Malta Property Tax & Stamp Duty
Contact Us
Malta Property Tax
| Final Withholding tax of 8% on the value of the property transferred. | 8%* |
Exceptions to the general rule: |
|
| 1. If the property is transferred before five (5) years from the date of its acquisition, the final withholding tax applicable would be 5%. The property must not form part of a project. | 5% |
| 2. Property acquired before 1st January 2004 and a promise of sale or transfer was not registered prior to 17th November 2014 - Final Withholding tax of 10%. | 10%* |
| 3. Residential property sold within three (3) years of acquisition - final withholding tax of 2% | 2% |
| 4. Residential property sold after 3 years of acquisition and sold within 1 year after vacating the property - exempt from tax. | 0% |
| 5. Donation of immovable property to spouse/descendants and/or ascendants | 0% |
| 6. Assignment of property upon separation/divorce exempt from tax. | 0% |
| 7. Cause Mortis: Capital gains tax on the sale of the property acquired through inheritance (Causa Mortis) is charged at the rate of 12% on the difference between the transfer value and the acquisition value as declared in the deed of Causa Mortis | 12% |
| 8. If the property was inherited before the 25th November 1992, the rate of tax will be equivalent to 7% of the transfer value. | 7% |
Malta Stamp Duty
| Stamp duty calculated at 5% on the value of the consideration for the transfer of the immovable property. | 5%* |
Exceptions/different rates |
|
| 1. A property purchased as a primary and sole residence, then a special rate of 3.5% is charged on the first €150,000 and 5% on the excess | 3.5% |
| 2. Government scheme for first-time-buyers who are buying a property as their sole residence. In such cases no tax whatsoever is levied on the first €150,000 of the purchase price whilst charged 5% on the excess | 5%* |
| 3. Assignment of immovable property between spouses who are married or formerly married is exempt from duty. | 0% |
| 4. Individuals who buy residential property in Gozo will benefit from a reduced stamp duty rate - 2% | 2% |
Extension of Relief from Income Tax and from Duty on Documents and Transfers on Certain Property Transfers Rules
The reliefs contemplated in the Relief from Income Tax and from Duty on Documents and Transfers on Certain Property Transfers Rules, (S.L. 123.203) will be extended for another year. These rules provide that transfers of properties built over 20 years ago, and which have been vacant for more than 7 years and transfers of properties situated in Urban Conservation Areas will not be subject to duty and Property Transfers Tax on the first €750,000 transfer value. Furthermore, first time buyers acquiring these properties will also receive a grant – of €15,000 if the property is situated in Malta or €40,000 if the property is situated in Gozo.
Extensions of First Time Buyers’ and Second Time Buyers’ Schemes
The First Time Buyers’ Scheme, contemplated in rule 3 of the Exemption of Duty in Terms of Article 23 Order, (S.L. 364.12) will be extended for a further year. This scheme provides for an exemption on duty which would otherwise have been charged on the first €200,000 transfer value upon the inter vivos acquisition of the first immovable property, which property is to be used for residential purposes. The Minister also declared that the €10,000 grant, payable to First Time Buyers over a period of 10 years, will continue to be granted in 2025.
The Second-Time Buyers’ Scheme, contemplated in the Duty on the Acquisition of the Second Immovable Property to be used as Sole Residence (Exemption) Order, (S.L.364.17) will be extended for a further year. This scheme provides for a refund of duty paid on the first €86,000 of the transfer value of the newly acquired property for individuals who transfer their first residential immovable property and acquire the second one within a 12-month period.
Other Tax Aspects
VAT refunds on restoration costs
The VAT refund scheme on restoration costs as per Government Notice No. 1,604 dated 10 December 2021 published in Government Gazette No. 20,748 will be extended for another year. In terms of this scheme VAT refunds capped at €54,000 (€300,000 X 18%) may be claimed with respect to restoration and finishing costs incurred on specific types of property, namely properties built over 20 years ago, and which have been vacant for more than 7 years or properties situated in an Urban Conservation Area or new properties built according to approved criteria.
Assignment of Promise of Sale
Assignments of Rights acquired under a Promise of Sale Rules wherein the consideration for an assignment to which the rules apply does not exceed one-hundred thousand euro (€100,000), the income derived from that assignment, computed in accordance with rule 4, is subject to a flat rate of 15%.
Malta Sotheby's
International Realty
-
Portomaso
The Quay, Portomaso Marina, Portomaso, St. Julian’s
T. +356 2010 8077 -
Tigne Point
RU04, Pjazza Tigne, Tigne Point
T. +356 2010 8070
