A drafting reference on the final withholding tax charged to the seller on transfers of immovable property situated in Malta and the duty charged to the buyer, for advisers handling an inter vivos sale by deed.
Drafted by OpenAccountants. The OpenAccountants engine wrote this Guide using Claude Opus 5, figures and method, from the official pages it links, and it carries no accountant's name. Nobody has read or approved it yet, so it may be incomplete or wrong. An accountant in Maltawho reads it, corrects it and approves it takes the byline. General reference only; don't file or take a position on it without professional review.
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Property transfer tax on the seller — FAQ figures
| What | Value | Note | | --- | --- | --- | | Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/faqs/new-property-tax-system---faq | | Standard final withholding tax on transfer value | 8% | The page states that with effect from 1st January 2015 the earlier system "will be replaced by one final withholding tax of 8% on the value of the property transferred". | | Property acquired before 1 January 2004 | 10% final withholding tax | The page contrasts transfers "subject to either 8% final withholding tax or else 10% final withholding tax in the case where the property was acquired before the 1st January, 2004". | | Restored grade 1 or grade 2 scheduled property, or property in an urban conservation area, where a notice of promise of sale or transfer was given before 17 November 2014 | 10% of the transfer value | Stated as "chargeable at the rate of 10% of the transfer value" for transfers made on or after 1 January 2015 under the relevant restoration scheme. | | Transfers in the circumstances of article 31C(1) of the Income Tax Act | 7% of the transfer value | The page states the transfer "shall be chargeable at the rate of 7% of the transfer value. The 7% tax is final." | | Transfers where a notice of promise of sale or transfer was given to the CfR before 17 November 2014, in the cancelled or expired promise of sale cases described | 12% final tax | The page states that "such transfers will remain taxable at the rate of 12% final tax". | | Provisional tax where a non-resident opts out of the final withholding system and is taxed under article 5 (capital gains) | 7% provisional tax | The page states that for transfers on or after 1 January 2015 this 7% provisional tax "shall not be available for refund under article 48 of the Income Tax Management Act". | | Brokerage fees | Deductible from the transfer value | The page states brokerage fees "will remain deductible" and that the amount paid by the transferor continues to be allowable as a deduction from the transfer value. |https://mtca.gov.mt/personal-tax/property-taxes/faqs/new-property-tax-system---faq
Property transfer tax on the seller — Examples figures
| What | Value | Note | | --- | --- | --- | | Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/faqs/new-property-tax-system---examples | | Transfer made not later than five years after the date of acquisition | 5% final withholding tax on the transfer value | The worked example states "The 5% rate applies because the transfer is made not later than five years after the date of the acquisition of the property." | | Reduced 5% rate where the transferor is a company | Applies if the transfer of property does not form part of a project | The page notes the reduced 5% rate applies "if the transfer of property does not form part of a project". | | Election to exclude the transfer from the final withholding tax system | 7% provisional tax paid at the time of publication of the deed | The examples state the election is made "by means of a declaration made to the notary at the time of the publication of the deed", with the gain or profit then declared in the tax return. |
A sale of immovable property situated in Malta attracts two separate charges: property transfer tax on the seller under the Income Tax Act, normally collected by the notary as a final withholding tax on the transfer value, and duty on documents and transfers on the buyer, administered by the Property Tax Directorate of the Malta Tax and Customs Administration. The Malta Tax and Customs Administration states that "The seller must pay capital transfer taxes on the transfer of any property located in Malta, whilst stamp duty is paid by the buyer." The charge arises on the deed of transfer, with a provisional stage at promise of sale. Figures are for tax year 2026. The official pages carrying these figures state their own effective dates rather than a tax year (for example, the 8% rate is stated as applying "With effect from 1st January, 2015"); where a page states its own period, that period is given in the tables below.
This Guide is for a transferor selling immovable property situated in Malta by deed inter vivos, and for the transferee who pays the duty on that deed. It covers the final withholding tax rates the Malta Tax and Customs Administration publishes for such transfers, and the provisional and final duty steps the same authority publishes for the buyer.
It does not cover transfers causa mortis or declarations of causa mortis, share transfers, or donations, all of which the Malta Tax and Customs Administration deals with under separate pages and separate rules. It also does not cover the assignment of a right obtained under a promise of sale: the authority states that such an assignment "is not regulated by the property transfers tax regime".
