First-time buyer guide to property in Malta
Buying your first property in Malta comes with specific tax benefits, but also a process that differs meaningfully from renting or buying in other countries. This guide sets out the financial advantages available, how to build a realistic budget, and what to expect at each stage.
Tax benefits for first-time buyers
Malta offers a stamp duty exemption for first-time buyers on the first €175,000 of the property value. This means that on a property purchased for €175,000 or less, no stamp duty is payable. On a property valued above €175,000, stamp duty at the standard rate of 5% applies to the amount above the threshold. Because stamp duty is the largest single cost after the price itself, this relief can change the total cost of your first purchase by many thousands of euros.
This exemption is available once per buyer, on property intended as a primary residence, purchased by Maltese citizens or EU citizens who are long-term residents in Malta. Non-EU buyers do not qualify. As with every relief in this guide, the thresholds and conditions are set by law and have been revised in successive budgets, so confirm the current scheme with the Commissioner for Revenue or your notary before you rely on it.
How the exemption works in practice
The relief applies to the part of the price up to the threshold, not to the whole price. The standard 5% rate is charged only on the portion above it. The table below shows how the stamp duty changes for a first-time buyer compared with a buyer who does not qualify, using the thresholds in this guide. The figures are illustrations of the arithmetic, not a quote.
| Purchase price | Stamp duty — first-time buyer | Stamp duty — standard 5% | Difference |
|---|---|---|---|
| €150,000 | €0 | €7,500 | €7,500 |
| €175,000 | €0 | €8,750 | €8,750 |
| €250,000 | €3,750 | €12,500 | €8,750 |
| €350,000 | €8,750 | €17,500 | €8,750 |
| €500,000 | €16,250 | €25,000 | €8,750 |
Once the price is above the threshold, the saving is the same fixed amount whatever the price: 5% of €175,000, or €8,750. That is why the relief is proportionally most valuable at the lower end of the market, where it can remove stamp duty entirely, and why it matters less for larger purchases.
What counts as a first-time purchase?
You qualify if you have not previously owned residential property in Malta, either solely or jointly. Ownership of property abroad does not necessarily disqualify you, but you should tell your notary about it so that your situation can be checked against the conditions. If you previously inherited property, or if you own a share in a property with relatives, specific rules apply — confirm with your notary whether that affects your eligibility before you sign the promise of sale.
Claiming the relief
The relief is not applied automatically. You ask for it, the notary checks that you meet the conditions, and the notary applies it when calculating the duty in the final deed. Raise it at your very first meeting with the notary so that your budget, and your mortgage request if you have one, are based on the correct figure from the start. If you are buying jointly with a partner, ask the notary how the threshold is shared when both buyers qualify and what happens if only one of you does.
Other costs the relief does not change
The stamp duty relief does not reduce notary fees, mortgage arrangement fees, survey costs or the cost of moving in and furnishing. It also does not change the 10% deposit you pay when you sign the promise of sale. Plan your cash needs around all of these, which is the purpose of the next section.
Defining your budget
The purchase price is only part of the cost. First-time buyers in Malta should budget for the following additional costs, and should decide on a maximum total spend before they start viewing rather than a maximum price alone:
- Stamp duty: 5% of the purchase price (on the portion above €175,000 if you qualify for the exemption).
- Notarial fees: approximately 1–1.5% of the purchase price.
- Agent commission: typically paid by the seller, but confirm in advance.
- Mortgage arrangement fees: varies by bank, typically €300–€600.
- Property survey or structural inspection: €300–€800 depending on property size.
- Moving costs, minor works, and furnishing: budget 2–5% of the purchase price depending on the property's condition.
Total purchase costs (excluding the property price) typically run to 7–10% for buyers who do not qualify for the stamp duty exemption, and 2–3% for those who do.
