In response to the economic impact of COVID-19, the Government of Malta implemented a temporary reduction in stamp duty and withholding tax for property transactions. From June 9, 2020, to March 31, 2021, the stamp duty for buyers was reduced from 5% to 1.5% on the first €400,000 of a property’s value. Sellers benefited from a reduction in withholding tax from 8% to 5% during the same period.
This measure aimed to stimulate the property market and support the economy during the pandemic. The scheme was extended until June 2023, with the stamp duty reduction applying to the first €400,000 of a property’s value.
As of now, the stamp duty rate for property purchases in Malta and Gozo has returned to the standard 5%. However, first-time buyers in Gozo can still benefit from a reduced stamp duty rate of 2% on property purchases.
These fiscal measures have been part of the government’s efforts to support the property market and the broader economy during challenging times.