Property transfer tax on the seller — FAQ figures (https://mtca.gov.mt/personal-tax/property-taxes/faqs/new-property-tax-system---faq)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/faqs/new-property-tax-system---faq |
| Standard final withholding tax on transfer value | 8% | The page states that with effect from 1st January 2015 the earlier system "will be replaced by one final withholding tax of 8% on the value of the property transferred". |
| Property acquired before 1 January 2004 | 10% final withholding tax | The page contrasts transfers "subject to either 8% final withholding tax or else 10% final withholding tax in the case where the property was acquired before the 1st January, 2004". |
| Restored grade 1 or grade 2 scheduled property, or property in an urban conservation area, where a notice of promise of sale or transfer was given before 17 November 2014 | 10% of the transfer value | Stated as "chargeable at the rate of 10% of the transfer value" for transfers made on or after 1 January 2015 under the relevant restoration scheme. |
| Transfers in the circumstances of article 31C(1) of the Income Tax Act | 7% of the transfer value | The page states the transfer "shall be chargeable at the rate of 7% of the transfer value. The 7% tax is final." |
| Transfers where a notice of promise of sale or transfer was given to the CfR before 17 November 2014, in the cancelled or expired promise of sale cases described | 12% final tax | The page states that "such transfers will remain taxable at the rate of 12% final tax". |
| Provisional tax where a non-resident opts out of the final withholding system and is taxed under article 5 (capital gains) | 7% provisional tax | The page states that for transfers on or after 1 January 2015 this 7% provisional tax "shall not be available for refund under article 48 of the Income Tax Management Act". |
| Brokerage fees | Deductible from the transfer value | The page states brokerage fees "will remain deductible" and that the amount paid by the transferor continues to be allowable as a deduction from the transfer value. |
Property transfer tax on the seller — Examples figures (https://mtca.gov.mt/personal-tax/property-taxes/faqs/new-property-tax-system---examples)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/faqs/new-property-tax-system---examples |
| Transfer made not later than five years after the date of acquisition | 5% final withholding tax on the transfer value | The worked example states "The 5% rate applies because the transfer is made not later than five years after the date of the acquisition of the property." |
| Reduced 5% rate where the transferor is a company | Applies if the transfer of property does not form part of a project | The page notes the reduced 5% rate applies "if the transfer of property does not form part of a project". |
| Election to exclude the transfer from the final withholding tax system | 7% provisional tax paid at the time of publication of the deed | The examples state the election is made "by means of a declaration made to the notary at the time of the publication of the deed", with the gain or profit then declared in the tax return. |
Duty on documents and transfers on the buyer — Buying Property figures (https://mtca.gov.mt/personal-tax/property-taxes/buying-property)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/buying-property |
| Provisional duty at promise of sale stage | 1%, paid by the purchaser | Charged "based on the market price or transfer value as per contract, whichever is the higher". |
| Time limit to present the promise of sale to the Property Tax Directorate | Within 21 days | The promise of sale is to be presented to the Property Tax Directorate of the Office of the Commissioner for Tax and Customs within that period. |
| Additional duty (penalty) where an architect's valuation raises the value | 20% of the duty due | The claim to the buyer includes the duty due together with the additional duty based on the difference in the value of the property transfer. |
| Interest where the claim is not paid | 0.75% for every 30 days or part thereof | Interest "shall start accruing after the expiration of three months from the date of notification of the original assessment". |
| Time limit to object to an assessment | Within thirty days from the date of service of assessment | An objection in writing is valid only if it specifies the valid grounds it is based upon. |
Duty on documents and transfers on the buyer — General Information on Duty figures (https://mtca.gov.mt/personal-tax/property-taxes/general-information-on-duty)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/general-information-on-duty |
| Worked example given on the page | Declared price €200,000; duty payable on contract €10,000; provisional duty payable €2,000 | The page gives this as its own illustration of the 1% provisional duty paid by the purchaser at promise of sale stage. |
| Tolerance between the declared value and the market value established by the department's architect | 15% | The page states "the law allows a 15% tolerance between the declared value and the market value established by the department's architect". |
