Thinking of upgrading your home in Malta? You’re not alone. Many homeowners are selling off their old houses to purchase new ones, driving up activity in Malta’s property market. People buy a second home for different reasons – the desire for a more comfortable space, better job opportunities, or a growing family.
To support these aspirations, the Maltese Government has introduced the Second-Time Buyers Scheme to give a helping hand to established homeowners looking to upgrade. This scheme offers several financial incentives to make buying a second home in Malta more affordable.
What Is Malta's Second-Time Buyers Scheme?
The Second-Time Buyers Scheme is a programme designed for people who want to sell their first home in Malta and purchase another as their primary residence. It was launched on 10 October 2017 and has been extended multiple times over the years. This scheme provides a stamp duty refund on the property price, easing the financial burden on homeowners looking to trade up.
The Maltese government has extended the scheme under the Malta Budget 2026, and it applies to properties acquired on or before 31 December 2025.
Stamp Duty Refund Details: How Much Can You Save?
The Second-Time Buyers Scheme refunds the stamp duty you pay on the first €86,000 of your new property. Since the standard stamp duty rate in Malta is 5%, this means €4,300 back in your pocket. For people with disabilities or their guardians, the refund increases to cover the first €150,000, so they will receive up to €7,500.
For example, if you're upgrading from a €300,000 home to a €450,000 apartment in Malta, you will normally pay stamp duty of €22,500 (5% of €450,000).
But with the Second-Time Buyers Scheme, you'll receive a €4,300 refund, which reduces your actual stamp duty to €18,200. You can use this saving to furnish your new home, cover moving expenses, or do the renovation you've probably been planning.
Eligibility Criteria: Who Qualifies?
To be eligible, you need to meet the following requirements:
- You need to sell your first home and buy a new one within 12 months of the sale.
- The new home must be your sole residence.
- Both your old home and your new home must qualify for the residential property rate. (Properties received as gifts or those that were tax-exempt don't qualify).
- You must not own any other residential property, e.g., a plot of land, at the time of purchasing your new home.
- If you benefited from the First-Time Buyers Scheme, you'll need to wait at least 5 years before you can use the Second-Time Buyers Scheme on your next property.
Note: If you choose to buy your new home first, you have 12 months to sell your old one to qualify for the refund.
Otherwise, you won't get any refund on the stamp duty paid on the property. So, it's important to time your purchase and sale carefully to stay within this window.
How to Apply: Step-by-Step Application Process
Here are the steps to apply for the Second-Time Buyers Scheme:
Talk to a Notary: Before you do anything, you need to get in touch with a notary. They will handle the process for you and give you proper legal advice based on your specific situation.
Check If You’re Eligible: Review your property history and residency documents together with your notary to see if you qualify for the scheme.
Sort Out Your Sale: You need a solid plan to sell your current home. Your notary will need the promise of sale or the final deed from that transaction as proof.
Buy Your New Property: Once you know you're eligible, go ahead with the promise of sale (konvenju) on your new place.
Provide Necessary Documents: Give your notary everything they need so they can apply for you.
To claim the refund, your notary will need:
- Deed of the current home
- 3 years of utility bills/official mail at that address to prove residency
- Promise of Sale or Deed for the SALE of your current home
- Promise of Sale for the PURCHASE of your new home
- Your valid ID Card
You'll get your stamp duty refund once both the sale and purchase are complete and all documentation is verified. Most people receive their refund within 2-3 months.
Additional Tax Benefits for Second-Time Buyers
In addition to the stamp duty refund, you may also qualify for tax breaks when you buy a second home in Malta. You are exempt from capital gains tax on the first €750,000 of the property's value, provided the property is in an Urban Conservation Area (UCA), is over 20 years old and has been empty for at least 7 years, or is newly built in traditional Maltese architectural style.
Second time buyers can also receive VAT refunds of up to €54,000 on the first €300,000 they spend on home restoration and finishing work on qualifying properties. This includes plastering, painting, plumbing, tiles, windows, bathroom installations, etc.
How Can We Help?
At Arcus Estates, we specialize in Malta's residential and commercial property market. We know the Second-Time Buyers Scheme inside out and can help you navigate the whole process.
Our team keeps up with the latest requirements, real estate trends, and tax regulations, so we can ensure you don't miss out on your stamp duty refund and other benefits. We can also help you find properties that qualify for extra exemptions, work together with your notary, and make sure everything stays on track.
Contact Arcus Estates today to learn more about available properties and how we can help you maximize your benefits under the Second-Time Buyers Scheme.