🏠 How much tax do I pay when I sell my home in Malta?

With conditions

Quick answer

It depends — the standard rate is 8% of the sale value, but your main home can come out entirely exempt. Since 1 January 2015, selling property carries a final withholding tax of 8% on the transfer value — not on the gain — for property acquired after 2004. The notary withholds the tax and pays it to the MTCA at the deed itself. The myth: that "you pay 12%" or that "you pay on the profit". The old 12% rate, and the option to be taxed 35% on the gain, were removed in 2015. But if the property was your sole ordinary residence, which you owned and lived in for three consecutive years and sell within 12 months of moving out, it is exempt. Other rates: 2% if you sell your own residence within 3 years of buying, 5% if you sell within 5 years and it is not part of a project, and 10% for property bought before 2004. The buyer pays the 5% duty (stamp duty) separately.

📋 The rules

The standard rate is a final 8% tax on the transfer value (not on the gain) for property acquired after 2004.
A main home owned and lived in for 3 consecutive years and sold within 12 months of moving out is exempt.
2% applies when you sell your sole residence within 3 years of buying without meeting the exemption.
5% applies if you sell within 5 years of buying and the property is not part of a project; 10% for pre-2004 purchases.
The notary withholds and pays the tax at the deed; the buyer pays the duty on documents of 5% separately.

🔓 Exceptions

Transfers between spouses, causa mortis (inheritance), or donations to relatives carry different rules and exemptions from the 8% rate.
Property in certain Urban Rehabilitation Areas or under specific schemes may benefit from reduced rates or exemptions.
Where the declared value is below market value, the MTCA can reassess and base the tax on the higher figure.

⚠️ Penalties & fines

The costliest mistake is assuming an exemption you don't qualify for: if you did not hold the property as your main residence for 3 consecutive years, the 8% (or 2%/5%) applies again, and the figure is on the whole value, not on the gain. If the declared value is lower than the market, the MTCA can reassess, demand the shortfall in tax together with interest and penalties, and the deed can be challenged. The notary is responsible for withholding and passing on the tax at the deed; a failure leaves an open liability with the authority. Remember this is separate from the duty on documents of 5% that the buyer pays. Keeping the proof — when you bought, when you lived there, and when you moved out — is what supports the exemption if it is ever checked.

📎 Official sources

Last verified: 2026-07-12

❓ Frequently asked

Do I pay tax on the gain or on the whole price?

On the value — the post-2015 system taxes 8% on the transfer value, not on the profit you make. It is a final withholding tax, and it generally does not deduct the costs or improvements you made on the property before calculating.

Is my main home taxed?

If it was your sole ordinary residence, which you owned and lived in for three consecutive years and sell within 12 months of moving out, it is exempt from the transfer tax. If you do not meet these conditions, you can fall under the 2%, 5% or 8% rate depending on the circumstances.

What happened to the 12% rate?

The 12% rate and the option to be taxed 35% on the gain were removed from 1 January 2015. Today most transfers pay 8% final on the value, so a 12% figure you see online most likely refers to the old system that is no longer in force.

Who pays the duty — me or the buyer?

The duty on documents (stamp duty), generally 5%, is paid by the buyer, while the seller pays the transfer tax. They are two different charges on the same deed, and the notary normally collects and passes on both to the MTCA.

What if I declare a low value?

If the declared value is below market value, the MTCA can reassess and demand the shortfall in tax together with interest and penalties. On top of that, a deliberately low declaration can create bigger legal problems than the tax itself.

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