Authored by the expert who managed and guided the team behind the Malta Property Pack
Yes, the analysis of Valletta's property market is included in our pack
Buying property in Valletta as a foreigner comes with specific costs, taxes, and fees that can catch first-time buyers off guard.
This guide breaks down everything you need to budget for in early 2026, from stamp duty and notary fees to hidden charges that sellers rarely mention upfront.
We constantly update this blog post to reflect the latest regulations and market conditions in Malta's capital.
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 Valletta.
Overall, how much extra should I budget on top of the purchase price in Valletta in 2026?
How much are total buyer closing costs in Valletta in 2026?
As of early 2026, total buyer closing costs in Valletta typically range from 7% to 9% of the purchase price, which means if you buy a property for €500,000, you should expect to pay an extra €35,000 to €45,000 (roughly $38,000 to $49,000 USD).
At the absolute minimum, if you keep expenses to the bare legal essentials in Valletta, you could get away with around 6% to 7% of the purchase price, or approximately €30,000 to €35,000 ($33,000 to $38,000 USD) on a €500,000 property.
However, if you want to be prudent and account for all potential fees in Valletta, including complex title searches, heritage property complications, and professional advice, you should budget up to 10% to 12%, meaning €50,000 to €60,000 ($55,000 to $65,000 USD) on a €500,000 purchase.
The main factors that determine whether your Valletta closing costs fall at the low end or high end include the property's heritage status, whether it sits in an Urban Conservation Area (UCA), the complexity of the title history, whether you need an AIP permit as a foreigner, and how much professional support you require from architects and tax advisors.
What's the usual total % of fees and taxes over the purchase price in Valletta?
For most foreign buyers purchasing residential property in Valletta, the usual total percentage of fees and taxes over the purchase price lands around 7% to 9%.
The realistic low-to-high range that covers most standard Valletta property transactions is between 6% on the simple side and 12% when everything is complicated.
Of that total, government taxes (mainly stamp duty at around 5%) make up the biggest chunk, while professional service fees like notary, legal searches, and permits typically account for the remaining 2% to 4%.
By the way, you will find much more detailed data in our property pack covering the real estate market in Valletta.
What costs are always mandatory when buying in Valletta in 2026?
As of early 2026, the mandatory costs when buying property in Valletta include stamp duty (usually 5% of the property value), notary fees for conveyancing (typically 1% to 2%), title and property searches (around €500 to €1,500), and an AIP permit fee of €233 if you are a non-resident foreigner who needs one.
Beyond these required expenses, optional but highly recommended costs for Valletta buyers include an independent building survey by an architect (especially important given the old heritage buildings), sworn translation services if needed, and a tax advisor consultation if you plan to rent out the property or structure the purchase through a company.
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What taxes do I pay when buying a property in Valletta in 2026?
What is the property transfer tax rate in Valletta in 2026?
As of early 2026, the main property transfer tax for buyers in Valletta is stamp duty (officially called "duty on documents and transfers"), which is set at a flat rate of 5% of the property's value or the declared purchase price, whichever is higher.
There is no extra stamp duty surcharge specifically for foreigners buying property in Valletta, though non-residents typically need an AIP permit that costs €233 to obtain.
Residential property purchases in Malta are generally VAT-exempt, so you will not pay VAT on top of the property price in Valletta, although you may pay VAT on related services like estate agent commissions.
Stamp duty in Valletta is typically paid in two stages: 20% of the total duty (which equals 1% of the property price) is due when you sign the promise of sale, and the remaining 80% (4% of the property price) is paid when you sign the final deed of transfer.
Are there tax exemptions or reduced rates for first-time buyers in Valletta?
First-time buyers purchasing property in Valletta can benefit from a stamp duty exemption on the first €200,000 of the property's value, which can save you up to €10,000, provided the property will be your sole residence and you complete the purchase by the scheme deadline.
If you buy property through a company instead of as an individual in Valletta, the tax treatment changes significantly, particularly for rental income and eventual sale, which is why most foreign investors consult a tax advisor before deciding on ownership structure.
In Valletta specifically, there is often no major tax difference between new-build and resale properties for regular buyers, but properties in Urban Conservation Areas or those over 20 years old and vacant for 7 years can qualify for special exemptions on the first €750,000.
