We often get asked about the expenses incurred when selling a property in Malta so in order to clarify this crucial area here is a list that we have compiled to help you.
As of January 2015, a new property tax has been introduced called the ‘Final Withholding Tax‘ which is typically charged at a rate of 8% of the sale price (not the profit). Payment is made to the Notary during the selling process who then passes it onto the Inland Revenue.
IMPORTANT UPDATE: as from 9th June 2020 the ‘Final Withholding Tax’ has now been reduced to 5% on the first €400,000 as part of the post-COVID19 ‘Economic Recovery Plan’. This lower level is expected to run until 1st April 2021.
For more information about this Final Withholding Tax please get in touch with one of our experts on: Call (+356) 7928 1567 or email: info@immobilienmalta.com
In Malta there are two main options when selling a property:
(a) Open Agency – Sellers pay 5% of the sale price (plus 18% VAT) where there is no ‘Sole Agency Agreement’ meaning that multiple Estate Agencies can represent the property.
(b) Sole Agency – Sellers pay 3.5% (plus 18% VAT) where there is a Sole Agency agreement in place meaning that one Estate Agency has the exclusive rights to sell the said property for an agreed period of time (usually 6 months to 1 year).
If you would like to know more about signing a Sole Agency Agreement with us click here