Authored by the expert who managed and guided the team behind the Malta Property Pack
Everything you need to know before buying real estate is included in our Malta Property Pack
Buying property in Malta as a foreigner comes with specific costs, taxes, and fees that you need to understand before making your move.
Malta uses a relatively straightforward system where the main buyer expense is stamp duty at 5%, but foreigners must also navigate the AIP permit process if they want to purchase outside designated areas.
We constantly update this blog post to reflect the latest changes in Malta's property tax landscape, so you always have access to current information.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Malta.
Overall, how much extra should I budget on top of the purchase price in Malta in 2026?
How much are total buyer closing costs in Malta in 2026?
As of early 2026, total buyer closing costs in Malta typically range from 7% to 9% of the purchase price, which for a EUR 300,000 property means approximately EUR 21,000 to EUR 27,000 (roughly USD 22,000 to USD 28,500).
The minimum extra budget possible when keeping expenses to the bare legal minimum is around 6% of the purchase price, so for that same EUR 300,000 property, you would need at least EUR 18,000 (approximately USD 19,000) to cover the essential stamp duty, basic notary fees, and mandatory searches.
The maximum extra budget buyers should realistically plan for is about 10% of the purchase price, which translates to EUR 30,000 (around USD 31,500) for a EUR 300,000 property when accounting for higher-end notary fees, translation services, valuation reports, and the AIP permit fee if required.
The main factors determining whether your costs fall at the low or high end include whether you need an AIP permit (EUR 233 fee plus stricter conditions), how complex your notary's work becomes, and whether you require translation or interpreter services for the legal documents.
What's the usual total % of fees and taxes over the purchase price in Malta?
The usual total percentage of fees and taxes over the purchase price in Malta sits between 7% and 9% for most foreign buyers completing a standard residential transaction.
This realistic range of 7% to 9% covers everything from the most cost-conscious buyers who keep extras minimal to those who opt for additional professional services like independent legal review or property valuation.
Of that total percentage in Malta, roughly 5% goes to government taxes (the stamp duty), while the remaining 2% to 4% covers professional service fees including notary costs, searches, registrations, and any optional advisory services.
By the way, you will find much more detailed data in our property pack covering the real estate market in Malta.
What costs are always mandatory when buying in Malta in 2026?
As of early 2026, the mandatory costs when buying property in Malta include stamp duty (usually 5% of the property value), notary fees (typically 1% to 3%), notarial searches and registrations, and the AIP permit fee of EUR 233 if you are a non-EU foreigner required to obtain this permit.
Optional but highly recommended costs include an independent lawyer to review your purchase contract, a sworn translator or interpreter if you are not fully comfortable with Maltese or English legal documents, and a professional property valuation especially if you are financing the purchase or want to verify the asking price.
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What taxes do I pay when buying a property in Malta in 2026?
What is the property transfer tax rate in Malta in 2026?
As of early 2026, the property transfer tax rate for buyers in Malta is 5% of the property value, which is officially called the Duty on Documents and Transfers (commonly referred to as stamp duty).
There is no separate "foreigner surcharge" or additional transfer tax for foreign buyers in Malta, though foreigners who need an AIP (Acquisition of Immovable Property) permit face the EUR 233 permit fee and must comply with specific conditions including restrictions on renting out the property.
Buyers generally do not pay VAT on residential property purchases in Malta because the sale of immovable property is typically VAT-exempt, which is a notable simplifier compared to some other European countries.
Stamp duty in Malta is paid in two stages: a provisional duty of 1% at the promise of sale stage, and then the remaining balance (up to the full 5%) at the final deed stage when the property officially transfers to you.
Are there tax exemptions or reduced rates for first-time buyers in Malta?
First-time buyer relief exists in Malta and the Budget 2026 confirms this support is being enshrined in law, but here is the catch: most of these reduced duty schemes require that you do not need an AIP permit, which excludes many foreign buyers from eligibility.
If you buy property through a company instead of as an individual in Malta, the stamp duty framework can still apply but your overall tax picture becomes more complex, involving considerations around financing, rental income characterization, and corporate compliance that typically require professional tax advisory support.
There is no fundamental tax difference between buying a new-build property versus a resale property in Malta because both are generally VAT-exempt on the sale itself, though stamp duty still applies unless a specific relief fits your particular situation.
To qualify for first-time buyer exemptions in Malta, buyers must typically prove they have never owned property before, intend to use the property as their sole ordinary residence, and crucially, must not be required to obtain an AIP permit, which means this relief is often unavailable to non-EU foreigners.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Malta versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Malta in 2026?
