The Maltese government has long provided incentives related to purchasing residential properties for Malta first-time buyers. These government incentives have made buying property in Malta all the more rewarding for investors and individuals alike, especially in the case of applicants to the Malta citizenship by investment scheme – otherwise known as the Granting of Citizenship for Exceptional Services Regulations (CES).

€10,000 Grant for First-time Buyers

Many individuals plan to invest in Malta by purchasing an immovable property. This can be particularly beneficial for investors under the Malta Residency by Investment program, which is still active despite the ECJ ruling again the Malta citizenship by investment scheme.

Those considered first-time buyers can benefit from a one-time subsidy of €10,000 spread over ten years – which amounts to €1,000 per annum.

This grant applies to all property purchases made starting in 2022 and will help any home buyer pay down their mortgages. The only stipulation is that the value of the property must not exceed €500,000.

Malta’s First-time Buyers scheme provides other advantages to foreign investors buying property in Malta, some of which had been previously placed and recently extended until 2024. These include:

VAT return on renovations and restoration works

Current and prospective property owners of qualifying real estate may receive a VAT refund of up to €54,000 on the first €300,000 spent on renovations.

Grants for older-type properties

First-time home buyers are eligible for a further grant of €15,000 to cover restoration costs if they:

  • Purchase an older-style home built more than 20 years ago and vacant for more than seven years; OR
  • Purchase a newly constructed home with traditional Maltese architecture

The grant increases to a maximum value of €30,000 if the property is in Gozo.

Waiving of stamp duty

If you’re buying your first home in Malta to establish your residence, there are a few taxes in Malta that you might be exempt from. For instance, you may be exempt from paying stamp duty on the first €200,000 of the property’s purchase price, regardless of the property’s location or type. Anything exceeding that amount will be taxed at a rate of 5%.

Exemption from stamp duty

Buys and vendors, respectively, will be exempt from Stamp Duty and Final Withholding Tax on the first €750,000 of their property if:

  • The property purchased was constructed more than 20 years ago and has been uninhabited for at least seven years; OR
  • The property is situated inside an Urban Conservation Area (UCA); OR
  • The property has recently been constructed to reflect traditional Maltese architecture and design.

Refund on stamp duty for vendors

Owners who sell their home in Malta to acquire another residence may apply for a refund of up to €3,000 on stamp duty – or €5,000 if they are differently abled. The only condition is that they do not own any other property then.

Reduced stamp duty on properties in Gozo

Individuals who purchase a property in Gozo before the start of 2025 will benefit from a reduction in stamp duty tax and will pay 2% instead of 5%.

How Can Global Citizen Solutions Help You?

Global Citizen Solutions is a boutique migration consultancy firm with years of experience delivering bespoke residence and citizenship by investment solutions for international families. With offices worldwide and an experienced, hands-on team, we have helped hundreds of clients worldwide acquire citizenship, residence visas, or homes while diversifying their portfolios with robust investments. 

We guide you from start to finish, taking you beyond your citizenship or residency by investment application.