Question 1

How much tax do I pay when selling property in Malta?

Accepted Answer

Malta charges a final withholding tax of 8% on the transfer value when you sell immovable property. The tax is calculated on the full selling price, not on your profit, and is deducted by the notary on the deed of sale. Reduced rates of 5% and 2% apply in specific situations, and a full exemption exists for long-held sole residences.

Question 2

Is selling my home in Malta exempt from property transfer tax?

Accepted Answer

Yes, if the property was owned and occupied as your sole ordinary residence for at least 3 consecutive years and you sell it within 12 months of vacating it, the transfer is fully exempt from property transfer tax. If you sell your sole residence within 3 years of buying it, a reduced 2% rate applies instead of the standard 8%.

Question 3

What is the 5% property transfer tax rate in Malta?

Accepted Answer

A reduced rate of 5% (instead of 8%) applies when the property is transferred within 5 years from the date of acquisition, provided the property does not form part of a project. This commonly benefits people who bought a property recently and are reselling it.

Question 4

How is inherited property taxed when sold in Malta?

Accepted Answer

If the property was inherited after 24 November 1992, tax is charged at 12% on the difference between the selling price and the value declared in the causa mortis deed. If it was inherited on or before 24 November 1992, a flat 7% final withholding tax applies on the transfer value.

Question 5

Who pays the property transfer tax in Malta, the buyer or the seller?

Accepted Answer

The seller pays the property transfer tax (final withholding tax) in Malta. The buyer pays stamp duty, typically at 5% of the property value. Both are collected by the notary at the deed of sale and forwarded to the Malta Tax & Customs Administration.

Property Transfer Tax Calculator

Malta Property Transfer Tax Guide 2026