As of January 2015, a new property tax has been introduced called the ‘Final Withholding Tax‘ which is typically charged at a rate of 8% of the sale price (not the profit). Payment is made to the Notary during the selling process who then passes it onto the Inland Revenue.
For more information about this Final Withholding Tax please get in touch with one of our experts on:
Call +356 2131 0800 / 0088 or email: firstname.lastname@example.org
In Malta there are two main options when selling a property:
(a) Open Agency – Sellers pay 5% of the sale price (plus 18% VAT) where there is no ‘Sole Agency Agreement’ meaning that multiple Estate Agencies can represent the property.
(b) Sole Agency – Sellers pay 3.5% (plus 18% VAT) where there is a Sole Agency agreement in place meaning that one Estate Agency has the exclusive rights to sell the said property for an agreed period of time (usually 6 months to 1 year).
If you are interested in selling your home in Malta then please contact one of our team here