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:
– 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 €200,000 of the price. Offer is valid up to end of 2023.
– Buyers who have other properties but are buying an additional property in Gozo pay 2% (instead of 5%) stamp duty which will apply up to the first €400,000. Scheme is valid until the end of December 2023.
– UCA developments will not pay any stamp duty.
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.