Key facts
- Direct purchase by a company
- Duty at 5% of the higher of price and market value
- Buying shares in a property company
- Duty can apply at 5% where most assets are property
- Residency programmes
- Usually require personal ownership — check
- Advice
- Speak to a Maltese tax adviser first
Buyers sometimes hold Maltese property through a company — for estate planning, for investment portfolios or for business use. This guide is an overview; always take advice from a Maltese tax adviser before you decide.
Duty on a direct purchase
A company that buys Maltese property pays duty on documents and transfers on the deed at the standard 5% of the higher of the price and market value — the same as an individual — with limited exemptions, for example for certain intra-group transfers. The supply of residential property is exempt from VAT.
Buying shares in a property company
Instead of buying a property, you might buy the shares of a company that owns it. Malta taxes this too: where a company’s assets are mainly immovable property (more than 75%), share transfers can attract duty at 5% of the market value of the shares, calculated with the property at market value. Exemptions exist in specific cases.
Things to weigh
- Company running costs — accounting, audit, registered office.
- Tax on rental income and on a future sale at company level.
- Bank finance — lenders treat company purchases differently.
- Residency programmes — MPRP and GRP have their own rules on how property must be held.
The process
The notary still carries out the searches and publishes the deed; the company acts through its authorised representatives. See the role of the notary.
