Buyer EXPenses
Property Buying Expenses In Malta
Below are the additional costs that any buyer will have to pay when purchasing a property in Malta, as well as the agreed price with the seller:
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Stamp Duty on Property Purchases in Malta
- The standard rate of Stamp Duty in Malta is 5%. However, there are certain government incentives which may reduce this rate depending on individual circumstances and some of which are detailed below.
- 20% of the total stamp duty is payable on the ‘Promise of Sale’ agreement (often referred to as the ‘Konvenju’ in Maltese), and the balance is payable on the final deed of purchase.
- First-Time Buyers – Eligible ‘First-Time Buyers’ purchasing their first residence may benefit from an exemption from stamp duty on the first €200,000 of the property’s value, representing a potential saving of up to €10,000. The exemption is subject to specific eligibility requirements.
- Urban Conservation Area (UCA) – Qualifying property situated within an Urban Conservation Area may benefit from an exemption from stamp duty on the first €750,000 of the property’s value. Subject to the applicable conditions, the vendor may also benefit from an exemption from the applicable final withholding tax on the first €750,000. These provisions are currently applicable until 31 December 2026.
- Second-Time Buyers – Eligible purchasers who sell their existing residential property and acquire a replacement residence may qualify for a refund of stamp duty paid on the first €86,000 of the replacement property’s value. Persons with qualifying disabilities may benefit from a refund on the first €150,000, subject to the relevant conditions. The scheme currently applies to qualifying acquisitions made up to 31 December 2026.
- Gozo – residential properties purchased on the island of Gozo currently benefit from a reduced stamp-duty rate of 2%, subject to the applicable conditions.
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Property Restoration Grants & Incentives in Malta
There are several Government restoration and refurbishment schemes currently available in Malta, and some are particularly relevant to buyers of houses of character, townhouses and properties in Urban Conservation Areas (UCAs). Ask one of our team for more details here.
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Notary Fees
A Notary is a public official who acts for the government and is usually appointed by the buyer. It’s their job to check the property is unencumbered and that there are no problems relating to Banks or individuals.
Notary fees are normally about 1.5% to 2.5% of the property price and are normally paid in two stages, 33% on signing the preliminary agreement and the remaining 67% with the publication of the final deed of sale. Notary fees are calculated according to the Notarial Council Guidelines under www.notariesofmalta.org
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Ground Rent
Where there is ground rent relating to a property, the buyer will have to pay a recognition fee, (which is 1 years ground rent) (known as the ‘laudemium’) to the ground rent owner, plus the ground rent for the property itself so in total there will be two ground rent payments in the first year.
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Registration Fees
Property Value in € Rate € up to €11,646.87 13.98 11,646.87 – 23,293.73 18.63 23,293.73 – 46,587.47 27.95 46,587.47 – 69,881.20 37.27 69,881.20 – 93,174.94 46.59 93,174.94 + every 23,293.73 = 9.32