Stamp Duty & Buying Costs in Malta

Malta has no VAT on property transfers and no local council or municipal property tax. The main cost buyers need to budget for beyond the price itself is stamp duty, alongside notary fees.

Standard stamp duty rate

Stamp duty on property purchases in Malta is charged at 5% of the property value or purchase price, whichever is higher, payable by the buyer. Reduced rates and exemptions apply in a number of specific circumstances, covered below.

First-time buyer scheme

Buyers purchasing a property for the first time, to use as their sole and primary residence, benefit from several measures:

• 0% stamp duty on the first €200,000 of the property’s value, with the standard 5% rate applying to any excess - a saving of up to €10,000. Since 28 October 2025 this has been a permanent scheme rather than an annually-renewed one.
• A €10,000 government grant, paid in instalments of €1,000/year over 10 years, for properties valued up to €500,000.
• The Deposit Payment Scheme - for properties up to €225,000, the Housing Authority finances the interest on a loan covering the 10% promise-of-sale deposit over 25 years, for buyers who qualify for a home loan but can’t cover the deposit upfront.

Urban Conservation Area (UCA) incentives

Separately, buyers of a property in an Urban Conservation Area that is more than 20 years old and has been vacant for more than 7 years (or is newly built in traditional Maltese style) can benefit from:

• Stamp duty exemption on the first €750,000 of the property’s value.
• A €15,000 grant for property in Malta, or €40,000 for property in Gozo, plus a full tax exemption, if the buyer is also a first-time buyer meeting the UCA conditions above.
• A renovation and restoration refund of up to €54,000 on the first €300,000 spent on refurbishment - covering materials, government and planning charges, and capped professional fees - for first-time buyers under the same UCA scheme.

Second-time buyer scheme

Sellers who sell their current residence and buy a new one within 12 months can claim a refund of the stamp duty paid on the first €86,000 of the new property’s value.

Other stamp duty exemptions

• A surviving spouse is exempt from stamp duty on inheriting their deceased spouse’s share of their sole residence; children are similarly exempt inheriting a parent’s residence, if the causa mortis declaration is made within 1 year of death.
• Stamp duty is reduced from 5% to 1.5% on the inter vivos transfer of a family business to children continuing that business.

Notary fees

Notary fees are typically around 1% of the property value, varying with the complexity of title research required. Notaries are public officials and generally do not compete on price.

What sellers pay

Sellers pay a separate final withholding tax, typically 8% of the transfer value, with several reduced rates and exemptions depending on circumstances - see the Final Withholding Tax glossary entry for the full detail. This doesn’t fall on the buyer directly, but can factor into a seller’s pricing.

Budgeting overall

Buyers who don’t qualify for any exemption should budget for stamp duty plus notary fees - commonly roughly 6% of the purchase price - on top of the agreed price. First-time buyers and UCA-eligible buyers can reduce this substantially; confirm which schemes you qualify for, and exact current figures, with your notary before signing a promise of sale, since rates, grants and thresholds are revised in the annual budget.