Stamp duty

Stamp duty is one of the largest single costs a property buyer in Malta faces. Understanding the rate that applies — and any exemptions the buyer qualifies for — is fundamental to budgeting the upfront cost of a purchase.

The standard rate is 5% of the property's value. This applies to most second-time and subsequent purchases by buyers who don't qualify for an exemption.

First-time buyer exemption — buyers who have never owned residential property before benefit from an exemption on the first €200,000 of the purchase price. Stamp duty is paid only on the value above €200,000 (at the 5% rate). This produces meaningful savings — a €10,000 saving on a €300,000 property.

Second-time buyer benefit — second-time buyers (replacing one residential property with another, where the previous property is sold within a defined window) may qualify for a refund of stamp duty paid on the first €86,000 of the purchase price of the new property. The specific conditions and amounts are administered by the Inland Revenue Department.

Urban Conservation Areas (UCA) and Gozo properties — properties in designated Urban Conservation Areas or in Gozo may qualify for further reduced rates or additional benefits, intended to incentivise restoration and regional investment.

When stamp duty is paid. Under Maltese practice, stamp duty is paid in two stages:

• 1% provisional stamp duty — paid by the buyer at the Konvenju stage, within 21 days of signing the Promise of Sale, registered with the Inland Revenue Department
• Balance — paid at the final deed of sale, when the full transfer takes place

The notary calculates, collects, and remits stamp duty to the Inland Revenue Department on the buyer's behalf.

Sources

• Duty on Documents and Transfers Act, Chapter 364 of the Laws of Malta — statutory authority for stamp duty
• Inland Revenue Department of Malta — administration of stamp duty, first-time and second-time buyer schemes, current rates and exemptions