Notary Public & Commissioner for Oaths

1

I intend to sell the house in which I reside. Is any tax due?

It depends on whether you have been living in the property for 3 years or more. If yes, then no tax is due. If not, property transfer tax is due at different rates depending on how long ago you acquired the property and under what title.

I had inherited a property and I intend to sell it now. What tax is due?

This depends on whether the inheritance took place before 25th November 1992 or after such date. If it took place before this date, then tax is due at the rate of 7% of the selling price. If the death took place after this date, then one has to see what value was attributed to the property in the causa mortis declaration of the deceased by virtue of which the property came to be registered under your name. One must then determine the difference between such value at the time of the inheritance and the selling price, and pay tax of 12% on the difference.

I had bought a property some years back and now I intend to sell it. I have NOT been residing in this property for the last 3 years. What tax is due?

If you had purchased the property before the 1st January 2004, the final tax due will be at the rate of 10% of the final selling price.

If you had purchased the property in the last five years, the final tax due will be at the rate of 5% of the selling price.

If you had purchased the property more than five years ago but not before the 1st January 2004, the final tax due will be at the rate of 8%.

(The following rates apply for sales taking place froom the 1st January 2015 onwards and where the promise of sale in question was not registered before the 17th November 2014).


In the case of a foreigner selling an immovable property owned in Malta, is there any special procedure that needs to be followed?

Yes, the notary publishing the deed of sale must notify the Director General of Inland Revenue about the proposed sale and the Director General of Inland Revenue will issue a permit for this purpose. Without this permit, the deed of sale cannot be published. This permit will be issued as long as the seller has no pending dues with the Inland Revenue Department.

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