Guide to Property Taxes and Real Estate Fees in Malta

Understanding the ins and outs of property taxes and real estate agency fees in Malta is crucial in navigating the real estate market of the country. This article, presented by Excel Homes aims to shed light on the responsibilities associated with property transactions in Malta providing a comprehensive overview of property taxes real estate agency fees and more.


Insights on Property Taxes in Malta

In contrast to other nations Malta does not levy an annual property tax on homeowners. Instead taxes are typically incurred during the buying or selling process. Here’s a breakdown of the taxes that may come into play;


  1. Stamp Duty

Buyers in Malta are usually obligated to pay a stamp duty to 5% of the propertys purchase price. However there is currently a reduction to 1.5% for the first €400,000 of the property value until December 2024 as part of efforts to stimulate the real estate market. This reduction serves as an incentive for prospective buyers.


  1. Capital Gains Tax

Upon selling a property sellers may be liable, for capital gains tax based on the profit realized from the sale.

The rate might. There are specific situations where sellers may be exempt such as depending on how long they’ve owned the property or if it’s their main residence.


For instance;

 A first-time buyer buying a home for €250,000 would need to pay €3,750 in stamp duty during the reduction.

 If a seller sells a property they’ve owned for five years with a profit of €60,000 they would have to deal with capital gains tax and make use of any deductions


Understanding Real Estate Agency Fees in Malta

Commission Rates

Real estate agencies, in Malta typically charge a commission fee of around 5% of the propertys selling price for their services. This fee is usually divided between the buyer and seller. The exact terms can vary based on the agency.


Sole Agency Agreements

Choosing an agency agreement could impact the fees you incur. In agreements, one agency has exclusive rights to sell the property and may offer a lower commission rate. However, these details can differ significantly among agencies so it’s crucial to grasp the terms before agreeing. In closing, when it comes to property deals in Malta there are rules and guidelines to follow especially regarding taxes and agency charges. By grasping these responsibilities potential buyers and sellers can better navigate the market ensuring that their decisions align with their investment objectives. Excel Homes is dedicated to equipping our clients with the knowledge and assistance to capitalize on Malta’s dynamic real estate sector.


Contact us for information or browse through our website’s property listings. Our team of professionals is always available to assist you at every stage of your real estate journey, in Malta.


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