A worked example: a €250,000 apartment
To make the numbers concrete, here is how the costs might look for a first-time buyer purchasing a €250,000 apartment with a mortgage of 80% of the price. Every figure is an estimate built from the ranges above; your own costs will differ.
| Item | Estimated amount | Note |
|---|---|---|
| Deposit at the promise of sale (10%) | €25,000 | Paid when you sign; counts towards the price |
| Balance of your own funds (a further 10%) | €25,000 | Together with the deposit this is the 20% not covered by the mortgage |
| Mortgage (80% of the price) | €200,000 | Paid by the bank at the final deed |
| Stamp duty (first-time buyer) | €3,750 | 5% on the €75,000 above €175,000 |
| Notary fees (about 1–1.5%) | €2,500–€3,750 | Ask for a written estimate |
| Mortgage arrangement fee | €300–€600 | Varies by bank |
| Structural survey | €300–€800 | Optional but advisable for older buildings |
| Moving, minor works, furnishing (2–5%) | €5,000–€12,500 | Depends on the condition of the property |
In this example the buyer needs roughly €50,000 for the deposit and balance of the price, plus about €12,000 to €21,000 in taxes, fees, survey and set-up costs, depending on the choices made. That is a total cash requirement in the region of €62,000 to €71,000 for a €250,000 home. A buyer who did not qualify for the exemption would pay about €8,750 more in stamp duty.
Understanding the deposit
Many first-time buyers confuse the deposit paid when signing the promise of sale with the deposit required by the bank. They are connected but not the same. The 10% paid at the promise of sale is a contractual deposit that is kept by the seller if you withdraw without a valid reason. The bank's requirement is the part of the price you must fund yourself, commonly around 20% for residents, with the mortgage covering the rest. Your 10% contractual deposit is paid from that 20%, so in the example above you would pay €25,000 at the promise of sale and a further €25,000 at the final deed.
What the mortgage might cost each month
As an illustration only, a €200,000 loan over 25 years at an interest rate of 3.8% would have a monthly repayment of roughly €1,034. The same loan at 4.5% would be about €1,112 a month, and over 30 years at 3.8% it would be about €932. Rates change and every lender sets its own, so use these figures only to see how sensitive your budget is to the rate and the term.
A common rule of thumb among lenders is that total monthly debt repayments should stay within a limited share of your net income, and many buyers feel more comfortable keeping the mortgage well below that limit. Run the numbers at a rate one or two percentage points higher than today's offer to test whether you could still manage if rates rose.
Running costs after you buy
Budgeting does not end at the final deed. There is no annual property tax on residential property in Malta, but owners still pay for electricity, water, internet, building insurance, any ground rent attached to the property and the upkeep of shared parts of the building. In an apartment block, ask whether there is a building fund or an owners' committee and what each owner contributes. Older properties usually need a larger maintenance reserve than new ones.
Build a safety buffer
Keep a reserve after completion for unexpected repairs, a delay in moving in, or a rise in your repayments. A buffer of a few months of mortgage payments and living costs is a sensible minimum. Buyers who spend every euro on the purchase itself are the ones most exposed if the first year brings surprises.
Key steps in the buying process
The process in Malta is structured and predictable once you know the sequence. The ordered list below gives the overview, and the sections after it explain what happens and what to watch for at each stage.
- Set your budget: determine how much you can borrow and what you have available as a deposit (typically 10% for the Konvenju plus closing costs).
- Get a mortgage pre-approval: speak to at least two banks before you start viewing. Pre-approval clarifies your budget and strengthens your position when making an offer.
- Search for properties: use listing portals and estate agents. Attend viewings and take notes on each property.
- Make an offer: once you find a suitable property, submit a written offer.
- Sign the Konvenju: if your offer is accepted, the promise of sale is signed before a notary. Pay the 10% deposit.
- Complete due diligence: your notary searches the title and checks for any issues during the Konvenju period.
- Sign the final deed: the balance of the purchase price is paid, keys are exchanged, and ownership is transferred.
