Malta Budget 2027 points to continuity in support for home purchases and renovations, alongside targeted changes affecting property development and tourist accommodation. For those buying or selling property in Malta, the distinction between existing incentives and new proposals is central to understanding the announcement.
This guide explains the measures relevant to your next property decision, using the Budget speech and published government scheme information.
Information checked on 27 October 2026. Announced measures may require legislation or updated scheme terms before taking effect.
What does Malta Budget 2027 change for property?
The Minister announced the renewal of existing schemes, including support for buying and renovating homes. However, the speech does not identify each scheme individually.
New proposals address tax transparency in airspace transactions and VAT accounting in construction. Higher eco-contributions for tourist accommodation are also announced.
For buyers, this means checking the rules attached to the particular property and transaction, including any updated 2027 deadlines.
Buying your first home in Malta
First-time buyer stamp-duty exemption
Eligible first-time buyers benefit from an exemption on the first €200,000 of their home's value. The exemption is handled through the notary when the deed is signed.
No increase to this threshold was announced in Budget 2027. It should therefore be understood as an existing benefit, rather than a new saving introduced by this Budget.
Property acquisition grants
The Housing Authority's acquisition scheme provides eligible buyers with €10,000 over ten years, paid in annual instalments of €1,000. Qualifying first-time buyers with a disability card may receive €20,000.
A bank home loan is required under the published conditions. The property must be occupied as the applicant's ordinary residence, and payments stop if the qualifying loan is fully repaid or the property is transferred.
These grants provide support after purchase, so buyers should budget separately for their deposit and transaction costs.
Deposit assistance and equity sharing
The 10% Deposit Scheme helps eligible applicants who qualify for a home loan but lack the deposit. Published terms provide for a deposit loan of up to €25,000, within total financing of €250,000. The buyer repays the loan, while the Housing Authority covers the deposit-loan interest under the scheme.
The Equity Sharing Scheme supports eligible applicants aged 25 and over. It generally covers properties valued up to €250,000, with a higher limit in specified former matrimonial-home cases. The Authority's share is capped at 50% of the property and €100,000 and must normally be bought back after 20 years. These are existing terms.
Selling your home and buying another
Two separate forms of assistance may be relevant to eligible second-time buyers.
The stamp-duty refund covers duty paid on the first €86,000 of a replacement home. Eligibility includes conditions governing the previous residence and the timing of the sale and purchase. Certain disability-related cases benefit from a higher threshold.
MTCA's published guidance currently covers acquisitions up to 31 December 2026. Buyers planning a 2027 transaction should verify the specific extension and applicable deadlines before relying on the refund.
Separately, the €10,000 acquisition grant was extended during 2026 to qualifying second-time buyers. Applicants must no longer own their previous residence and must not hold another residential property apart from the qualifying new sole and primary home. The purchase must meet the scheme's date and home-loan requirements; earlier grant payments affect the balance available. This grant extension predates Budget 2027.
UCA and older property incentives
Qualifying properties in Urban Conservation Areas, older vacant buildings and approved traditional-style developments can attract significant incentives. Eligibility differs between schemes, so benefits should not be assumed from a property's appearance or location alone.
For background on the measures introduced last year, read our Malta Budget 2026 property highlights.
For the older vacant-property category, the government's service description requires a building constructed at least 20 years before transfer, vacant for at least seven years, and still vacant at transfer.
The Finance Ministry's published grant windows still refer to 2025–2026. Although the Budget announces a general renewal of schemes, individual 2027 terms and deadlines should be checked before a buyer or seller assumes eligibility.
Proposed changes to airspace sales and construction VAT
The airspace proposal requires fuller disclosure of agreed consideration, stronger valuation checks and taxation reflecting economic substance. It also addresses intermediaries or developers absent from the deed. Consultation is planned, with prospective application.
For covered construction transactions, a proposed reverse-charge mechanism moves VAT accounting to the purchasing business. Eligible deductions remain available.
The scope and commencement date of the construction mechanism remain unspecified. These proposals warrant attention where a purchase involves development arrangements, but should not be presented as an immediate general increase in home-purchase tax.
Higher eco-contributions for short-let accommodation
From 1 January 2027, the announced tourist eco-contribution for short-let apartments is €10 per person per night, capped at €80. Collective accommodation attracts €8 per night, capped at €64. The speech specifies guests over 18.
For prospective rental-property investors, this is a guest accommodation charge to consider in pricing and booking arrangements. It is separate from taxes payable when purchasing or selling the property.
Frequently asked questions
Has Budget 2027 reduced stamp duty?
No general reduction was announced. The existing first-time buyer exemption remains relevant, while time-limited incentives require confirmation of their individual 2027 extensions.
Are UCA property grants confirmed for 2027?
The Budget announces a general renewal of schemes. However, the published grant information reviewed still gives 2026 deadlines. Check the updated conditions before relying on a grant for a 2027 purchase.
Can second-time buyers receive the €10,000 grant?
Eligible second-time buyers can qualify under the extension published in August 2026. Homeownership, purchase-date and bank-loan conditions apply, and applicants who previously received payments must account for those amounts.
Planning your next property move
Whether you are purchasing your first home, moving to a different property or considering an investment, assessing the transaction's eligibility early can help you plan your budget.
Contact Arcus Estates to discuss your property requirements in Malta. Before signing a promise of sale, ask your notary or tax adviser to confirm the reliefs, supporting documents and deadlines relevant to your purchase or sale.
This article provides general information. Eligibility and commencement dates depend on the applicable legislation and scheme terms.
Sources
Ministry for Finance — Budget Speech 2027, in Maltese.
KPMG Malta — Budget 2027 analysis. Property, construction and implementation commentary.
Government service portal — First-Time Buyer Stamp Duty Exemption.
Housing Authority — First-Time Buyer Scheme.
Government Gazette, 21 August 2026 — Property Acquisition Grant amendments.
Housing Authority — 10% Deposit Scheme conditions.
Housing Authority — Equity Sharing Scheme.
MTCA — Second-Time Buyers Scheme guidelines.
Pedament — Budget 2027 property guide and existing tax-incentive references. Secondary source for existing buyer/seller relief and extension status.
Ministry for Finance — Property acquisition and restoration grants.
Government service portal — Vacant Houses Scheme.