Any question about tax on capital gains in Malta for individuals and companies: selling Malta property (the final tax on transfer value, its rates and exemptions including the own-residence exemption), gains on shares, securities, a business, goodwill, intellectual property, partnership and trust…
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| Transfer | Rate | Provision |
|---|---|---|
| General rule | 8% of transfer value | 5A(5)(a), first proviso |
| Not part of a project, transferred not later than five years after acquisition | 5% of transfer value | 5A(5)(e) |
| Acquired before 1 January 2004 (no promise of sale notified before 17 November 2014), other than inherited or donated property under 5A(5)(b) | 10% of transfer value | 5A(5)(f) |
| Individual (or two co-owners) declared in the deed of acquisition that it was bought as their sole ordinary residence, transferred not later than three years after acquisition, and they own no other residential property at the transfer | 2% of transfer value | 5A(5)(g) |
| Inherited on a death after 24 November 1992, or received by donation more than five years before the transfer (not a project) | 12% of (transfer value − acquisition value), unless the transferor elects otherwise | 5A(5)(b) |
| Inherited on a death before 25 November 1992, or inherited and sold by judicial sale by auction | 7% of transfer value | 5A(5)(c) |
| Property restored under the article 31C restoration scheme | 10% of transfer value | 5A(5)(d) |
| Property in an urban conservation area or scheduled, restored under a permit applied for on or after 1 January 2015, works certified, transfer on or after 1 January 2016; the transferor declares the works to the notary; this rate and the 31C rate were "not applied in respect of any previous transfer of the same property"; the certificate goes to the notary and the Commissioner, with any forms required | 5% of transfer value | 5A(5)(h) |
| Legacy cases: property in a project or special designated area, or acquired before 2004, where a promise of sale was notified before 17 November 2014 | 12% of transfer value | 5A(5)(a), (f) |
This skill covers how Malta taxes gains when an individual or a company sells or otherwise transfers a capital asset: immovable property, shares and other securities, a business or goodwill, intellectual property, an interest in a partnership, and a beneficial interest in a trust. It covers the final tax on transfers of Malta property (article 5A of the Income Tax Act), the main exemptions (including the own-residence exemption), non-residents and non-domiciled residents, and how the tax is paid and reported.
Malta does tax capital gains. There is no separate capital gains tax act. Instead, article 5 lists the assets whose gains are taxable, and says those gains "shall be charged under article 4(1)". An article 5 gain is added to the person's chargeable income and taxed at their normal rates. Malta property is different: most transfers of Malta property fall under article 5A, which charges a final tax on the transfer value (usually 8%, ITA art. 5A(5)), not on the gain. Assets that are not in the article 5 list (for example cars, art, coins held as an investment) are outside the charge unless the profit is trading income.
What we could not check. The Malta Tax and Customs Administration (MTCA) site, mtca.gov.mt, refused our automated source checks on 25 September 2026. Everything below is sourced from the Laws of Malta (legislation.mt). Points that depend on MTCA forms, guidance or subsidiary rules we could not read are marked "check".
Related Skills. Rate tables for individuals: malta-income-tax. Crypto-assets: mt-crypto-tax. Non-domiciled residents: mt-non-dom.
Sources: Income Tax Act, Cap. 123 and Income Tax Management Act, Cap. 372.
Rates apply to the transfer value, which "is the higher of the market value of that property and the consideration paid or payable for the transfer" (article 5A(6)(a)), except the inheritance and donation row, which is charged on the gain.
| Transfer | Rate | Provision |
|---|---|---|
| General rule | 8% of transfer value | 5A(5)(a), first proviso |
| Not part of a project, transferred not later than five years after acquisition | 5% of transfer value | 5A(5)(e) |
| Acquired before 1 January 2004 (no promise of sale notified before 17 November 2014), other than inherited or donated property under 5A(5)(b) | 10% of transfer value | 5A(5)(f) |
| Individual (or two co-owners) declared in the deed of acquisition that it was bought as their sole ordinary residence, transferred not later than three years after acquisition, and they own no other residential property at the transfer | 2% of transfer value | 5A(5)(g) |
| Inherited on a death after 24 November 1992, or received by donation more than five years before the transfer (not a project) | 12% of (transfer value − acquisition value), unless the transferor elects otherwise | 5A(5)(b) |
| Inherited on a death before 25 November 1992, or inherited and sold by judicial sale by auction | 7% of transfer value | 5A(5)(c) |
| Property restored under the article 31C restoration scheme | 10% of transfer value | 5A(5)(d) |
| Property in an urban conservation area or scheduled, restored under a permit applied for on or after 1 January 2015, works certified, transfer on or after 1 January 2016; the transferor declares the works to the notary; this rate and the 31C rate were "not applied in respect of any previous transfer of the same property"; the certificate goes to the notary and the Commissioner, with any forms required | 5% of transfer value | 5A(5)(h) |
| Legacy cases: property in a project or special designated area, or acquired before 2004, where a promise of sale was notified before 17 November 2014 | 12% of transfer value | 5A(5)(a), (f) |
Which rule wins. Work in this order:
Loss of the 5% rate (article 5A(5)(e) provisos). The 5% rate does not apply if, in the five years before the transfer:
Housing-scheme leases (article 5A(5)(i), transfers on or after 1 January 2022). Where the property was leased for at least ten years ending on the date of the transfer, and for that whole period the tenant was entitled to a benefit under the Private Rent Housing Benefit Scheme, the Nikru Biex Nassistu Scheme or the Rehabilitation of Vacant Dwellings for Rent Scheme:
A Housing Authority certificate of the benefit period must be produced to the notary.
