Property Purchase in the Malta Budget 2025

With this year's Malta Budget 2025, which was recently announced by the Maltese government, several property incentives have been extended and introduced to stimulate the real estate market.

Stamp Duty Reduction Scheme

The Stamp Duty Reduction Scheme for first-time and second-time buyers will remain in effect, with a reduced tax rate from 8% to 5% and a slashed stamp duty rate from 5% to 1.5% on the first €200,000 of a property's value.

First Time Buyers in the Malta Budget 2025

In this year's Malta Budget 2025, First-time buyers can enjoy fiscal benefits that were introduced in previous ones (you can read more on past year's Malta Budget 2024 and Malta Budget 2023). The stamp duty rate is reduced from 8% to 5% on the first €200,000 of the property's value. Additionally, the stamp duty rate is further reduced to 1.5% on the first €200,000 for properties located in Urban Conservation Areas (UCA) or for properties that have been vacant for seven years or more.

Moreover, when it comes to Gozo properties, the Malta budget 2025 states that for first-time buyers purchasing UCA property in Gozo, the cash grant has been increased from €30,000 to €40,000. However, the tax incentive for property purchases in Gozo has been removed, resulting in the stamp duty rising back to 5%.

Second-Time Buyers in the Malta Budget 2025

This year's Malta Budget 2025 Second-time buyers will also enjoy some important tax benefits. Indeed, the scheme also benefits second-time buyers with a reduced stamp duty rate of 5% on the first €200,000 of the property's value.

Property Purchase Tax Benefits in the Malta Budget 2025

Also this year, the Malta Budget has been covering Vacant and UCA properties, which are properties that are built over 20 years ago and have been vacant for at least seven years. With the Malta Budget 2025, these types of properties are eligible for several tax benefits. Vacant and UCA properties are exempt from property tax and capital gains tax on the first €750,000 of property transactions

Why property tax exemption in this year's Malta Budget?

This exemption aims to encourage the purchase and renovation of older, vacant properties, thereby revitalizing these areas. For properties located in UCAs, the same tax exemptions apply. Owners of these properties do not have to pay stamp duty and capital gains tax on the first €750,000 when selling or purchasing the property

With the Malta Budget 2025, the Maltese government also aims at preserve the historical and cultural heritage of urban areas by making it more financially attractive to invest in these properties.

Extension of VAT refunds on renovations and restorations

Additionally, VAT refunds on renovations and restorations have been extended. No VAT will be payable on the first €300,000 in restoration and finishing costs of vacant and UCA properties

This incentive is designed to reduce the financial burden on property owners who undertake significant renovation projects, thereby promoting the upkeep and improvement of these properties.

Malta Budget 2025 property measures and the real estate market

These measures aim to maintain the stability and attractiveness of Malta's property market for both local and foreign buyers.

How we can help

We can help understanding what the new Malta Budget 2025 measurements mean for first-time and second-time buyers, as well as get the most out of the fiscal and tax advantages presented this year.

Get in touch with us.