Getting Down to the Nitty Gritty of Property Taxation

Here at 77 Great Estates, we acknowledge the fact that purchasing a property can come with its fair share of stress accompanied by piles upon piles of paperwork. That’s why we thought it would be useful to provide our avid readers with a concise summary of Property Related Taxes.

First time buyers are exempt from stamp duty

Individuals buying their first residential property currently benefit from a stamp duty exemption on the first €150,000 paid.

They can also benefit from Restoration Grants

New schemes will be launched whereby first time buyers of immovable property situated within an Urban Conservation Area or certain scheduled properties will benefit from a grant of up to €100,000 on expenses incurred on the restoration of the said property.

Stamp duty reduction on Gozo properties

Buyers who purchase a residential property in Gozo by the end of 2018, will benefit from a reduction in the stamp duty rate from 5% to 2%, provided that the Promise of Sale agreement is registered with the Inland Revenue Department by the end of 2017.

Tax on transfers of inherited property

Transfers of inherited property made by means of a judicial sale by auction are currently chargeable to tax as follows:

7% final tax charged on the transfer value if the property being transferred was inherited before the 25th November 1992;


The applicable marginal rates on the gain derived (subject to 7% provisional tax) if the property being transferred was inherited after the 24th November 1992.
As a measure to simplify the tax collection process and to achieve parity of treatment between heirs, all transfers of inherited property by means of a judicial sale by auction will now be subject to a final tax at the rate of 7% on the transfer value.

Registration of rental contracts

Following the introduction of the favourable 15% tax regime on the rental of residential and commercial property, an anti-abuse measure is being introduced whereby all property rental contracts (including renewals) for a duration of at least three months, are required to be registered with the Inland Revenue Department either by the lessor or by the lessee. In the absence of registration, the lessor will be subjected to the penalties contemplated by law.

So there you have it, a quick recap of the main local taxations every purchaser needs to know about before taking that big step of property purchase and investment.

If you’re interested in purchasing a property within the next year or two, we encourage you to contact us today. 77 Great Estates has an extensive property portfolio, both in Malta and Gozo. Our reputable estate agency in Malta will make sure to keep you updated on said developments.

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