Donations within five years. A person who received the property by donation five years or less before the transfer is treated as having acquired it on the date the donor acquired it (article 5A(5)(b), third proviso). The rate then follows the donor's acquisition date.
| Item | Figure | Year | Source |
|---|---|---|---|
| Company rate on chargeable income (includes article 5 gains) | 35% ("thirty-five cents (0.35) on every euro") | 2026 and 2025 | ITA art. 56(6) |
| Transfer of a beneficial interest in a trust that includes taxable trust property (assets whose direct transfer by the beneficiary would be taxable) | 35% of the consideration, no deductions | 2026 and 2025 | ITA art. 5(19)(a)-(c) |
| Provisional tax on non-5A transfers | 7% of the consideration (or of the higher of market value and consideration for a controlling interest in securities or a partnership interest), within fifteen days | 2026 and 2025 | ITMA art. 43(1)(b) |
| Provisional tax on securities in a property company | as prescribed, not exceeding 35% of the higher of market value and consideration | 2026 and 2025 | ITMA art. 43(1)(b) |
| Reduced provisional tax on request | allowed if the gain is less than 20% of the consideration | 2026 and 2025 | ITMA art. 43(3) |
| Article 5A tax payment | within fifteen working days of the transfer | 2026 and 2025 | ITA art. 5A(11) |
| Interest on late tax (including article 5A tax) | 0.6% for every month or part of a month, capped at the tax | tax due on or after 31 August 2022 | ITMA art. 44; ITA art. 5A(12)(g) |
| Commissioner's order on under-declared value | only if the declared value is less than 85% of market value, and within twelve months of notification; the order adds additional tax equal to the shortfall, on top of the correct tax | 2026 and 2025 | ITA art. 5A(12)(d)-(f) |
| Participating holding (companies) | at least 5% of the equity shares, among other tests | 2026 and 2025 | ITA art. 2(1) |
| Duty on transfer of immovable property | 5% of the higher of consideration and value | 2026 | Duty on Documents and Transfers Act art. 32(1) |
| Duty on transfer of marketable securities | 2%, plus 3% more where 75% or more of the company's assets are immovable property | 2026 | Duty on Documents and Transfers Act art. 42 |
An individual's article 5 gain is added to chargeable income and taxed at the normal rates. Resident individual, single table, basis year 2026 (year of assessment 2027): tax = chargeable income × rate − subtraction.
| Chargeable income | Rate | Subtract |
|---|---|---|
| Not over €12,000 | 0% | nil |
| Over €12,000 and under €16,000 | 15% | €1,800 |
| Over €16,000 and under €60,000 | 25% | €3,400 |
| Over €60,000 | 35% | €9,400 |
For 2025 gains (year of assessment 2026) the single table in Act IX of 2025 has the same bands and subtractions. Married, parent and non-resident tables differ: use malta-income-tax.
No tax is chargeable (article 5A(4)) on these transfers, among others:
Own residence (5A(4)(c)). All of these must be met:
"Own residence" means the principal residence, the owner's "only or main residence", with garden or grounds needed for its reasonable enjoyment, and a garage attached to it or of not more than seventy square metres within five hundred metres, transferred on the same deed (article 5(5)(c)). Absences abroad for work, holiday, study, illness or care count as residence if the premises are not used for anything else meanwhile. A part used exclusively for commercial purposes within two years of the transfer is excluded proportionately. Periods count from a spouse or direct ascendant from whom the property was inherited, and from a spouse who assigned it on separation. If only an undivided share qualifies, the exemption is restricted proportionately. On divorce or separation, the house counts as vacated only when the other spouse also stops occupying it.
Family donations (5A(4)(a)). A donation to a spouse, a descendant or ascendant in the direct line or their spouse, or, if there are no descendants, to a brother or sister or their descendant; or to an approved philanthropic institution. On a later sale the donee takes the donor's acquisition date.
