On acquiring and disposing of immovable property in Malta, any person, whether juridical or physical, is subject to taxation according to the Duty on Documents and Transfers Act, Chapter 364 of the Laws of Malta and the Income Tax Management Act, Chapter 372 of the Laws of Malta and the Income Tax Act, Chapter 123 of the Laws of Malta.

The Buyer

  • 5% Duty on Documents calculated on the purchase price of the immovable property

If the Buyer is a European Union Citizen declaring on deed that he shall reside in the property being purchased as his sole ordinary residence, then the preferential rate of 3.5% is applied on the first €150,000 of the price.

In respect of transfers of immovable property, made on or after the 5th November 2013 but before the 1st July 2015, no duty shall be chargeable on the first €150,000 of the aggregate value of the consideration paid for the acquisition of such property, provided that this is the first immovable property acquired inter vivos by such person.

The Seller:

What is the new rate of the final withholding tax on property and from when is it effective?
With effect from 1st January, 2015 the current system consisting of both a 12% final withholding tax on the transfer value and 35% tax on the profit or gain will be replaced by one final withholding tax of 8% on the value of the property transferred.