How much does a notary or conveyancing lawyer cost in Malta in 2026?
As of early 2026, notary fees in Malta typically range from 1% to 3% of the property price, so for a EUR 300,000 property you would pay approximately EUR 3,000 to EUR 9,000 (roughly USD 3,150 to USD 9,500).
Notary fees in Malta are usually charged based on rule-based tables maintained by the Notarial Council, meaning they follow a structured calculation method rather than being purely negotiable flat rates.
Translation or interpreter services for foreign buyers in Malta typically cost between EUR 150 and EUR 400 (approximately USD 160 to USD 420) for a straightforward signing session, with costs increasing if you need certified translations of multiple documents.
A tax advisor in Malta is often optional for straightforward personal purchases, but if you are buying through a company or planning to rent out the property, budgeting EUR 300 to EUR 1,000 (approximately USD 315 to USD 1,050) for professional tax advice is a sensible precaution.
We have a whole part dedicated to these topics in our our real estate pack about Malta.
What's the typical real estate agent fee in Malta in 2026?
As of early 2026, real estate agent fees in Malta are typically around 5% of the sale price plus VAT, but here is the good news for buyers: this commission is commonly borne by the seller rather than the buyer.
In Malta, the standard market practice is that the seller pays the agency fee, which means as a buyer you generally do not have this cost added to your closing expenses unless you specifically hire a separate buyer's agent arrangement.
The realistic range for agent fees in Malta runs from about 3.5% to 5% plus VAT depending on the agency, the property value, and whether any special arrangements are negotiated, but again, this is typically the seller's expense rather than yours.
How much do legal checks cost (title, liens, permits) in Malta?
Legal checks in Malta, including title search, liens verification, and permits review, are typically bundled into the notary's work and search expenses, costing around EUR 300 to EUR 800 (approximately USD 315 to USD 840) as a separate line item on top of the notary's percentage fee.
A property valuation fee in Malta, if you want one or your bank requires it for mortgage purposes, typically costs between EUR 250 and EUR 600 (approximately USD 265 to USD 630) for a standard residential property.
The most critical legal check in Malta that should never be skipped is the notary's verification of clear title and any encumbrances, because Malta does not have a "title insurance" product like some countries, so your protection comes entirely from thorough due diligence before closing.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Malta.
Get the full checklist for your due diligence in Malta
Don't repeat the same mistakes others have made before you. Make sure everything is in order before signing your sales contract.
What hidden or surprise costs should I watch for in Malta right now?
What are the most common unexpected fees buyers discover in Malta?
The most common unexpected fees buyers discover in Malta include condominium or common-area charges (especially sinking funds for lifts and facade works), ground rent or emphyteusis issues on older properties, regularization costs if previous owners made unpermitted alterations, and utility account transfer deposits.
Malta does not have annual property tax liens like some countries, but buyers can inherit unpaid utility bills or condominium arrears if proper due diligence is not conducted before closing, so insisting on clearance certificates is essential.
While outright scams with fake listings are relatively uncommon in Malta's established real estate market, buyers should be cautious about "urgent deposit" requests outside the standard promise-of-sale and notary channel, and should always verify property ownership through official channels.
Fees that are usually not disclosed upfront by sellers or agents in Malta include upcoming condominium special levies for planned building works, minor permit irregularities that need rectification, and the full scope of common-area maintenance obligations.
In our property pack covering the property buying process in Malta, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Malta?
When buying a tenanted property in Malta, the main extra costs are legal or administrative rather than a special tax, and you should budget EUR 300 to EUR 800 (approximately USD 315 to USD 840) for legal advice on the lease transfer and your obligations as the new landlord.
As a buyer of a tenanted property in Malta, you inherit the existing lease agreement and must honor its terms until lawful termination, and you also become responsible for registering the lease with the Housing Authority if it is not already registered.
Terminating an existing lease immediately after purchase in Malta is generally not possible because tenant protection laws require proper notice periods and legitimate grounds, so you should assume you will inherit the tenancy for its remaining duration.
A sitting tenant in Malta can affect the property's market value and your negotiating position, often resulting in a discount of 5% to 15% because investor buyers factor in the reduced flexibility and potential vacancy risk when the lease eventually ends.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Malta.
We have made this infographic to give you a quick and clear snapshot of the property market in Malta. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Malta?
Which closing costs are negotiable in Malta right now?
The negotiable closing costs in Malta are limited mainly to optional professional services, such as the choice of valuation provider, translator, or independent legal advisor, where you can compare quotes and potentially save a few hundred euros.
