Stamp Duty on Property in Malta

1 min read

Stamp duty is payable on every transfer of immovable property in Malta and represents the single largest transaction cost a buyer will meet at the deed of sale. Unlike many jurisdictions, Malta has no annual property tax, which makes this one-off duty, together with notarial fees, the primary fiscal consideration when budgeting for a purchase. This guide sets out the current rates, the principal exemptions, and how the tax is calculated and paid.

The Standard Rate

The general rate of stamp duty on the transfer of immovable property in Malta is 5 per cent, calculated on the higher of the contract price or the property's open market value as agreed with the notary and, ultimately, the Commissioner for Tax and Customs. On a property purchased for €600,000, for example, duty at the standard rate would amount to €30,000.

Certain categories of property attract a reduced rate rather than the standard one. Property within an Urban Conservation Area, which covers much of Valletta, Mdina and the Three Cities, is charged at 2.5 per cent. Residential property purchased in Gozo benefits from a reduced rate under an incentive scheme that is renewed periodically by budget measure, so buyers should confirm the current position with their notary before relying on it.

The First-Time Buyers' Exemption

Since 28 October 2025, first-time buyers acquiring a residential property for use as their sole ordinary residence are exempt from stamp duty entirely on the first €200,000 of the transfer value, with the standard 5 per cent rate applying to any amount above that threshold. This replaced the previous arrangement, under which first-time buyers paid a reduced rate of 3.5 per cent on the same first tranche of value.

Eligibility turns on this being the first occasion on which the buyer acquires a residential property by lifetime transfer, rather than by inheritance, and on the property being their sole residence. A prior purchase of non-residential property, such as a garage or a field, does not affect first-time buyer status. Eligibility is verified by the notary against the public registry and declared at the deed.

A separate benefit, the First-Home Financial Support grant, provides €1,000 a year for ten years to first-time buyers, administered by the Housing Authority rather than through the stamp duty system itself. Budget 2026 placed both the exemption and the grant on a permanent legislative footing, removing the annual uncertainty that previously accompanied their renewal.

Scenario	Duty Payable
Standard buyer, €600,000 property	€30,000 (5% throughout)
First-time buyer, €280,000 property	€4,000 (0% on first €200,000, 5% on remaining €80,000)
Property in a UCA, €600,000 value	€15,000 (2.5% throughout)

Buyers Replacing Their Main Residence

A buyer who sells their primary residence and, within twelve months, acquires another to serve the same purpose may claim a refund of duty already paid on the first €86,000 of the new property's value, provided they own no other residential property. This relief has been extended to acquisitions made up to 31 December 2026 and is intended to prevent existing homeowners from being taxed twice in the ordinary course of moving house.

Relief for Vacant and Character Property

A further exemption applies to transfers made by 31 December 2026 of property that was constructed at least twenty years before the transfer, has stood vacant for at least seven years and remains vacant at the date of transfer, provided the property is situated within an Urban Conservation Area or was developed in accordance with recognised traditional Maltese architectural criteria. Where the conditions are met, the first €750,000 of the transfer value is exempt from duty. This measure is particularly relevant to buyers considering a house of character, a palazzo, or a farmhouse in need of restoration, categories in which Christie's International Real Estate Malta has particular expertise.

How Stamp Duty Is Paid

Stamp duty is settled in two instalments rather than as a single sum. Twenty per cent of the total is paid on signing the promise of sale, known locally as the konvenju, with the remaining eighty per cent due on the public deed of sale, at which point title formally transfers. The notary collects the duty on the buyer's behalf and remits it to the tax authorities as part of the registration process.

A Note on Timing

Maltese stamp duty rates and exemptions are reviewed at each annual budget, and thresholds have changed more than once in recent years. The rates set out above reflect the position following Budget 2026. Buyers should treat this guide as a starting point for the conversation with their notary, who will confirm the applicable rate and any relief for which a specific purchase qualifies, rather than as a substitute for that advice.

Frequently Asked Questions

What is the standard rate of stamp duty in Malta?

Five per cent of the higher of the purchase price or the property's market value, with reduced rates applying to property in Urban Conservation Areas, in Gozo, and under the first-time buyer and vacant-property exemptions described above.

When is stamp duty paid?

In two parts: twenty per cent at the promise of sale (konvenju) and the remaining eighty per cent at the deed of sale.

Does stamp duty apply to foreign buyers?

Yes. Stamp duty applies regardless of nationality or residence status. Non-EU buyers purchasing outside a Special Designated Area will also need to factor in the AIP permit process, covered in our guide to buying property in Malta.

This article forms part of our complete guide to property taxation in Malta. For inheritance duty, ground rent and freehold conversion, and the final withholding tax on sale, see the related guides linked from that hub.