The stamp duty is currently at 3.5% on the first €150,000 of the immovable property price. This applies only on the purchase of one place of residence and subject to the purchaser having the intention to establish within the property his or her ordinary residence. (This does not apply for non EU citizens).
20% of the total stamp duty is payable on the promise of sale agreement, and the balance is payable on the deed of purchase. The balance is payable at the rate of 5%.
All Non-EU Nationals have to pay 5% in Stamp Duty on the value stated in the Final Deed of Sale. However EU citizens taking up permanent residence in Malta and who have sold their overseas properties and plan to use their Maltese home as their primary residence qualify to pay 3.5% on the first €150,000 instead of the 5%.
In 2014 the government launched an incentive for ' First-Time Buyers' where an exemption from stamp duty on the first €150,000 is being offered. This means that a maximum of €5,250 may be saved. Both foreigners and Maltese nationals can benefit from this scheme provided certain criteria are satisfied.
The criteria are as follows:
Property buyers who will acquire a home through transfer by inheritance, that will be used as the sole domestic residence;
Buyers who are purchasing their first house without ever having had any other property under their name; and
Non-residents who do not require a property acquisition permit.
The concession will apply for buyers who have registered a promise-of-sale agreement (konvenju) from July 2013 right up to the end of 2014.
For second home buyers, the stamp duty is that of 5%.