Property Tax in Malta: Stamp Duty, Rental Income Tax, and More

Long-term property ownership is significantly more cost-effective in Malta than in most EU countries. While Malta imposes transactional taxes and unique taxation schemes, you will not incur traditional annual taxes after buying a property.

In this guide, we’ll go over Malta’s unique property tax landscape to help you understand your obligations. We’ll cover:

• The prominent categories of property tax in Malta
• The most notable exceptions
• Key taxation considerations for expats

Does Malta Have a Property Tax?

Malta does not impose any annual property or municipal taxes. After buying a property, you won’t face yearly property levies or council rates, unlike in most other countries. This unique allowance means you can save a considerable amount of funds over the years or decades of owning a property.

Still, you should expect various one-time transaction taxes related to changes in ownership, as well as rental income taxes, which you should take into account if you plan on investing in rental property.

Stamp Duty on Property Purchases

When you buy Maltese property, you must pay a stamp duty (transfer duty) on the contract value. As of this writing, the standard stamp duty rate is 5% of the property’s price, which is paid in two installments:

Portion of Stamp Duty Due	Payment Milestone
1%	Within 21 days of signing the preliminary Promise of Sale agreement
4%	Upon final deed transfer

Given that the property’s market value doesn’t need to equal the price declared in the contract, stamp duty is calculated on the higher amount to discourage under-declaring and illegal tax minimization.

To further prevent tax avoidance, Maltese authorities may audit the declared price. If the official valuation is >15% higher than your price, they can levy additional duty on the difference, as well as a 20% penalty on the extra duty.

Stamp Duty Reliefs and Incentives for Buyers

Malta offers many generous incentives that reduce or completely eliminate stamp duty under specific circumstances. The most notable reliefs include:

• First-time home buyers: When you buy the first property as your sole and ordinary residence, you will receive a full exemption on the first €200,000 of the property’s value. The remainder is taxed at the standard stamp duty of 5%
• Second-time buyers: If you sell your primary residence to purchase another one, and you don’t own any additional property, you get a stamp duty refund on the first €86,000 of the new property price
• Donations to children: If you donate/gift a property to your child who does not own any real estate and will use the property as their primary residence, you do not pay stamp duty on the first €250,000 of the property’s value. The stamp duty on the excess value is 3.5%

Malta also encourages purchases of older or vacant real estate by removing the stamp duty on the first €750,000 if the property is:

• Located in an Urban Conservation Area (UCA)
• Over 20 years old and has been vacant for at least seven years
• Built in the traditional Maltese style

These incentive schemes are subject to specific conditions (such as timely filings or specific effective dates) and are updated annually through budget allocations. While the incentives are expected to remain effective in 2026 according to the proposed budget, make sure to review the available reliefs in the year of real estate purchase.

Malta Property Sale Tax and CGT

In 2015, Malta replaced the traditional CGT calculations and tax rates with a single Property Transfer Tax (PTT). The standard PTT is 8% on the sale value, and the tax is withheld by the notary upon deed signature. This means you receive the net proceeds with PTT excluded.

The PTT can vary under special circumstances, most notably:

• Resale within five years: If you sell a property within five years of purchasing it, and you haven’t made any significant development on it during this period, the PTT will be reduced to 5%
• Resale of primary residence within three years: If the property was your sole ordinary residence and you sell it within three years of purchase without owning additional real estate, the PTT is only 2%
• Sale of property acquired before 2004: Sales of property purchased before January 1, 2004, are taxed at a higher rate of 10% to account for the possibility of the property having appreciated untaxed under prior tax law. If a Promise of Sale was registered before November 17, 2014, but the sale occurs more than 12 years after the acquisition date, the PTT is 12%

Sales of inherited or donated property are also taxed under special rates, which depend on the inheritance date:

Inheritance Date	Transfer Tax
Before November 25, 1992	7% flat rate
After November 24, 1992	You may choose to pay 12% on the gain instead of the standard PTT on the entire value (which may be sensible if the property’s value is high)

PTT Exemptions for Property Sellers

Besides reducing PTT under different circumstances, Malta eliminates it altogether in situations involving changes in residence and specific family arrangements.

