gmt":"2025-05-08T08:25:46","guid":{"rendered":"https:\/\/sciberras.legal\/?p=4916"},"modified":"2025-11-26T14:44:31","modified_gmt":"2025-11-26T13:44:31","slug":"tax-implications-of-buying-or-selling-property-in-malta","status":"publish","type":"post","link":"https:\/\/sciberras.legal\/in\/2025\/05\/08\/tax-implications-of-buying-or-selling-property-in-malta\/","title":{"rendered":"Tax implications of buying or selling property in Malta"},"content":{"rendered":"

From the series Living, Land & Law: Fortnight Insights \u2013 Article 9<\/strong><\/p>\n\n\n\n

What are the tax implications of buying or selling property in Malta, including stamp duty, capital gains tax and other property-related taxes?<\/strong><\/p>\n\n\n\n

Tax Implications for the Buyer<\/strong><\/p>\n\n\n\n

In Malta, unlike many other countries, there isn\u2019t a long list of taxes which are associated with purchasing a property. For instance, there are no VAT implications on the purchase or sale of any immovable property situated in Malta and there is also no local council or municipal tax.<\/p>\n\n\n\n

Buyers are subject to pay stamp duty, which is set at a flat rate of 5% on the value of the consideration for the transfer of the property. However, some different rates are applicable in certain circumstances.<\/p>\n\n\n\n

Firstly, buyers who purchase a property that is situated in an Urban Conservation Area, is built more than 20 years ago and has been vacant for more than 7 years, or otherwise, is newly developed but through Maltese traditional architecture can benefit from an exemption on stamp duty on the first \u20ac750,000 of the property.<\/p>\n\n\n\n

Then, when it comes to the surviving spouse inheriting the share of the deceased spouse, of their sole residence, the surviving spouse is exempt from stamp duty. Similarly, children are exempt if they inherit the residence of their parents, so long as the causa mortis <\/em>declaration is made within 1 year from the date of death.<\/p>\n\n\n\n

Differently, there is a reduction in stamp duty from 5% to 1.5% when it comes to the transfer of family businesses, inter vivos, to the children, to continue assisting the family business.<\/p>\n\n\n\n

Without a doubt, the government prioritises first-time buyers. Indeed, the government offers various schemes for first time-buyers who are buying property, for the first time, and which will be used as their primary and sole residence. Firstly, in such scenario, no tax is payable on the first \u20ac200,000, whilst the flat rate of 5% is applicable for the excess.<\/p>\n\n\n\n

Moreover, first-time buyers purchasing a property in Malta are also eligible for a one-time government grant of \u20ac10,000, distributed over a period of 10 years (paid in instalments of \u20ac1,000 per year). However, to qualify for this scheme the property\u2019s value must not surpass half a million.<\/p>\n\n\n\n

Another scheme available to first-time buyers is the Deposit Payment Scheme, applicable if the value of the desired property does not exceed \u20ac225,000. This scheme is designed for couples or individuals eligible for a home loan but unable to provide the 10% down payment required at the signing of the promise of sale agreement. Under this arrangement, the buyer will pay the monthly instalment to cover the personal loan, whilst the Housing Authority finances the interest on the loan for a total period of 25 years.<\/p>\n\n\n\n

First-time buyers can also apply for the UCA grant for first-time buyers, if the property sought after:<\/p>\n\n\n\n