Tips and Advice

Knowledge is power.

What are the expenses involved when buying or selling property in Malta?

A common complaint among first-time-buyers is that there is often a lack of transparency or clarity when it comes to the various expenses involved in property transactions. Encountering an unexpected expense can feel like a shock to the system - So here’s a list of things you’ll need to be aware of before you begin planning your property budget.

The Buyer:

  1. Stamp duty is imposed on buyers at a default rate of 5% of the purchase price. However, should the property be purchased as a primary and sole residence, then a special rate of 3.5% is charged on the first €150,000 and 5% on the excess. Right now there is also a government scheme for first-time-buyers who are buying a property as their sole residence. In such cases no tax whatsoever is levied on the first €150,000 of the purchase price.
  2. Notarial Fees and expenses- These fees and expenses are calculated according to law through the Billing calculator accessible from the Notarial Council’s website:
  3. Other expenses may include ground rent recognition fees (if any), bank charges (if a bank loan is being taken) and architect fees should any plans or permits be required.

The Seller:

  1. Final Withholding Tax is set at the default rate of 8% of the sale price. However, the rate of 10% is applicable if the property was acquired prior to the 1st January 2004; 5% is applicable if the property was acquired within the 5 years immediately preceding the sale (not applicable to projects); 2% is applicable if the property was purchased and occupied as a residence, but 3 years from the purchase date have not elapsed; and 0% is applicable if it concerns a sale of a residence owned and occupied for at least 3 years immediately preceding the sale.
  2. EPC Certificate costs.