| Issue of receipts after submission of the notice of transfer (DDT1) | Normally not later than 3 weeks from the date of submission | Stated for receipts issued by the Property Tax Directorate. |
| Time limit to present the promise of sale to the Property Tax Directorate | Within 21 days of the actual signing | Stated on the same page. |
Duty on documents and transfers on the buyer — Promise of Sale figures (https://mtca.gov.mt/personal-tax/property-taxes/promise-of-sale)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/promise-of-sale |
| Provisional duty payable when the notary registers the promise of sale | 20% of the duty payable on the final deed | Registered by the notary within 21 days from the signing of the promise of sale agreement, together with that payment. |
Duty on documents and transfers on the buyer — Guidelines (second-time buyers) figures (https://mtca.gov.mt/docs/default-source/documents/guidelines-stb.pdf?sfvrsn=cae8b349_1)
| What | Value | Note |
|---|---|---|
| Source | all figures below | https://mtca.gov.mt/docs/default-source/documents/guidelines-stb.pdf?sfvrsn=cae8b349_1 |
| Second-time buyers scheme (SL 364.17) refund | Duty paid on the first €86,000 of the value of the replacement property is refunded | Applies where an individual transfers a residential property and acquires a replacement residential property within 12 months of the transfer of the replaced property. |
| Period stated by the guidelines | Acquisitions made from the 10th October 2017 up to the 31st December 2024 | The guidelines state the notice required under Article 51 of the Duty on Documents and Transfers Act must have been submitted to the Commissioner on or before the 28th February 2025; this is the period the page itself states, not tax year 2026. |
Drafted by OpenAccountants. Not yet reviewed or approved by a named accountant.
Other Malta computations in the OpenAccountants Tax Library.
Duty on documents and transfers on the buyer — Buying Property figures
| What | Value | Note | | --- | --- | --- | | Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/buying-property | | Provisional duty at promise of sale stage | 1%, paid by the purchaser | Charged "based on the market price or transfer value as per contract, whichever is the higher". | | Time limit to present the promise of sale to the Property Tax Directorate | Within 21 days | The promise of sale is to be presented to the Property Tax Directorate of the Office of the Commissioner for Tax and Customs within that period. | | Additional duty (penalty) where an architect's valuation raises the value | 20% of the duty due | The claim to the buyer includes the duty due together with the additional duty based on the difference in the value of the property transfer. | | Interest where the claim is not paid | 0.75% for every 30 days or part thereof | Interest "shall start accruing after the expiration of three months from the date of notification of the original assessment". | | Time limit to object to an assessment | Within thirty days from the date of service of assessment | An objection in writing is valid only if it specifies the valid grounds it is based upon. |https://mtca.gov.mt/personal-tax/property-taxes/buying-property
Duty on documents and transfers on the buyer — General Information on Duty figures
| What | Value | Note | | --- | --- | --- | | Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/general-information-on-duty | | Worked example given on the page | Declared price €200,000; duty payable on contract €10,000; provisional duty payable €2,000 | The page gives this as its own illustration of the 1% provisional duty paid by the purchaser at promise of sale stage. | | Tolerance between the declared value and the market value established by the department's architect | 15% | The page states "the law allows a 15% tolerance between the declared value and the market value established by the department's architect". | | Issue of receipts after submission of the notice of transfer (DDT1) | Normally not later than 3 weeks from the date of submission | Stated for receipts issued by the Property Tax Directorate. | | Time limit to present the promise of sale to the Property Tax Directorate | Within 21 days of the actual signing | Stated on the same page. |https://mtca.gov.mt/personal-tax/property-taxes/general-information-on-duty
Duty on documents and transfers on the buyer — Promise of Sale figures
| What | Value | Note | | --- | --- | --- | | Source | all figures below | https://mtca.gov.mt/personal-tax/property-taxes/promise-of-sale | | Provisional duty payable when the notary registers the promise of sale | 20% of the duty payable on the final deed | Registered by the notary within 21 days from the signing of the promise of sale agreement, together with that payment. |https://mtca.gov.mt/personal-tax/property-taxes/promise-of-sale
Duty on documents and transfers on the buyer — Guidelines (second-time buyers) figures