Separation and divorce (5A(4)(d)-(e)). Assignments between spouses on separation or divorce, and on dissolving the community of acquests.
Intra-group and restructuring (5A(4)(f)-(g)). Transfers between companies that qualify for group relief under article 5(9), and a business incorporated into a company under article 5(15). A company that leaves the group within six years is charged 8% (10% if acquired before 2004) on the value at which it took the property (article 5A(12A)). Refer.
Trusts (5A(4)(h)), exempt persons (5A(4)(i)), and 95% shareholder liquidation transfers (5A(4)(j)), each with conditions: refer.
Outside article 5A (article 5A(3)), so article 5 and the 7% provisional tax apply instead, in these main cases:
What is an article 5 asset. Gains or profits from a "transfer" (sale, exchange, donation, settlement on trust, redemption or cancellation of fund units, distributions in a winding up, and more; not a transfer causa mortis) of:
"Securities" means "shares and stocks and such like instrument that participate in any way in the profits of the company and whose return is not limited to a fixed rate of return", units in a collective investment scheme, and units relating to linked long-term insurance. So an ordinary bond or a preference share with a fixed return is not an article 5 security, and a non-trading gain on it is not taxed.
Cost and deductions.
Losses (article 5(10)). A capital loss is computed like a gain. It "shall not be set off against other income for the year of assessment but shall be carried forward and set off against capital gains in respect of subsequent years of assessment until the full loss is absorbed". Losses on article 5A transfers are never deductible (article 5A(9)(b)).
Main reliefs for shares.
Trust beneficial interests (article 5(19)). This rule applies only to a trust that includes "taxable trust property": assets whose transfer, "had it been carried out directly by the relevant beneficiary, would have given rise to gains or profits chargeable to tax". The gain is "equal to the consideration" declared in the transfer instrument, with no deductions, taxed at the article 56(6) rate (35%) with no relief or credit. The transferor must give the trustee a copy of the instrument within forty-five days, and the trustee collects the tax and pays it by the fourteenth day after the end of the month of collection. The gain is not declared in the transferor's return.
Partnership interests (article 5(1)(a)(v)). A transfer of a full or partial interest, and a deemed transfer when a partner acquires or increases a partnership share, are article 5 transfers.
| Person | Malta property | Article 5 gains arising in Malta | Article 5 gains arising outside Malta |
|---|---|---|---|
| Resident and domiciled individual | Article 5A | Taxed | Taxed (worldwide) |
| Resident, not domiciled or not ordinarily resident | Article 5A | Taxed | Not taxed, even if brought to Malta (art. 4(1), proviso (ii)) |
| Non-resident individual or company | Article 5A (or 5A(3)(h) exclusion) | Taxed, unless exempt under art. 12(1)(c)(ii) | Not taxed |
| Company incorporated in Malta | Article 5A; profits go to the final tax account | Taxed at 35% | Taxed at 35%, subject to the participation exemption |
A company managed in Malta but incorporated abroad (resident, not domiciled) is taxed on foreign income only when received in Malta, and on foreign capital gains not at all (art. 4(1) provisos). Refer.
| Situation | Treatment | Why |
|---|---|---|
| Own home owned and lived in for three consecutive years, sold 11 months after moving out, main residence election made | Exempt | 5A(4)(c) |
| Same, but sold 13 months after moving out | Taxed at the normal 5A rate (8%, or 5% or 10% if those rows apply) | Outside "within twelve months of vacating" |
| Own home lived in for 2 years 10 months | Not exempt. 2% of transfer value if the deed of acquisition declared it their sole ordinary residence, the sale is within three years of acquisition and they own no other residential property; otherwise 5% (within five years), else 8% | Less than "at least three consecutive years"; 5A(5)(g), (e) |
| Flat bought, not lived in, sold four years later, no permit works | 5% of transfer value | 5A(5)(e) |
| Same, but the owner did works needing a development permit | 8% of transfer value | 5A(5)(e), second proviso |
| Bought in 2001, sold in 2026 | 10% of transfer value | 5A(5)(f) |
| Inherited from a parent who died in 2012 | 12% of the gain, unless the transferor elects out of 5A(5)(b); then the rate on transfer value applies | 5A(5)(b) |
| Inherited from a parent who died in 1990 | 7% of transfer value | 5A(5)(c) |
| Price declared below market value | Tax on market value; order possible if declared value is under 85% of market value | 5A(6)(a), 5A(12)(d) |
| Unlisted shares in a Maltese trading company, resident domiciled seller | Article 5 gain at normal rates; 7% provisional tax | 5(1)(a)(ii); ITMA 43 |
| Shares listed on a recognised exchange | Outside the capital gains rule | 5(6)(b) |
| Non-resident sells shares in a Maltese non-property company | Exempt, if not owned or controlled by Malta ordinarily resident and domiciled individuals | 12(1)(c)(ii) |
| Non-resident sells shares in a Maltese property company | Taxable article 5 gain | 12(1)(c)(ii) excludes property companies |
| Non-dom sells shares in a foreign company, proceeds brought to Malta | Not taxed | 4(1), proviso (ii) |
| Fixed-rate bond sold at a gain, not trading | Not taxed | Not "securities" |
| Car, boat or art sold at a gain, not trading | Not taxed | Not in the article 5 list |
| Coins held as an investment | Not taxed; see mt-crypto-tax | Not in the article 5 list |
| Loss on shares | Carried forward against future capital gains only | 5(10)(b) |
All amounts are hypothetical. Transfers are in basis year 2026 unless stated.
