Seller Costs to Consider

Changes in the November 2014 Budget sought to close loopholes being exploited in Capital Gains Tax due on transfer of immovable property.

The Final Withholding Tax (better to think of as a Sales Tax) will now range from 5% -10% instead of previous flat rate 12%.  Property that is NOT your main residence will have a default of 8% on sale price.

With various exceptions and conditions depending on:

  • When You Bought your Property
  • Was it Prior to 1st Jan 2004?
  • Is Your Property Your main Residence?
  • Are You a Property Trader?
  • Did You Inherit The Property? And if So Prior to 25th Nov 1992?

Please note however that your Primary Residence the place where you live; to quote the VAT Dept:

“…If you owned the property and you occupied it for at least three consecutive years immediately preceding the date of transfer, and as long as the property is transferred within twelve months from when you vacate the premises, the transfer is exempt….”

Essentially your own home is exempt from Capital Gains Tax if you have occupied it for at least 3 years. As you may guess – not simple or straight forward, and suspicion that policy is still fluid in any final outcome. Further information should be sought from your Notary or by visiting the Inland Revenue Malta FAQ’s ‘NEW’ page:

At the time of completion your Notary and Lawyer will make sure that any outstanding lending, i.e. a mortgage, is paid on your behalf and cleared, or transferred to your new property.

Other Seller Costs may include other Loans, taken out as collateral on the property being repaid with the profits from the sale.

Please be aware that there are numerous areas of tax due, or not due within the Maltese Tax System. It is therefore essential that you discuss all tax matters with your specialist Property Lawyer. Further information can be found on the Inland Revenue Department web-site;

E.P.C. Energy Performance Certificate

The E.P.C was officially launched in Europe in 2008.  Every European country undertook to implement a strategy whereby a buildings energy efficiency could be monitored and advice given to improve things like insulation, solar, double glazing etc.  While this was implemented as instructed elsewhere – Malta appears to have ‘forgotten’ about this.

Now however the panic is on and Malta has to fall in line with it’s European Partners. The certificate displays essentially the energy efficiency of any building and grades it similar to what you see on domestic appliances. A or A+.

The certificate must be produced by any property owner who is selling or renting. The owner or agent must be able to produce this certificate either at the promise of sale or when a lease is being signed.

It should be noted that properties being sold off plan will still require a certificate. The certificate will be valid for 10 years, and can be obtained from an independent assessor. Costs vary between €150 and €300.  For more information on the E.P.C visit  Further reading on this subject can be found on our blog. Click here.

Estate Agency Fees

If you choose to sell your property through, then a Fixed Seller Fee is payable to list your property if you choose our Platinum Package. (see our other packages) Your property will be loaded onto our Website and all Property Portals and Social Media, and enjoy the benefits of our full real estate agency services. When we sell your property there are no commission fees due. 0% if you choose our Platinum Package.

Other agents however, can and will charge anything from 3 – 5% of your final sale price in commission fees. Use the Saving Calculator on the right side of this page to get a glimpse of the savings you stand to make if you sell your property through

Moving Day Costs

While it is tempting to get friends in to help lift the boxes, a professional moving company will ensure that moving day goes smooth and without stress.

Get some quotes or better yet, recommendations on removal companies from friends and family. Remember to check what their fees include. Do they provide boxes? Do they do the packing? Do they also provide a lifter, or do you need find one yourself? Most importantly…What insurances do they have?

This is only a guide and each individual may have different seller costs as per their sale.