Buyer Costs to Take Into Consideration
This is a guide to some buyer costs to take into consideration when you purchase a property here in Malta.
- Stamp duty: 3.5% on the first €150,000 and 5% on any remaining balance. It is important to note that the 3.5% is applied only when the purchase is the first primary residence. 20% of stamp duty is paid at the signing of the Konvenju (promise of sale) with the balance paid at the signing of the deed of purchase.
- First time buyers: exemption of stamp duty. (Offer has been extended to any person buying first residence to 31st December 2018) Provided that certain criteria are met, Maltese and foreign purchases can benefit from an exception up to €5000 on the purchase of imovable property. For information regarding these criteria, follow link to www.notariesofmalta.com
- 2nd Time Buyers: An announcment in the Budget (October 2017) Declared that 2nd time buyers will also now benefit from a relief in a proportion of their stamp duty. ‘Exemption from stamp duty will also apply to second-time buyers of up to €3000K. In case of owners with disability, the maximum amount goes up to €5000K.’
- Ground rent: if applicable to the property you are purchasing, the purchaser will pay ground rent in the form of one year in advance plus one year. (the first year is known as laudemium, this should be established before signing your promise of sale)
- Other fees: registration fees are due depending on the property value. For example a property valued between €69,881 & €93,174, is €46.59. This increases every €23,293 by €9.32. Registration charges can also apply to the ‘warranty of peaceful procession’. The registration of hypothecs; enabling any loans taken for purchase to be guaranteed, the cancellation of any other prior charges and any other registrations that may be required by the Land Registry. All Registration Fees at Public & Land Registry are based on Property Value.
- Notary fees: these are established by Law and in accordance with the Notary guidelines which can be found at Notary Calculation Fees expect 1.5 – 2.5% The Notary Tariff states that any property up to €10,000 will incur a fee of 1%. €10001 – €500,000 fee of 0.5%, anything over €500,001 0.25%; however this is dependant on the amount of searches a notary carries out on the property, subsequently, fees can be higher. Please ask your Notary who you have trusted with publishing the ‘Deed Of Sale’ to issue you with an official quote from the Notary Website.
Please Note, that a Notary acts on behalf of the government, and is considered ’Neutral’ in his/her dealing with both seller and buyer. While it is their duty to ensure that the property being purchased has no problems relating to wills, finance houses, permits and searches etc, notaries are not legal representatives in their day to day duties as Notary Public. However, current legislation does allow a Notary Public to be engaged as an independent legal expert; entitling then to examine and carry out searches. This of course would incur an additional fee.
More info about this in our guide to The Konvenju (Promise of Sale Agreement).
Home Sale Malta will always advise you to engage a lawyer to look after your interests and to guide you through the legal process of purchasing property here in Malta.