Malta Property Transfer Tax Guide 2026

Stamp Duty (Duty on Documents)

Stamp duty is the primary tax on property transfers in Malta. It is calculated on the property's purchase price or market value, whichever is higher. This ensures the government receives fair tax revenue even if properties are sold below market value.

Stamp Duty Rates 2026

Two-Stage Payment Structure

The 5% stamp duty is paid in two installments to align with the property transfer process:

First-Time Buyer Benefits

First-Time Buyer Rates

• €0-€200,000: 0% stamp duty (fully exempt)
• Above €200,000: 3.5% on excess amount

Eligibility Requirements

To qualify as a first-time buyer in Malta:

• You must not have previously owned immovable property in Malta or Gozo
• The property must be your primary residence (sole ordinary residence)
• You must reside in the property for a minimum period (typically 3 years)
• Property value typically under €200,000 for full exemption

Savings Calculation Example

*First-time buyer calculation: 3.5% × (Property Value - €200,000)

Notarial Fees

A notary public is required for all property transfers in Malta. The notary prepares the deed of sale (konvenju), verifies all legal requirements, and registers the transfer with the Land Registry.

Typical Notarial Fee Structure

Note: Notarial fees are negotiable and can vary between notaries. It's advisable to request quotes from multiple notaries before proceeding.

What Notarial Fees Cover

• Preparation of the Promise of Sale (Konvenju)
• Preparation of the Final Deed of Sale
• Title verification and due diligence (checking for encumbrances)
• Registration with the Malta Land Registry
• Payment of stamp duty on your behalf
• Coordination with banks for mortgage documentation

Capital Gains Tax (Seller's Responsibility)

While buyers pay stamp duty, sellers must pay capital gains tax on property sales. Malta offers two options: an 8% final withholding tax on the selling price, or taxation on the actual gain at progressive income tax rates. Most sellers opt for the 8% final withholding tax for simplicity.

Capital Gains Tax Details

• Rate: 8% final withholding tax on the selling price (not the profit)
• Alternative: Sellers may elect to be taxed on the actual gain at progressive rates (12%-35%)
• Who Pays: Seller (not buyer)
• Collection: Deducted by notary at time of sale

Important: The 8% final withholding tax is calculated on the full selling price, not on the profit. It is a final tax, meaning no further tax is due on the sale proceeds. This is governed by the Income Tax Act (Chapter 123).

Additional Transfer Costs

Beyond stamp duty and notarial fees, buyers should budget for these additional expenses:

Payment Timeline

Understanding when each payment is due helps with financial planning:

Complete Example: €300,000 Property Purchase

Let's calculate the total costs for a standard buyer purchasing a €300,000 property:

*Assumes 10% deposit (€30,000) and 90% mortgage (€270,000)

First-Time Buyer Comparison

If the same buyer qualified as a first-time buyer, their costs would be:

Exemptions & Special Cases

Gozo Property Discount

Properties located in Gozo benefit from a 2% reduction in stamp duty (3% instead of 5%). This incentive aims to promote development and population growth in Malta's sister island.

Urban Conservation Areas (UCA)

Heritage buildings within designated Urban Conservation Areas qualify for a reduced stamp duty rate of 2.5% to encourage restoration and preservation of historical properties.

Property Inheritance

Inherited property is subject to a different duty structure:

• Spouse & descendants: 5% on amounts over €250,000
• Ascendants: 5% on amounts over €250,000
• Other relatives: 7% on amounts over €12,000

Property Gifts (Donation)

Property transfers by donation (gift) are subject to duty on documents at rates similar to inheritance, depending on the relationship between donor and recipient.

Frequently Asked Questions