Malta Property Tax Guide 2026

Overview — Property Taxation in Malta

Malta does not levy an annual property tax (no wealth tax on real estate). The main property-related taxes are transfer duty (payable by the buyer on acquisition) and final withholding tax (payable by the seller on disposal). Transfer duty is collected by the Commissioner for Revenue (CFR) through the Notary handling the transaction. Property transactions must be registered at the Land Registry within 30 days of the deed of transfer.

Transfer Duty — 5% to 8%

Transfer duty is payable by the buyer on the acquisition of immovable property located in Malta. The rate depends on the property type and value:

• Residential property: 5% on the first EUR 1.5 million of the purchase price, and 8% on the excess above EUR 1.5 million
• Commercial property: Generally 7-8% depending on location and type
• First-time buyers: Exempt from transfer duty on the first EUR 200,000 (reduced rates available for properties up to EUR 500,000)

Transfer duty is calculated on the higher of the purchase price or the market value as assessed by the CFR.

Stamp Duty — 0.5% to 2%

In addition to transfer duty, stamp duty of approximately 0.5% to 2% applies to various property-related documents and transactions:

• Deeds of transfer: Typically 0.5% on the consideration
• Mortgage deeds: 1-2% on the secured amount
• Leases and rental agreements: Varies based on term and rental value

Stamp duty rates vary depending on the nature of the document and transaction value.

Final Withholding Tax on Property Sales

The seller of immovable property is subject to 12% final withholding tax (FWT) on the sale price (not the gain). This is withheld by the buyer and remitted to the CFR at the time of transfer. The seller has no further tax liability on the transaction. Alternatively, the seller may elect to pay tax on the actual indexed gain at progressive rates if lower.

The primary residence is exempt from FWT if owned and occupied for at least 3 consecutive years prior to sale. In such cases, no tax is payable by the seller.

No Annual Property Tax

Unlike many jurisdictions, Malta does not impose an annual property tax on the ownership of real estate. Property owners are only subject to the once-off transfer duty on acquisition and the FWT on disposal. There is no recurring tax based on property value, making Malta attractive for property investors seeking to minimise holding costs.

FAQs

Is transfer duty payable on gifts of property?

Yes, transfer duty is generally payable on the transfer of immovable property by way of gift (donation), calculated on the market value of the property. Exemptions apply for transfers between spouses and direct descendants (children) under certain conditions.

Do non-residents pay higher transfer duty?

Non-residents are generally subject to the same transfer duty rates as residents. However, non-residents may require an Acquisition of Property Permit (AIP) from the Ministry of Finance for certain types of property acquisitions.

Disclaimer

This guide provides general information about Maltese property taxes for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Maltese tax advisor, notary, or the CFR directly for advice specific to your situation. InvestmentKit does not provide tax advice.