For instance, there is no transfer tax on a property you sell if:

• The property was your sole ordinary residence
• You resided in the property for at least three consecutive years
• You sell the property within 12 months of moving out

Maltese homeowners typically leverage this exemption when upgrading or downsizing homes. To do so, you must formally declare the property as your main residence to the tax authorities, which is done in the final deed of acquisition.

Transfers between family members are also exempt from PTT. You will not pay it if you transfer property to:

• Your spouse
• Descendants or ascendants in the direct line
• Former partner as part of a divorce or legal separation

High-net-worth individuals often hold property in corporate vehicles. If you are among them, you should familiarize yourself with the available concessions. For instance, moving a property into a wholly owned company or trust, or transfers between companies in a 100% group, may not incur the PTT. Still, various legal conditions may apply to such transfers, so it’s advisable to seek legal counsel before initiating them.

Tax on Rental Income From Property

If you earn rental income from Maltese property, you can choose to pay a 15% flat tax on gross rental income from both residential and commercial real estate. Alternatively, you can declare your net rental profits on a tax return and pay tax at your marginal rate.

The marginal rates for the 2025/26 tax year are as follows:

Annual Income	Individual Tax Rate
Up to €12,000	0%
€12,001–€16,000	15%
€16,001–€60,000	25%
Over €60,000	35%

You can choose your preferred taxation option each year. If you decide to include rental income in your personal income, you can deduct allowable expenses (like maintenance, management fees, interest, etc.), and only the profit is taxed at your marginal rate. Such deductions are not available with the flat 15% rate.

Tax on Inheritance and Property Transfers Upon Death

Malta does not impose estate, wealth, or inheritance tax per se. Instead, it applies the stamp duty on property transfers to descendants. According to the regulations, the descendant who receives the property is required to pay a 5% stamp duty.

Still, the stamp duty does not apply to direct family transfers. If a surviving spouse inherits the couple’s jointly owned residence after the other spouse dies, they pay no stamp duty on that transfer.

Similarly, when children inherit the primary residence of their parents, they are exempt from stamp duty provided they file the causa mortis documents within one year of the date of death.

These rules ensure that a family home can be passed down to immediate dependents without a tax burden and the related financial hardship.

Malta Property Taxes for Non-Residents

Malta’s property tax rules apply equally to locals and foreigners, so there are no additional buyer’s stamp duties or surcharges for non-resident buyers.

The country also has an extensive network of double taxation treaties with countries such as the U.S., UK, and Australia, which prevents the same income from being taxed twice. If you pay tax in Malta on rental income or on a property sale, your home country will generally credit that tax.

Note that purchasing a property in Malta as a foreigner won’t immediately make you a tax resident regardless of any taxes paid. All taxes discussed here are transaction-based and apply regardless of your residency in Malta. You will only become a tax resident if you relocate to Malta and satisfy the residency criteria, although the general tax treatment of your Maltese properties won’t change.

Manage Maltese Property Taxes Easily With Nomad Capitalist

Whether you’re looking for a residence in Malta or lucrative investment opportunities, our team at Nomad Capitalist can provide a structured, personalized strategy that minimizes your tax liabilities and helps grow your wealth more efficiently.

Nomad Capitalist is a consultancy firm that specializes in helping high-net-worth individuals seamlessly relocate across the globe and manage the specifics of their expatriation, including property-related matters.

We achieve this through the Action Plan—a long-term strategy that takes into account your unique financial and lifestyle circumstances to outline the pathway that meets your relocation goals. 

To receive a personalized Action Plan, you only need to complete a brief questionnaire that determines whether we are a good fit. If so, we will:

1. Schedule an onboarding call to understand your current situation and goals
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If you are ready to take action and make impactful changes, your Action Plan is waiting. Get your personalized strategy today!