Before you start: budget and pre-approval
Start with your numbers. Work out your savings, your monthly income and commitments, and the share of the price you can fund yourself. Then speak to at least two banks. A mortgage pre-approval, sometimes called an approval in principle, is not a final loan offer, but it tells you how much a bank is prepared to lend and lets you set a realistic maximum price. Ask each bank about the interest rate, whether it is fixed or variable, the arrangement fee, the valuation fee and any early repayment charges.
Searching and viewing
Search on property portals such as MIRA, and register with a few agencies so that they contact you when something suitable appears. Define the area, property type, size and features you need and rank them in order of importance. When you view a property, go with a checklist: the condition of walls and ceilings, signs of damp, the age of the electrical installation, water pressure, natural light, noise, parking and the state of the common areas. Visit promising properties twice, once on a weekday and once at a different time of day, and walk around the neighbourhood.
Making an offer
Offers are usually made through the agent. Put your offer in writing, state the price and any conditions, such as the inclusion of furniture or appliances or the completion date, and ask the agent to confirm that it has been passed to the seller. Negotiation is normal, particularly on properties that have been listed for some time. Your offer should be consistent with your pre-approval and with your total budget, not only with the asking price.
Signing the Konvenju
When the seller accepts, the promise of sale (Konvenju) is signed in front of the notary and you pay the deposit, commonly 10% of the price. The Konvenju is a binding contract that sets out the price, the deadline for the final deed and the conditions of the sale. A mortgage condition, so that you are not bound if the bank refuses the loan, is common and sensible for a first-time buyer who depends on financing. Read every clause and ask the notary to explain anything you do not understand before you sign.
The due diligence period
Between the Konvenju and the final deed the notary checks the seller's title, searches for mortgages and other charges, and looks at the planning permits. Use the same period to complete your mortgage, arrange building insurance and, if you wish, commission a structural survey. This stage commonly takes a few weeks to a few months, depending on the bank and on how quickly any issues are resolved.
The final deed and completion
On the day of the final deed you, the seller and the notary meet. The notary reads the deed, you pay the balance of the price, stamp duty and fees, the seller is paid, and everyone signs. Ownership passes to you once the deed is signed and registered. Before the day, check the final figures with the notary and your bank, make sure your funds are in the right account, and bring identification and any documents the notary requests.
After completion
Take the keys, record the meter readings and transfer the electricity and water accounts into your name. Arrange contents insurance, keep copies of the deed and the receipts for your records, and note any ground rent due and when it is paid. If you bought in an apartment block, introduce yourself to the neighbours and the managing person or committee.
The role of the notary
In Malta, the notary plays a central role in property purchases. As a first-time buyer, you appoint and pay the notary. They are responsible for verifying the seller's title, checking for mortgages and other charges on the property, ensuring planning compliance, and registering the transfer in the Public Registry.
The notary does not act as your advocate but as an impartial officer of the law. For additional legal advice — for example, on contractual terms or disputes — instruct a separate lawyer.
Choosing a notary
Choose your notary before you make an offer, not after. Ask friends, your bank or your agent for recommendations, and contact two or three notaries to compare their availability and fees. Ask each of them for a written estimate that explains what is included, what the fee is based on and what extra charges might arise, such as registry searches or the preparation of powers of attorney.
What the notary will do for you
- Draw up the promise of sale (Konvenju) and explain its terms to both parties.
- Search the Public Registry and other records to confirm that the seller owns the property and to find any mortgages, hypothecs or other charges.
- Check the planning history and confirm, as far as the records allow, that the building and any additions have the necessary permits.
- Identify any ground rent and explain its amount and conditions.
- Calculate stamp duty, including any relief you are entitled to, and collect and pay it.
- Read and publish the final deed and register the transfer.
What the notary will not do
The notary will not negotiate the price for you, advise you on whether the property is a good investment, or inspect its physical condition. Those are matters for you, your agent and, where appropriate, an engineer or architect. If you want an advocate who is on your side alone, speak to an independent lawyer in addition to the notary.