To qualify for first-time buyer exemptions in Valletta, you must not have owned property in Malta before, you must declare the property as your sole residence, and you typically need to file the appropriate documentation with the notary before the scheme's deadline.
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 Valletta in 2026?
How much does a notary or conveyancing lawyer cost in Valletta in 2026?
As of early 2026, notary fees in Valletta typically range from 1% to 2% of the property price, so for a €400,000 apartment you would pay around €4,000 to €8,000 (approximately $4,400 to $8,800 USD), plus small disbursements for searches and registrations.
Notary fees in Malta are regulated and standardized through the Notarial Council, meaning they are charged as a percentage of the property price rather than as an arbitrary flat rate, which gives buyers some predictability.
Translation or interpreter services for foreign buyers in Valletta typically cost between €200 and €800 (around $220 to $880 USD), depending on whether you need simple document support or multiple sessions with sworn translations.
A tax advisor is not mandatory for a simple owner-occupier purchase in Valletta, but if you plan to rent out the property or buy through a company, you should budget €500 to €2,000 ($550 to $2,200 USD) for a proper consultation.
We have a whole part dedicated to these topics in our our real estate pack about Valletta.
What's the typical real estate agent fee in Valletta in 2026?
As of early 2026, the typical real estate agent fee in Valletta is around 5% of the property price plus 18% VAT, which on a €400,000 property would be approximately €23,600 (around $26,000 USD) including VAT.
In Valletta and across Malta, the agent commission is most commonly paid by the seller rather than the buyer, although this can vary depending on the deal structure and agency agreement.
The realistic low-to-high range for agent fees in Valletta spans from around 3% (for high-value properties where commission is negotiated down) to 5% plus VAT as the standard, though some premium services may charge slightly more.
How much do legal checks cost (title, liens, permits) in Valletta?
Legal checks in Valletta, including title searches, liens verification, and permits review, typically cost between €500 and €1,500 (around $550 to $1,650 USD) for straightforward properties, though complex cases with old titles or heritage constraints can run €2,000 to €3,000 or more.
If you need a formal property valuation in Valletta, which is usually required for mortgage financing, expect to pay between €300 and €600 (approximately $330 to $660 USD), with higher fees for unusual or large properties.
The most critical legal check that should never be skipped in Valletta is the title search and ownership verification conducted by your notary, because older properties in the historic center can have complicated ownership histories, shared walls, or unresolved encumbrances.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Valletta.
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What hidden or surprise costs should I watch for in Valletta right now?
What are the most common unexpected fees buyers discover in Valletta?
The most common unexpected fees buyers discover in Valletta include ground rent redemption costs (if the property sits on leased land), condominium catch-up contributions for deferred building maintenance, heritage compliance paperwork for UCA properties, and restoration surprises like damp treatment or stonework repairs that only become apparent after purchase.
In Malta, you generally will not inherit unpaid property taxes since there is no annual property tax, but you should always have your notary confirm there are no outstanding debts, legal burdens, or unpaid utility bills attached to the property before completing the purchase.
Scams with fake listings or fake fees do exist in Valletta as in any high-demand market, so you should always work with a reputable licensed agency, pay key monies through traceable bank channels, and rely on your notary as the legal gatekeeper for all payments.
Fees that sellers or agents in Valletta usually do not disclose upfront include notary disbursements for registry extracts and corrections, architect survey costs that emerge after initial viewings, and condominium reserve fund contributions if the building has pending repair works.
In our property pack covering the property buying process in Valletta, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Valletta?
If the Valletta property you buy has an existing tenant, there are no specific extra government fees, but you may face additional legal review costs of €300 to €1,000 (around $330 to $1,100 USD) to properly assess the lease terms and your obligations as the new landlord.
When you purchase a tenanted property in Valletta, you inherit the existing lease agreement and all its terms, which means you must honor the tenant's right to stay until the lease expires or follow the legal procedures to terminate.
Terminating an existing lease immediately after purchase in Valletta is generally not possible unless the lease specifically allows for it or you negotiate a buyout with the tenant, because Maltese law protects sitting tenants under valid contracts.
