Key facts
- General rate
- 8% of transfer value
- Acquired before 2004
- 10%
- Sold within 5 years
- 5%
- Own home (3+ years)
- Exempt
- In force since
- 1 January 2015
- Paid by
- The seller, via the notary
Most individuals selling property in Malta pay a final withholding tax of 8% of the transfer value. It is not a tax on profit: it is a flat percentage of the price, or of the market value if that is higher. Once the notary withholds it on the deed, the seller’s tax on that sale is settled.
Why Malta taxes the price, not the gain
Until 2015, sellers could choose between tax on the capital gain and a flat rate on the price. From 1 January 2015 Malta moved to a final withholding tax system for most property transfers. It is simpler for sellers — no need to reconstruct decades of improvement costs — and it gives buyers and sellers certainty on the deed.
Which rate applies?
| If… | Rate on the transfer value |
|---|---|
| No special rule applies | 8% |
| You acquired the property before 1 January 2004 | 10% |
| You sell within five years of acquiring it, and it is not part of a project or trade | 5% |
| It is your own residence, owned and occupied for at least three consecutive years | Exempt |
Other special rules exist — for example for transfers between spouses, certain inherited properties and properties restored in Urban Conservation Areas — so let your notary review your situation before you agree a price.
Worked examples
- An apartment in Sliema bought in 2012 and sold for €650,000. The 8% general rate applies: €52,000.
- A house of character bought in 1998 and sold for €1,200,000. Acquired before 2004, so 10%: €120,000.
- A penthouse bought in 2023 and resold in 2026 for €900,000, not as part of a development project: 5%, i.e. €45,000.
- The family home in Balzan, owned and lived in since 2015, sold after the family moves: exempt, provided the conditions are met.
How and when it is paid
- At the promise of sale, a provisional amount of tax is paid when the konvenju is registered.
- On the final deed, the notary withholds the balance from the price and pays it to the tax authorities.
- No further return is normally needed for that sale — the withholding is final.
Non-resident sellers
The final withholding tax applies to transfers of Maltese property whether the seller lives in Malta or abroad. If you are tax resident elsewhere, your home country may also tax the gain; double tax treaties generally give credit for Maltese tax, but take advice in both countries.
Getting the value right
The tax is charged on the higher of the price and market value, so an unrealistically low price does not reduce it — and it can trigger an assessment later. A realistic, evidence-based valuation protects you on both counts. Read how property valuation works in Malta, or ask us for a free valuation.
