Malta’s 2025 Budget Measures: Steady Support for a Thriving Property Market

In a bid to maintain momentum in the property sector, Malta’s recently announced 2024 budget reaffirms a commitment to stability, offering continuity to various property incentives through 2025. While no brand-new initiatives were introduced, the government’s decision to extend existing schemes underscores a stable and supportive environment for buyers, sellers, and investors alike.

Key incentives aimed at first-time buyers and Urban Conservation Areas (UCAs) remain in place, providing a dependable foundation for those considering real estate investment in Malta. Here is an overview of the main property-related incentives that continue to shape Malta’s real estate landscape:

VAT Refund on Restoration Works

Property owners developing new properties in line with approved criteria or restoring properties in Urban Conservation Areas (UCAs) or those vacant for over seven years can benefit from a VAT refund of up to €54,000 on the first €300,000 spent on restoration and finishing. This initiative aims to preserve Malta’s architectural heritage while encouraging the revitalisation of older properties.

Stamp Duty Schemes for first and second-time buyers

The reduced stamp duty schemes for first- and second-time property buyers will remain in effect.

First-time buyers will continue to benefit from a stamp duty exemption on the first €200,000 of their property purchase, translating to a potential saving of up to €7,000. This exemption makes entering the property market more accessible for newcomers.

Second-time buyers are eligible for a refund on the duty paid on the first €86,000 of the value of their new property, with an increased threshold of €150,000 for individuals with disabilities or their guardians.

Stamp Duty Refund for Sellers Upgrading to a New Home

Sellers who reinvest in another residential property are eligible for a stamp duty refund of up to €3,000 (or €5,000 for those with special needs), provided they do not own any other property at the time of the purchase. This scheme supports upward mobility in the property ladder.

First-Time Buyers Incentives

€10,000 Grant for First-Time Buyers 

First-time buyers are also entitled to a €10,000 grant, spread over a decade, to aid in mortgage repayments. This grant applies to properties valued up to €500,000, giving new homeowners a long-term financial boost.

VAT Refund Scheme for Renovations

Extended through 2025, and applicable to both single and couples buyers, this VAT refund scheme aims to assist first-time buyers in building or renovating their homes

Generous Grants for Older-Type Properties

Buyers of older properties—those over 20 years old or situated in UCAs, or new builds using traditional Maltese architectural styles—are eligible for a grant of €15,000 for properties in Malta and €40,000 for those in Gozo. This incentive is designed to promote the purchase of unique, heritage-style homes.

Exemption from Capital Gains Tax and Stamp Duty

Buyers investing in properties meeting specific criteria, such as being over 20 years old and vacant for at least seven years or situated in a UCA, are eligible for exemptions on capital gains tax and stamp duty for the first €750,000 of the property’s value. This tax benefit supports both buyers and the revitalisation of older properties.

New Scheme for Redemption of Temporary Emphyteusis

An initiative to redeem temporary emphyteusis (long-term leases with the right to build) has been introduced, expanding eligibility to include a wider range of properties. This scheme addresses the ownership structure of properties with emphyteutic leases, facilitating their transition to outright ownership.

Malta’s Citizenship by Investment Programme

Beyond the existing and newly introduced property incentives, Malta remains one of the few EU countries offering a Citizenship by Investment Programme. This option attracts high-net-worth individuals and discerning investors,  seeking EU citizenship and enhances Malta’s reputation as a unique investment destination within the EU.

The Citizenship by Investment Programme positions Malta as a gateway to Europe, blending heritage with exceptional investment potential.

Stability and Opportunity in the Property Market

Christie’s International Real Estate Malta feels that such measures create an environment of opportunity, encouraging new buyers, supporting ongoing restoration projects, and rewarding those investing in the preservation of Malta’s architectural heritage.

For further details and assistance on navigating these incentives, please feel free to reach out.