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 2017 of any price, a reduced rate of 2% stamp duty instead of 5% is applicable. A garage of up to 30 square meters in same block can be added. Contract must be published by 31st December 2018.
– First time buyers (European Union citizens), who never bought any property worldwide, and who reside on the Maltese islands are exempt from paying any stamp duty on the first property they are acquiring on the first €150,000 of the price. Offer is valid up to end of 2017.
– Buyers who have other properties but are buying their main residence pay 3.5% instead of 5% stamp duty up to the first €150,000
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 1% and 1.5% of the contract price. Such fees will include the property final searches and registrations and any other legalities. Any other taxes are borne by us.