| What | Value | Note | | --- | --- | --- | | Source | all figures below | https://mtca.gov.mt/docs/default-source/documents/guidelines-stb.pdf?sfvrsn=cae8b349_1 | | Second-time buyers scheme (SL 364.17) refund | Duty paid on the first €86,000 of the value of the replacement property is refunded | Applies where an individual transfers a residential property and acquires a replacement residential property within 12 months of the transfer of the replaced property. | | Period stated by the guidelines | Acquisitions made from the 10th October 2017 up to the 31st December 2024 | The guidelines state the notice required under Article 51 of the Duty on Documents and Transfers Act must have been submitted to the Commissioner on or before the 28th February 2025; this is the period the page itself states, not tax year 2026. |https://mtca.gov.mt/docs/default-source/documents/guidelines-stb.pdf?sfvrsn=cae8b349_1
Step 1 — Engage the notary
Engage the notary. For a transfer of property to take place in Malta a notary must be engaged to process property searches and file the necessary deeds; the notary is usually chosen by the buyer and is also engaged to process provisional duty payments on behalf of the buyer. The seller may use an estate agent to find a prospective buyer, and the parties then delegate a notary.[Buying Property](https://mtca.gov.mt/personal-tax/property-taxes/buying-property); [Selling Property](https://mtca.gov.mt/personal-tax/property-taxes/selling-property)
Step 2 — Register the promise of sale and pay provisional duty
Register the promise of sale and pay provisional duty. Once the promise of sale is signed it is presented to the Property Tax Directorate within the period in the table above, and the purchaser pays the provisional duty at that stage. The notice is given on form DDT3, "Notice of Promise of Sale / Transfer of Immovable Property".[Buying Property](https://mtca.gov.mt/personal-tax/property-taxes/buying-property), [Promise of Sale](https://mtca.gov.mt/personal-tax/property-taxes/promise-of-sale); [Downloads](https://mtca.gov.mt/personal-tax/property-taxes/downloads)
Step 3 — Obtain the provisional duty receipt
Obtain the provisional duty receipt. A receipt for provisional stamp duty is issued to the taxpayer once payment is received by the Property Tax Directorate, confirming that the notary has submitted a copy of the promise of sale and that provisional duty has been paid by the buyer.[Buying Property](https://mtca.gov.mt/personal-tax/property-taxes/buying-property)
Step 4 — Decide, before the deed, whether the seller elects out of the final withholding system
Decide, before the deed, whether the seller elects out of the final withholding system. Where the election is available it is made by declaration to the notary at the time of the publication of the deed, provisional tax is paid at the rate in the table above, and the gain or profit is declared in the tax return.[New Property Tax System - Examples](https://mtca.gov.mt/personal-tax/property-taxes/faqs/new-property-tax-system---examples)
Step 5 — Publish the deed and submit the DDT1
Publish the deed and submit the DDT1. Upon signing of the contract the notary publishing the deed submits the DDT1 form at the Property Tax Directorate together with site-plans, a copy of the Public Registry note, the stamp duty payment due by the buyer, the capital gains tax payment due by the seller, and Schedule 8 for residential property only. Schedule 8 is listed as "DDT - Eight Schedule – Physical Attributes of Immovable Property".[General Information on Duty](https://mtca.gov.mt/personal-tax/property-taxes/general-information-on-duty); [Downloads](https://mtca.gov.mt/personal-tax/property-taxes/downloads)
Step 6 — Await the receipts and any valuation
Await the receipts and any valuation. Receipts are normally issued within the period in the table above; at this stage an internal departmental board decides whether an architect is sent to inspect the property to establish its market value, subject to the tolerance in the table above.[General Information on Duty](https://mtca.gov.mt/personal-tax/property-taxes/general-information-on-duty)
Step 7 — Deal with any claim or assessment
Deal with any claim or assessment. Where the architect adds value, the buyer's claim includes the duty due plus the additional duty (penalty), and the vendor is charged the additional duty (penalty) only; unpaid claims attract interest at the rate and from the point set out in the table above.[Buying Property](https://mtca.gov.mt/personal-tax/property-taxes/buying-property), [General Information on Duty](https://mtca.gov.mt/personal-tax/property-taxes/general-information-on-duty)
Step 8 — Object in writing if the assessment is disputed
Object in writing if the assessment is disputed, within the period in the table above, specifying the valid grounds; if no agreement upon objection is reached, the Commissioner issues a Refusal.[General Information on Duty](https://mtca.gov.mt/personal-tax/property-taxes/general-information-on-duty)
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