Malta’s 2025 Budget introduces a suite of real estate tax incentives aimed at bolstering the property market, supporting first-time and second-time buyers, and encouraging the restoration of heritage properties, especially those situated in Urban Conservation Areas (UCA’s). These measures are designed to make property ownership more accessible and to preserve Malta’s architectural legacy
First-Time and Second-Time Buyer Benefits
Stamp Duty Exemptions and Reductions:
- First-Time Buyers: Enjoy a stamp duty exemption on the first €200,000 of the property’s value, potentially saving up to €7,000. This applies to properties used as a primary residence.
- Second-Time Buyers: Eligible for a refund on the duty paid on the first €86,000 of the new property’s value, provided the previous residence is sold and the new one is acquired within a 12-month period.
Grants:
- First-Time Buyers: Entitled to a €10,000 grant spread over 10 years for properties valued up to €500,000.
Incentives for Restoring Older Properties
To promote the revitalization of Malta’s historic buildings:
- Vacant Properties and UCAs: Buyers of properties over 20 years old, vacant for more than seven years, or located in Urban Conservation Areas (UCAs) are eligible for:
- Stamp Duty and Capital Gains Tax Exemptions: On the first €750,000 of the property’s value.
- Grants: €15,000 for properties in Malta and €40,000 for those in Gozo.
- VAT Refunds: Up to €54,000 on the first €300,000 spent on restoration and finishing works for qualifying properties.
Support for Family Businesses
- Reduced Duty Rate: A 1.5% concessionary stamp duty rate on the transfer of immovable property within family businesses has been extended through December 31, 2025.
Additional Measures
- Stamp Duty Refund for Sellers: Individuals selling their sole residence to purchase another home are eligible for a stamp duty refund of up to €3,000 (or €5,000 for those with special needs), provided they own no other property at the time.
- VAT Refund Scheme for Renovations: Extended through 2025, this scheme offers VAT refunds to first-time buyers who build or renovate their homes, now equally beneficial to single individuals and married couples.
Key Deadlines
- Eligibility Period: Most incentives apply to property transactions completed by December 31, 2025.
- Documentation Submission: Required documentation must be submitted by early 2026, with specific deadlines varying by scheme
Conclusion
Malta’s 2025 real estate tax incentives present significant opportunities for prospective homeowners, investors, and those interested in heritage property restoration. By reducing financial barriers and offering substantial grants and tax reliefs, the Maltese government aims to stimulate the property market while preserving the nation’s architectural heritage.
For personalized advice and to navigate these incentives effectively, reach out to our team at Pierre Faure Real Estate