A sitting tenant in Valletta typically reduces the property's immediate appeal to owner-occupiers, which can give you negotiating leverage on price, but it may also mean accepting lower rental income if the existing rent is below current market rates.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Valletta.
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 Valletta?
Which closing costs are negotiable in Valletta right now?
The closing costs that are negotiable in Valletta include the real estate agent commission (especially on higher-value properties), the scope of notary work beyond the standard regulated fee, and to some extent the price you pay for professional services like architects and tax advisors.
Closing costs that are fixed by law and cannot be negotiated in Valletta include the stamp duty rate (set at 5% by legislation), the AIP permit fee (fixed at €233), and government registry fees for property registration.
On negotiable fees in Valletta, buyers can realistically achieve discounts of 10% to 20% on agent commissions for expensive properties, and you can control notary costs by agreeing on a clear scope of work upfront to avoid surprise "extras."
Can I ask the seller to cover some closing costs in Valletta?
In Valletta's property market, it is relatively uncommon for sellers to agree to cover buyer closing costs directly, but you can certainly ask, especially if the property has been on the market for a while or needs significant work.
The closing costs that sellers in Valletta are most commonly willing to cover, or factor into price negotiations, are their own agent commission (which they already pay) and occasionally notary disbursements or minor administrative fees.
Sellers in Valletta are more likely to accept covering closing costs or reducing the price when market conditions are slower, the property has unique challenges like heritage restrictions or needed repairs, or when they are motivated to sell quickly.
Is price bargaining common in Valletta in 2026?
As of early 2026, price bargaining is possible in Valletta but tends to be more limited than in less sought-after areas because supply is constrained in the historic capital and heritage properties are in steady demand.
Buyers in Valletta typically negotiate around 3% to 7% below the asking price for well-presented properties with clean paperwork, while properties needing major renovation or with legal complications may see discounts of 8% to 12%, which on a €500,000 property means savings of €15,000 to €60,000 ($16,500 to $66,000 USD).
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What monthly, quarterly or annual costs will I pay as an owner in Valletta?
What's the realistic monthly owner budget in Valletta right now?
A realistic monthly owner budget in Valletta, excluding any mortgage payments, typically ranges from €150 to €400 (approximately $165 to $440 USD), depending on whether you own an apartment with shared building costs or a standalone townhouse.
The main recurring expense categories that make up this monthly budget in Valletta include condominium or common area fees, building insurance contributions, utilities reserves, and a sensible maintenance fund for the older heritage buildings.
The realistic low-to-high range for monthly owner costs in Valletta spans from around €100 ($110 USD) for a simple apartment with minimal shared expenses to €500 or more ($550 USD) for larger properties or buildings with lifts, concierge services, or major ongoing restoration works.
The monthly cost that tends to vary the most in Valletta is the condominium fee, because it depends heavily on the building's age, shared infrastructure like lifts or central systems, and whether any major repair works are planned or ongoing.
You can see how this budget affect your gross and rental yields in Valletta here.
What is the annual property tax amount in Valletta in 2026?
As of early 2026, Malta does not have a broad annual property tax or council tax like many other countries, which means Valletta property owners do not face a yearly government property levy simply for owning their home.
Because there is no annual property tax in Valletta, there is no low-to-high range to quote, though owners may still have recurring costs like ground rent (typically €40 to €250 per year if the land is leased) and building-related charges.
Since Malta has no annual property tax, there is no cadastral value or market value calculation used to determine a yearly bill, and the main tax points occur at transaction (stamp duty) and on income (rental tax).
There are no specific exemptions or reductions for annual property tax in Valletta because the tax simply does not exist, making Malta unusually attractive compared to countries where annual property taxes can add thousands to ownership costs each year.
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 Valletta in 2026?
What tax rate applies to rental income in Valletta in 2026?
As of early 2026, landlords in Valletta can choose to pay a flat 15% final tax on gross rental income, which is simple and requires no deductions or complex calculations.
Under the 15% flat rate option in Malta, landlords cannot deduct expenses like maintenance, management fees, or interest, but they can alternatively declare rental income on their standard tax return and potentially deduct allowable expenses if that results in a lower effective tax.
The realistic effective tax rate range for typical landlords in Valletta is between 15% (if using the flat rate) and potentially lower if you have significant deductible expenses and fall into a lower marginal tax bracket under the standard declaration method.
