Engel & Völkers Licence Partner Malta Regional Market Center > Blog > Malta Budget 2021 | Property Sector Overview

Malta Budget 2021 | Property Sector Overview

​Malta's Budget for 2021 highlighted a number of incentives related to the property sector. 

Duty exemption for First-Time Buyers

First time home buyers will be exempt on duty on the the first €200,000 (this was €175,000). This exemption is to be extended for another year effective immediately.  A number of properties are available in this price bracket, get in touch with us an an experienced agent will help you find your first home while benefitting from this exemption. 

Duty on acquisition or Inheritance of ordinary residence

When an individual inherits a property, up to €175,000, for them to reside, they would usually pay 3.5% duty on the property inherited. The maximum value has now increased to €200,000. This is also applicable to individuals purchasing their property of residence, even if they are not first time buyers. 

Reduction in duty for Second-Time Buyers

A refund up to  €3,000 (or €5,000 in the case of persons with special needs) is due to second time buyers, selling their first property to purchase another residential property. 

Duty on acquisition of property in an Urban Conservation Area

When acquiring a property located in an Urban Conservation Area, as a buyer you may benefit from a reduced rate on duty of 2% in comparison to that of 5%. 

Duty of acquisition of property in Gozo 

Individuals will benefit from a reduced rate of 2% from 5% on duty when acquiring property in Gozo. 

Economic Regeneration Plan

  • A reduced tax rate: 5% on the first  €400,000 of transfer value​
  • A reduced tax rate: 1.5% on the first  €400,000 of transfer value
    Of the property which was introduced to the Economic Regeneration Plan to apply in respect of the promise of sales registered up until 31st March 2021 and concluded by December 2021. 

Duty on donations of qualifying property

Duty is exempt on property which is donated for the purpose of ordinary residence up to €250,000. Any additional value, over  €250,000 shall be subject to duty at the rate of 3.5%. 

Final tax on the transfer of a promise of sale

Currently, the first €100,000 of gains or profits derived upon the transfer of any right acquired through a promise of sale agreement is subject to a final tax at a reduced rate of 15%. Going forward a reduced rate of tax, 15% shall be applicable to the full amount of gains or profits derived, for assignments effected during 2021.

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Engel & Völkers
Licence Partner Malta Regional Market Center
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Do you know how much your property is currently worth? No matter if you just want to inform yourself about the current market-price, or if you wish to sell your property for the best price: our experienced marketing experts are happy to assist you with a free and non-binding valuation.

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