Case 1: investment flat, held more than five years. Bought in 2019, never lived in, no permit works, not part of a project. Sold in September 2026 for €320,000; market value is not higher.
Case 2: flat sold within five years. Bought in 2023, sold in 2026 for €250,000. No works needing a permit, and no related person held it as part of a project.
Case 3: inherited house. Inherited from a parent who died in 2010. Assume the acquisition value, determined as prescribed, is €150,000. Sold in 2026 for €300,000.
Case 4: property acquired before 2004. Bought in 1998, no promise of sale notified before 17 November 2014, sold in 2026 for €400,000.
Case 5: own home. Owned and lived in since 2018 as the only residence, moved out in March 2026, sold in November 2026, main residence election made.
Case 6: unlisted shares, resident individual. A resident, domiciled, single individual with no other income sells shares in a Maltese trading company that is not a property company. Cost €20,000 (bought in 2015), sale price €70,000 (market value), not a controlling interest.
Case 7: non-resident selling Maltese shares. An individual resident in another country, not controlled by anyone ordinarily resident and domiciled in Malta, sells shares in a Maltese software company that owns no Malta property.
Case 8: losses. In 2025 a resident made a €10,000 loss on unlisted shares. In 2026 they made a €15,000 gain on other unlisted shares.
Case 9: company with a participating holding. A Maltese company sells its whole holding in an EU subsidiary (not a property company) at a gain of €200,000.
Refuse to give a rate for a Malta property transfer until you know: the acquisition date and method, whether it is part of a project, any permit works or related-party project in the last five years, the own-residence facts, and for a sale within three years of acquisition whether the deed declared it the sole ordinary residence and whether the seller owns any other residential property.
Refer:
Do not:
| What | When | Source |
|---|---|---|
| Article 5A tax on Malta property | Due by the transferor; remitted "within fifteen working days of the relative transfer", normally by the notary on the deed | ITA art. 5A(11) |
| Provisional tax on other transfers (article 5 assets, and property outside 5A) | Within fifteen days of the transfer | ITMA art. 43(1)(b) |
| No provisional tax | Exempt transfers where the prescribed form is filed (but still due where article 33 applies as a result of claiming 12(1)(u)); partition deeds; shares in public companies | ITMA art. 43(2) |
| Individual return declaring 2026 article 5 gains | 30 June 2027; tax due the same day | S.L. 372.16 rules 2(c)(ii), 5(b) |
| Individual return for 2025 gains | Was due 30 June 2026. MTCA usually announces a later date for online filing: check | S.L. 372.16 rule 2(c)(ii) |
| Company return | Later of the last day of the ninth month after the accounting period ends and 31 March of the year of assessment | S.L. 372.16 rule 2(c)(i) |
| Trust beneficial interest transfer | Transferor to trustee within forty-five days; trustee pays by the fourteenth day after the end of the month of collection | ITA art. 5(19)(d)-(e) |
| Late tax | 0.6% a month or part of a month, capped at the tax | ITMA art. 44; ITA art. 5A(12)(g) |
| Commissioner's order on an article 5A transfer | Within six years from the end of the year the transfer is notified; for undervalue only, within twelve months. Additional tax equal to the shortfall is payable on top of the correct tax | ITA art. 5A(12)(d) |
Reporting. Article 5A tax is final: the transferor "shall not be required to declare any such income" in a return (ITMA art. 43(4)(a)), and it is not a credit against other tax. Article 5 gains are declared in the return for the year of assessment after the transfer; the provisional tax is set off only if the gain is declared (ITMA art. 43(4)(b)).
Records. Every owner of Malta immovable property must keep an account of all proceeds and expenditure on article 5A transfers (ITA art. 5A(10)(c)). Keep deeds, valuations, cost records and loss computations.
Duty. Separate from income tax. Duty on documents is charged on a transfer of immovable property at 5% of the higher of consideration and value (Cap. 364 art. 32(1)), and on marketable securities at 2% (art. 42). Reliefs and who bears the duty: see the Duty on Documents and Transfers Act or refer.
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