Fixed costs that cannot be negotiated in Malta include stamp duty (it is a government tax set at 5%), the AIP permit fee (EUR 233 if applicable), and notary fees which follow established calculation methods set by the Notarial Council.
On the negotiable items, buyers in Malta can realistically achieve savings of 10% to 20% by comparing service providers, but the overall impact on total closing costs is modest since the big-ticket item (stamp duty) is completely non-negotiable.
Can I ask the seller to cover some closing costs in Malta?
The likelihood of a seller agreeing to cover some closing costs in Malta is moderate, especially because the market norm already has sellers covering agency fees, which creates an opening to negotiate price adjustments that effectively absorb part of your closing burden.
Sellers in Malta are most commonly willing to help with costs indirectly by accepting a lower purchase price rather than directly paying your taxes or notary fees, since the legal mechanics make price negotiation simpler than cost-shifting.
Sellers are more likely to accept covering closing costs or reducing prices in Malta when market conditions favor buyers, the property has been listed for a long time, or when the seller is motivated by personal circumstances such as relocation or estate settlement.
Is price bargaining common in Malta in 2026?
As of early 2026, price bargaining is common and expected in Malta's residential property market, though transparency is limited because there is no comprehensive public price register, so buyers should treat negotiation rules of thumb as market heuristics rather than guarantees.
Buyers in Malta typically negotiate between 3% and 6% below the asking price for standard resale homes, which on a EUR 300,000 property means potential savings of EUR 9,000 to EUR 18,000 (approximately USD 9,500 to USD 19,000), and in cases of motivated sellers or overpriced listings, discounts can reach up to 8%.
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What monthly, quarterly or annual costs will I pay as an owner in Malta?
What's the realistic monthly owner budget in Malta right now?
A realistic monthly owner budget in Malta, excluding mortgage payments, typically ranges from EUR 200 to EUR 500 (approximately USD 210 to USD 525) depending on your property type and location.
The main recurring expense categories that make up this monthly budget in Malta include condominium or common-area charges (for apartments), utilities such as electricity, water, and internet, home insurance, and a sensible maintenance reserve for unexpected repairs.
The realistic low-to-high range for monthly owner costs in Malta runs from about EUR 150 (USD 160) for a modest apartment with low condo fees to EUR 600 or more (USD 630+) for a larger property or one in a building with extensive amenities and higher maintenance obligations.
The monthly cost that tends to vary the most in Malta is condominium charges, because these depend heavily on building age, amenities like lifts and pools, and whether major works such as facade restoration are being funded through the sinking fund.
You can see how this budget affect your gross and rental yields in Malta here.
What is the annual property tax amount in Malta in 2026?
As of early 2026, Malta does not impose an annual local council or municipal property tax for typical owner-occupiers, which means your annual property tax line is often EUR 0 in the way most foreigners would expect from countries with council tax systems.
Because there is no recurring annual property tax in Malta, there is no low-to-high range to report for this expense category, though you should not confuse this with the absence of other ongoing costs like condo fees, utilities, and insurance.
Property tax in Malta is not calculated annually based on cadastral or market value like in many European countries; instead, the government collects transfer taxes (stamp duty) when properties change hands and taxes any rental income generated from the property.
There are no specific annual property tax exemptions to discuss in Malta since the tax simply does not exist for residential owners, but certain reliefs may apply to stamp duty at purchase if you meet specific criteria like first-time buyer status without requiring an AIP permit.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Malta. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Malta in 2026?
What tax rate applies to rental income in Malta in 2026?
As of early 2026, landlords in Malta can opt for a 15% final withholding tax on gross rental income, which is a straightforward flat rate that simplifies compliance for most property owners.
If you choose the 15% final withholding tax option in Malta, you generally cannot deduct expenses from your rental income because this rate applies to the gross amount, though if you declare rental income through the normal tax return instead, deductions may be possible under the relevant rules.
The realistic effective tax rate for typical landlords in Malta is 15% of gross rent if they opt for the final withholding system, or potentially lower if they use the standard tax return route with allowable deductions, though the latter requires more paperwork and documentation.
Foreign property owners in Malta are subject to the same 15% final withholding tax option on rental income as residents, with no additional foreigner-specific rate, but there is a critical restriction: if you bought under an AIP permit, you generally cannot rent out the property at all.
Do I pay tax on short-term rentals in Malta in 2026?
As of early 2026, short-term rental income in Malta is subject to taxation and you can use the same 15% final withholding option available for long-term rentals, but short-lets come with additional compliance obligations including the eco contribution charged per tourist stay.
