Expenses incurred when buying a property
DUTY ON DOCUMENTS (stamp duty)
5% Duty on Documents calculated on the purchase price of the immovable property.
If the Buyer is a European Union Citizen declaring on deed that he/she shall reside in the property being purchased as his/her sole ordinary residence, then the preferential rate of 3.5% is applied on the first €150,000 of the price.
FIRST TIME BUYERS: In respect of transfers of immovable property, completed prior to the end of 2017, no (0%) duty shall be chargeable on the first €150,000 of the aggregate value of the consideration paid for the acquisition of such property, provided that this is the first immovable property acquired inter vivos by such person.
Promise of sale agreements MUST be registered with the Inland Revenue Department and 1% provisional duty (i.e. 20% of the tax due on the sale) is payable at this stage on the contract value of the property being transferred. The provisional duty is off set against the final duty due on the final deed, or is refunded in case the deal fails to materialise.
A Maltese Notary is a publicly appointed official, who is responsible for conducting the relevant Public Registry searches, ensuring that the there are no issues with the property’s title and that the transaction is carried out according to Maltese law. It is mandatory by law for a sale of Immovable property to be notarised by an publically appointed Malta Notary.
Approximately, 2% of the immovable property price is due as notarial fees. The notary is usually chosen by the purchaser. Their fees will vary according to the volume of title research required. Fees are calculated according to an official online calculator provided for Malta Notaries for the purpose. - http://www.notariesofmalta.org/members/calculators/bills/
On immovable property subject to ground rent, a recognition fee equivalent to one year’s ground rent is due upon signing the contract of sale. This fee is payable just once and is due to the owner of the said ground rent. A copy of the deed of purchase is also sent to the owner of the ground rent.