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. 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.
Other Government Incentives Related to Property Purchases
Malta’s First-time Buyers scheme provides other advantages to foreign investors, 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, 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%.
Frequently Asked Questions about the First-time Buyers Scheme 2022 Malta
Who qualifies as a first-time buyer?
Individuals who have not previously purchased residential properties in Malta and want to buy a home are considered first-time buyers and can qualify for Malta’s tax exemptions and incentives.
Are there any schemes for first-time buyers?
Yes, Malta’s government provides first-time home buyers with a handful of exemptions and incentives.
How much deposit do I need for a first-time buy?
A deposit equal to about 5% of the property value is required. Buyers purchasing their first property in Gozo before the end of 2024 can benefit from a reduction in stamp duty and pay 2% instead of 5% of the total amount.