Key facts
- Stamp duty on purchase
- 5% (1% at promise of sale)
- Tax on sale
- 8% final withholding tax
- Rental income
- Optional 15% on gross rent
- Annual property / wealth tax
- None
- Inheritance
- 5% duty — no inheritance tax
- First-time buyers
- No duty on first €200,000
Malta does not tax the simple fact of owning a home. There is no council tax, no municipal property levy and no net wealth tax. Instead, tax arises at four points in a property’s life: when it is bought, sold, let or inherited. Each has its own rules, and each has exemptions that can save a considerable sum if you know about them in advance.
When you buy: stamp duty
The buyer pays duty on documents — universally called stamp duty — at a standard rate of 5% of the price (strictly, €5 for every €100 or part of it). It is paid in two instalments:
- 1% when the promise of sale is registered. The konvenju is the preliminary agreement signed once a price is agreed; the notary registers it with the tax authorities and collects this provisional duty.
- The remaining 4% on the final deed, when ownership passes to you.
Several schemes reduce this for EU buyers. First-time buyers pay no duty on the first €200,000 of the price, provided the home becomes their sole residence. Second-time buyers replacing their home can reclaim the duty paid on the first €86,000. Homes in Urban Conservation Areas have enjoyed further reductions. Non-EU buyers pay a flat 5% and do not qualify for these reliefs or the Urban Conservation Area benefits. Because several of these schemes are renewed year by year in the Budget, confirm the current position with your notary before you sign. Our stamp duty guide and first- and second-time buyer schemes cover the details.
When you sell: final withholding tax
Since 1 January 2015, most sales of Maltese property by individuals have been taxed through a final withholding tax on the transfer value — the higher of the agreed price and the market value — rather than on the gain. The notary deducts it on the deed and pays it over, and that settles the seller’s tax on the sale.
| Situation | Rate on the transfer value |
|---|---|
| General rule | 8% |
| Property acquired before 1 January 2004 | 10% |
| Sold within five years of purchase (not part of a project) | 5% |
| Your own residence, owned and occupied for at least three consecutive years | Exempt |
The exemption for your own home is the one most sellers rely on — and it has conditions, including when you vacate the property. See property transfer tax when selling for how the rates interact and what documents the notary will ask for.
When you let: 15% on gross rent, or the normal rates
Rental income is taxable in Malta, and owners can choose between two methods each year:
- A flat 15% on the gross rent — no deductions, no further tax, and a simple annual return. It has applied to residential lettings since 2014 and to commercial lettings since 2016, but not to rent paid by related parties.
- The ordinary progressive rates on the net rent, after deducting allowable expenses.
The choice covers all your qualifying rental income for that year. Landlords who register a long private residential lease of two years or more with the Housing Authority and choose the 15% method may also qualify for a tax rebate. Our rental income tax guide walks through both methods with a worked example, and letting your property in Malta covers the lease rules themselves.
When property is inherited: duty, not inheritance tax
Malta has no inheritance, estate or gift tax. When immovable property passes on death, however, the heirs pay duty on documents — generally 5% of the market value at the date of death — through a notarial declaration causa mortis. There are important reliefs:
- A surviving spouse inheriting the deceased’s share of their sole residence is exempt.
- Where an heir already lives in the inherited home as their sole residence, a reduced 3.5% rate applies to the first part of the value — raised by Budget 2026 to the first €400,000.
- Filing the declaration promptly matters: a small rebate is available within six months, and interest runs after a year.
Parents donating a home to their children can also benefit: no duty is charged on the first €250,000 where the property is used for residential purposes. Our guide to inheriting property in Malta explains the process.
If you become resident: how your wider income is taxed
For international buyers the bigger tax question is often not the property at all, but what happens to their worldwide income once they live in Malta. Individuals who are resident but not domiciled are taxed on Maltese income and on foreign income remitted to Malta — not on foreign income kept abroad, and not on foreign capital gains. A minimum tax of €5,000 a year applies where unremitted foreign income reaches €35,000. Special programmes such as the Global Residence Programme and the Malta Retirement Programme offer a flat 15% rate on remitted foreign income in exchange for a minimum annual tax. Start with non-dom taxation explained.
Planning points before you sign
- Budget the full cost of buying, not just the 5%: notary fees, searches and registration add further costs — see the costs of buying property in Malta.
- Check which scheme you qualify for before the promise of sale. Eligibility is usually tested on the date of the konvenju.
- Decide how you will hold the property — personally, jointly or through a company — with your advisor, because the tax treatment differs.
- Keep your purchase documents. When you eventually sell, the date and value of acquisition decide which withholding rate applies.
