Tax Rates on Property in Malta (2025 Guide): Stamp Duty, Income Tax and Buyer Incentives

Buying or selling property in Malta in 2025? Whether you’re investing in residential or commercial real estate, understanding the current tax landscape is essential. This comprehensive guide breaks down all the key property taxes in Malta, including stamp duty, income tax on property sales, notarial fees and government incentives – updated with the latest legal changes as of April 2025.

Expected Stamp Duty on Property Purchases in Malta (2025)

Stamp duty, also known as duty on documents and transfers, is a mandatory tax on the acquisition of immovable property in Malta. The standard stamp duty rate is 5%, but there are several tax incentives and exemptions based on buyer eligibility and property type.

Exemptions and Reduced Stamp Duty Rates

First-Time Buyers (2025 Extension)
- 0% stamp duty on the first €200,000 of the property’s value.
- Valid for acquisitions made up to 31 December 2025, with documentation due by 28 February 2026.
Second-Time Buyers
- Refund on duty paid on the first €86,000 of the new property’s value.
- Applies if selling your first home and purchasing another within 12 months.
- Extended through 31 December 2025, with submission by 28 February 2026.
Urban Conservation Area (UCA) Properties & Long-Vacant Homes
- Full exemption on the first €750,000 of the property value.
- Encourages restoration and preservation of Malta’s architectural heritage.
- Valid for transfers completed by 31 December 2025.
Gozo Property Purchases
- Previous 2% rate ended on 31 December 2023.
- Standard 5% rate now applies to all Gozo properties.

Government Incentives for Property Restoration in Malta

To encourage the regeneration of historic properties, home restoration incentives remain in place for 2025:

Restoration Incentives Include:

VAT Refunds:
- Up to €54,000 on restoration expenses for qualifying properties.
First-Time Buyer Grants:
- €15,000 for properties in Malta
- €40,000 for properties in Gozo

These incentives support sustainability and heritage preservation across Malta’s urban cores and rural areas.

Tax Considerations for Commercial Property in Malta

While many property taxes apply universally, some property tax incentives in Malta are exclusive to residential buyers.

First-time and second-time buyer schemes do not apply to commercial property purchases.
Businesses purchasing commercial real estate should consult with a legal or tax advisor to understand eligibility for any specific schemes or deductions.

Conclusion: Understanding Malta Property Taxes in 2025

Navigating the Maltese real estate market – whether for residential or commercial property – requires awareness of evolving property tax regulations and government incentives.

To ensure a smooth transaction:

Stay updated on the latest tax legislation.
Work with a professional notary, estate agent and financial advisor.
Leverage available stamp duty exemptions, VAT refunds and restoration grants.

Want to buy or sell property in Malta in 2025? Understanding these property tax rules will help you make informed, financially sound decisions. Our consultants at Frank Salt Real Estate are up-to-date with the latest figures and legislation when it comes to buying or selling and can advise you accordingly on what you can expect. Give us a call today.