Foreign property owners in Valletta pay the same rental income tax rates as residents, with no additional foreigner surcharge, and Malta's double taxation treaties with many countries help prevent being taxed twice on the same rental income.
Do I pay tax on short-term rentals in Valletta in 2026?
As of early 2026, short-term rental income in Valletta is fully taxable, and landlords must also collect and remit an eco-contribution of €0.50 per adult guest per night (capped at €5 per continuous stay) to the Malta Tourism Authority.
Short-term rental income in Valletta is taxed the same as long-term rental income, meaning you can use the 15% flat tax option, but the operational compliance is more complex because you must register for the eco-contribution, keep guest records, and file periodic reports.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Valletta.
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If I sell later, what taxes and fees will I pay in Valletta in 2026?
What's the total cost of selling as a % of price in Valletta in 2026?
As of early 2026, the total cost of selling a property in Valletta typically ranges from 13% to 15% of the sale price when you combine the seller's property transfer tax and estate agent commission.
The realistic low-to-high range for total selling costs in Valletta spans from around 10% (if you negotiate a lower agent fee and qualify for reduced tax rates) to 16% or more (if complications arise or you use premium agency services).
The specific cost categories that make up Valletta selling expenses include the property transfer tax (commonly 8% on the sale value), estate agent commission (typically 5% plus VAT), notary fees for the sale deed, and potentially early mortgage repayment charges if you have financing.
The single largest contributor to selling expenses in Valletta is usually the 8% property transfer tax (also called final withholding tax), which is withheld by the notary from the sale proceeds before you receive your money.
What capital gains tax applies when selling in Valletta in 2026?
As of early 2026, Malta does not use a traditional capital gains tax for property sales but instead applies a final withholding tax (property transfer tax) of 8% on the sale value in most standard cases, regardless of whether you made a profit.
Exemptions to this 8% tax exist in Valletta for certain situations, including properties held for a long period, inherited properties (which may opt for a 12% tax on the gain instead), and properties in Urban Conservation Areas that qualify for special relief schemes.
Foreigners selling property in Valletta do not pay an extra capital gains rate compared to Maltese residents, as the property transfer tax applies based on the property and transaction characteristics rather than the seller's nationality.
Unlike traditional capital gains calculations, Malta's 8% property transfer tax is applied to the full sale value rather than the profit (sale price minus purchase price), though some exceptions allow sellers to opt for a 12% rate on the actual gain in specific circumstances.
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 Valletta, 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) | Official government tax authority for Malta. | We used it to confirm stamp duty rates and payment timing. We relied on it as our primary source for all buyer-side tax figures. |
| MTCA AIP Permit FAQ | Official government source for foreigner permit rules. | We used it to confirm the €233 AIP permit fee. We also used it to explain minimum property values for permit eligibility. |
| Notarial Council of Malta | Official professional body regulating notary fees. | We used it to anchor notary costs as regulated. We referenced their calculator to justify our fee percentage ranges. |
| NSO Malta (National Statistics Office) | Malta's official statistics office for market data. | We used it to understand 2025 price trends. We referenced it to explain why Valletta negotiation margins are limited. |
| PwC Malta | Top professional services firm with Malta tax expertise. | We used it to confirm VAT exemption on residential property. We referenced it to separate property VAT from service VAT. |
| Dhalia Real Estate | Major established Maltese real estate agency. | We used it to estimate agent commission rates. We referenced it to explain who typically pays the agent fee. |
| Frank Salt Real Estate | Long-established Malta agency with published guides. | We used it to cross-check first-time buyer schemes. We verified stamp duty exemption thresholds against their data. |
| Sciberras Advocates | Malta law firm specializing in property transactions. | We used it for legal context on buyer and seller taxes. We referenced their analysis for withholding tax exceptions. |
| MTCA UCA Guidelines | Official government guidance on Urban Conservation Areas. | We used it to explain Valletta's UCA-specific tax relief. We referenced it for the €750,000 exemption threshold details. |
| Malta Tourism Authority | Official tourism authority for eco-contribution compliance. | We used it to explain short-term rental eco-contribution rules. We confirmed the €0.50 per night rate from their guidance. |
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