Documents to have ready
Your notary will tell you exactly what is needed, but expect to provide identification such as a passport or ID card, proof of your address, your tax details, and information about your mortgage if you have one. If you are claiming the first-time buyer relief, be ready to explain your property ownership history. Having these ready early prevents delays at the end of the process.
Affordable areas for first-time buyers
Property prices vary significantly across the Maltese islands. Areas that tend to offer lower entry-level prices include Gozo (particularly outside Victoria), the southern parts of Malta (Żurrieq, Qrendi, Birżebbuġa), and older town centres in need of renovation (Valletta fringe areas, Ħamrun, Msida).
Sliema, St Julian's, and the Northern Harbour area command the highest prices and are generally beyond first-time buyer budgets at €250,000+. However, studio and one-bedroom apartments in these areas can occasionally fall within range.
How to compare areas properly
Do not compare areas by the asking price alone. A cheaper property that is far from work, public transport or services can cost more over time in travel and convenience. Compare the price per square metre, which you can see for areas and property types on the MIRA market data pages, and compare what the price buys: floor area, outdoor space, condition and whether a lift or parking is included.
Property types that are often more affordable
- Studios and one-bedroom apartments, especially in older blocks without a lift.
- Maisonettes and older townhouses in town and village cores, which can offer more space for the money but may need renovation.
- Properties on upper floors of older buildings or on busy roads, where the price reflects the compromise.
- Properties that need updating, where you are able to take on works and budget for them in advance.
The renovation question
A property that needs work can be a way into the market, but only if you budget carefully. Get quotes from at least two contractors before you commit, ask an engineer or architect to inspect structural elements, and include a contingency in your figures for the surprises that older buildings often bring. Check, too, whether the building has the permits for any existing alterations, because unauthorised works become your problem when you buy.
Think about the next move
Many first-time buyers in Malta plan to sell and move up after a number of years. Choose a property with features that make it easy to resell: a good location, a sensible layout, natural light and ideally access to parking or a lift. A slightly higher price for those qualities often pays back when you sell.
Common mistakes to avoid
The mistakes below are the ones that most often cost first-time buyers money or time. Each of them is avoidable with a little preparation.
- Not getting mortgage pre-approval before viewing: you may fall in love with a property outside your actual borrowing capacity.
- Skipping a structural inspection: Malta has many older properties where hidden damp, cracked slabs, or outdated electrical systems are common.
- Signing a reservation agreement without notarial involvement: these agreements vary in enforceability.
- Assuming the stamp duty exemption applies automatically: you must request it and your notary must include it in the deed.
- Forgetting to budget for closing costs: underestimating total outlay is the most common first-time buyer error in Malta.
- Not verifying that the property has a valid development permit and EPC before the Konvenju.
Why these mistakes matter
Skipping pre-approval wastes time, because you spend weeks on properties you cannot finance. Skipping a survey can leave you with repair bills that wipe out the savings from a lower price. A reservation agreement with no notary may leave you unsure of your rights if either side changes its mind, so ask what protection it gives before you pay anything. Assuming the stamp duty relief will simply appear can leave a gap of thousands of euros on the day of the final deed. Finally, a property without the right permits can be hard to finance and hard to sell later.
More pitfalls to watch for
- Being rushed by pressure to decide: a fair offer survives a day or two of reflection and a second viewing.
- Relying on verbal promises: if the seller or agent promises to leave furniture, appliances or air-conditioning units, make sure it is written into the contract.
- Ignoring the building and its neighbours: ask about noise, planned building works nearby and any problems with the common parts.
- Not reading the promise of sale in full: the deadline, the deposit and the conditions are all in the document.
- Leaving the notary until the last minute: bring them in as soon as you decide to buy.
A short pre-offer checklist
- My budget includes stamp duty, fees, survey and set-up costs.
- I have a mortgage pre-approval from at least one bank.
- I have viewed the property more than once and visited the area at different times.
- I know whether the property has the permits and an EPC.
- I have chosen a notary and confirmed whether I qualify for the first-time buyer relief.
- I know what is included in the price and have it in writing.