Short-term rental income is not taxed at a fundamentally different rate than long-term rental income in Malta, but the practical difference lies in the added requirements: you must collect and remit the environmental contribution per guest stay, comply with Malta Tourism Authority registration, and potentially deal with VAT implications depending on how your activity is classified.
Here's our complete article on how to start an Airbnb in Malta.
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If I sell later, what taxes and fees will I pay in Malta in 2026?
What's the total cost of selling as a % of price in Malta in 2026?
As of early 2026, the total cost of selling a property in Malta typically ranges from 10% to 13% of the sale price when combining the seller's withholding tax and agency commission.
The realistic low-to-high percentage range for total selling costs in Malta runs from about 8% (if you qualify for seller-side tax exemptions) to around 14% or more if you have higher agency fees and no exemptions apply.
The specific cost categories that make up this total in Malta include the final withholding tax on transfer value (commonly 8%), real estate agency commission (typically 5% plus VAT which the seller pays), and any legal or notarial fees for the seller's side of the transaction.
The single largest contributor to selling expenses in Malta is usually the 8% final withholding tax on the transfer value, though for properties sold quickly or at high prices, the agency commission can also represent a substantial amount.
What capital gains tax applies when selling in Malta in 2026?
As of early 2026, Malta uses a final withholding tax system rather than a traditional capital gains tax on property sales, with the commonly stated general rate being 8% of the transfer value (not the profit), though different rates may apply based on holding period and acquisition date.
Exemptions to this seller tax in Malta exist for certain owner-occupied properties and specific circumstances such as long holding periods or properties acquired before certain dates, so it is worth consulting a tax advisor to see if your situation qualifies for reduced rates or exemptions.
Foreign property owners in Malta do not pay a higher capital gains rate than residents; the system does not impose nationality-based surcharges, though your regulatory status (such as having bought under an AIP permit) may affect other aspects of your ownership and sale.
The seller's tax in Malta is calculated on the transfer value (the sale price) rather than the profit, which differs from traditional capital gains calculations; this means you pay 8% of what you sell for, not 8% of the difference between your purchase and sale price.
We made this infographic to show you how property prices in Malta compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Malta, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| Malta Tax and Customs Administration (MTCA) - Buying Property | It's the Maltese tax authority explaining buyer and seller tax steps. | We used it for the official payment timeline from promise of sale to final deed. We also anchored the 5% stamp duty and 1% provisional duty mechanics from this source. |
| MTCA - AIP FAQ | It's the government's official guidance for non-resident permits. | We used it to confirm the EUR 233 AIP permit fee and the rule that AIP properties generally cannot be rented out. We also referenced its minimum price thresholds for foreigner eligibility. |
| PwC Malta - Property Tax and Duty | PwC is a major audit and tax firm with structured summaries. | We used it to triangulate the standard 5% duty and identify common relief scenarios. We also verified that many reliefs do not apply if you require an AIP permit. |
| PwC Malta - VAT on Immovable Property | It's a Big-4 VAT technical note with high-quality analysis. | We used it to confirm that property sales are generally VAT-exempt in Malta. We also clarified how VAT may apply to short-let accommodation services. |
| Notarial Council of Malta - Billing Calculator | It's the official notarial body's tool for fee calculation. | We used it to support that notary fees follow rule-based tables. We justified our 1% to 3% notary fee range using this official resource. |
| Frank Salt Real Estate | It's one of Malta's largest established agencies with practical guides. | We used it to triangulate real-world buyer expenses and closing cost breakdowns. We also confirmed that agency fees are typically paid by the seller. |
| MTCA - Manual on Taxation of Rental Income | It's an official MTCA technical manual on rental taxation. | We used it to confirm the 15% final withholding tax option on rental income. We explained the gross versus deductions trade-off based on this source. |
| MTCA - New Property Tax System FAQ | It's the tax authority's explainer for the seller's transfer tax. | We used it to confirm the seller's 8% final withholding tax on transfer value. We explained who pays what at closing using this official guidance. |
| Malta Tourism Authority - Environmental Contribution | It's the official tourism authority page for the eco contribution. | We used it to explain the eco contribution charged per tourist stay for short-lets. We highlighted this as a common surprise cost for Airbnb operators. |
| Sciberras Advocates | It's a law firm article that clearly summarizes the tax system. | We used it to corroborate that there is no VAT on property sales and no annual municipal property tax. We treated it as a secondary cross-reference source. |
| Ministry for Finance - Budget Speech 2026 | It's the official Maltese government budget document for 2026. | We used it to confirm that first-time buyer support is being enshrined in law. We timestamped our article as reflecting early 2026 policy direction. |
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