All property purchases are subject to a stamp duty payable to the Government of Malta. The standard maximum rate is 5% on the immovable part of the property. 20% of stamp duty is to be paid on promise of sale. Certain incentives are currently applicable mainly:
– On any amount of residential property situated in Gozo, bought on promise of sale in 2020 of any price, a reduced rate of 2% stamp duty instead of 5% is applicable. 50% of stamp duty is to be paid on promise of sale. A garage of up to 30 square meters in same block can be added. Contract must be published by 31st December 2020.
– First time buyers who reside on the Maltese islands, are exempt from paying any stamp duty on the first property they are acquiring on the first €175,000 of the price. Offer is valid up to end of 2020.
– Buyers who have other properties but are buying their main residence pay 3.5% instead of 5% stamp duty up to the first €175,000
Notarial fees depend on whether you are taking a home loan (due to added registration costs) and if the property you are purchasing falls within a registration area as specified by law. As an indication, notarial fees are normally between 1.5% and 2% of the contract price. Such fees will not include the property final searches and registrations and any other legalities. Any other taxes are borne by us.