Typical Buyer Expenses In Malta

Below are the additional costs that any buyer will have to pay when purchasing a property in Malta, as well as the agreed price with the seller:

  1. Stamp Duty

    • The standard rate of Stamp Duty in Malta is 5%, however, this has been reduced to 1.5% (on the first €400,000) as part of the post-COVID 19 ‘Economic Recovery Plan’. This incentive is scheduled to begin from 9 June 2020 through till 1 April 2021.
    • 20% of the total stamp duty is payable on the ‘Promise of Sale’ agreement (often referred to as the ‘Konvenju’ in Maltese), and the balance is payable on the final deed of purchase.
    • Please Note: the government has an ongoing incentive for ‘First-Time Buyers’ where there is an exemption from stamp duty on the first €150,000 (therefore the maximum saving could be €5250). Both foreigners and Maltese nationals can benefit from this scheme provided certain criteria are satisfied. For more information click on the link below in the Notary section.
    • There is a new scheme being introduced in the Budget 2018 for second-time buyers, where the stamp duty paid will be reduced by up to €3,000. Also if the buyer is disabled, the reduction will go up to a maximum of €5,000.
    • Gozo – residential properties bought in Gozo qualify for a reduced rate of stamp duty at 2% as long as the promise of sale is signed and registered after 16th October 2016 with the Inland Revenue Department (IRD) and the final deed is completed by 31st December 2018.
  2. Restoration Grants

  3. There are currently incentives for first time buyers who can claim up to a maximum of €100,000 in property related expenses when restoring a home in a UCA zone (Urban Conservation Area). Ask one of our team for more details here.

  4. Notary Fees

  5. A Notary is a public official who acts for the government and is usually appointed by the buyer. It’s their job to check the property is unencumbered and that there are no problems relating to Banks or individuals.

    Notary fees are normally about 1.5% to 2.5% of the property price and are normally paid in two stages, 33% on signing the preliminary agreement and the remaining 67% with the publication of the final deed of sale. Notary fees are calculated according to the Notarial Council Guidelines under www.notariesofmalta.org

  6. Ground Rent

  7. Where there is ground rent relating to a property, the buyer will have to pay a recognition fee, (which is 1 years ground rent) (known as the ‘laudemium’) to the ground rent owner, plus the ground rent for the property itself so in total there will be two ground rent payments in the first year.

  8. Registration Fees

Property Value in € Rate €
up to €11,646.87 €13.98
€11,646.87 – €23,293.73 €18.63
€23,293.73 – €46,587.47 €27.95
€46,587.47 – €69,881.20 €37.27
€69,881.20 – €93,174.94 €46.59
€93,174.94 + every €23,293.73 = €9.32

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