Malta Property Tax – Explained
| Final Withholding tax of 8% on the value of the property transferred. | 8% |
| Exceptions to the general rule: | |
| 1. If the property is transferred before five (5) years from the date of its acquisition, the final withholding tax applicable would be 5%. The property must not form part of a project. | 5% |
| 2. Property acquired before 1st January 2004 and a promise of sale or transfer was not registered prior to 17th November 2014 – Final Withholding tax of 10%. | 10% |
| 3. Residential property sold within three (3) years of acquisition – final withholding tax of 2% | 2% |
| 4. Residential property sold after 3 years of acquisition and sold within 1 year after vacating the property – exempt from tax. | 0% |
| 5. Donation of immovable property to spouse/descendants and/or ascendants | 0% |
| 6. Assignment of property upon separation/divorce exempt from tax. | 0% |
| 7. Cause Mortis: Capital gains tax on the sale of the property acquired through inheritance (Causa Mortis) is charged at the rate of 12% on the difference between the transfer value and the acquisition value as declared in the deed of Causa Mortis | 12% |
| 8. If the property was inherited before the 25th November 1992, the rate of tax will be equivalent to 7% of the transfer value. | 7% |
| 9. Property Vendors selling any property found within Urban Conservation Area (UCA) will not pay any stamp Duty on the first €750,000. | 0% |
| Malta & Gozo Stamp Duty | |
| Stamp duty is calculated at 5% on the value of the consideration for the transfer of the immovable property. | 5% |
| Exceptions/different rates | |
| 1. A property purchased as a primary and sole residence, then a special rate of 3.5% is charged on the first €200,000 and 5% on the excess | 3.5%-5% |
| 2. Government scheme for first-time-buyers who are buying a property as their sole residence. In such cases no tax whatsoever is levied on the first €200,000 of the purchase price whilst charged 5% on the excess | 0%-5% |
| 3. Assignment of immovable property between spouses who are married or formerly married is exempt from duty. | 0% |
| 4. Grant of €40,000 for first-time buyers of vacant properties in Gozo in UCA, if the property has been built for over than 20 years and has been vacant for over seven years. | |
| 5. Property owners in Gozo, including those in UCAs, can benefit from a VAT refund of up to €54,000 on the first €300,000 spent on restoration and finishing costs. | |
| 6. Property Buyers purchasing any property found within Urban Conservation Area (UCA) will not pay any stamp Duty on the first €750,000. The balance (if any) is paid at 5% | 0% |
