Save on Your First Home Purchase in Malta

Buying your first home in Malta has never been more appealing, thanks to a range of government schemes and tax incentives designed to ease the financial burden. So, if you’re in the position where you’re purchasing a newly built property, restoring an old home, or carrying out finishing works, several grants and exemptions can help reduce your costs.

Below is a breakdown of the first-time buyer benefits available in Malta for 2025, including eligibility requirements, how much you can save, and how to apply.

Charming home in Malta

€10,000 First-Time Buyer Grant

Die First-Time Buyer Grant provides direct financial assistance to individuals purchasing their first residential property in Malta. This scheme helps young buyers manage early homeownership expenses by offering a grant of €10,000, paid in instalments over 10 years.

Key Features

• Grant amount: €10,000 (€1,000 per year for 10 years)
• Who qualifies: Maltese citizens and EU nationals purchasing their first home as a primary residence
• Home loan requirement: Property must be financed through a bank loan; the grant is paid into the same account used for repayments
• Joint applicants: Couples where one person previously owned a home are eligible for a reduced grant of €5,000 (€500/year)
• Application deadline: Submit your application by 31st March of the year following the property deed date
• Disqualification: The grant is revoked if the property is sold before 10 years have passed or if it was not financed by a bank loan

👉 Apply directly via the Housing Authority website

Stamp Duty Exemption for First-Time Buyers

Malta bietet stamp duty exemptions to help reduce the upfront cost of buying your first property. Eligible buyers pay no duty on the first portion of the property’s value.

Exemption Amounts (based on purchase date)

• Before 15 October 2019: First €150,000 exempt
• 15 October 2019 – 20 October 2020: First €175,000 exempt
• 20 October 2020 – 1 January 2026: First €200,000 exempt

Kriterien für die Zuschussfähigkeit

• The property must be your sole and ordinary residence
• You must not have previously acquired immovable property inter vivos (excluding shares under 25% or a garage of up to 30m²)
• The exemption is pro rata, based on the share of property you are acquiring

Zusätzliche Hinweise

• Buyers who have already used this exemption or received similar relief under Article 32(4)(a) of the DDTA are not eligible
• Applications must be filed by 28 February 2026
• The notary handling the deed ensures all required declarations are made

👉 For more information, visit the Malta Stamp Duty Guidelines

VAT Refund on Restoration and Finishing Works

If you’re considering buying a character-filled property in Malta, the VAT refund on restoration offers a valuable financial boost. It’s particularly attractive to buyers who wish to breathe new life into traditional homes while benefiting from government support.

The scheme was introduced by the Ministry for Finance to encourage restoration and sustainable development in designated areas. Eligible properties include residential buildings located in Urban Conservation Areas (UCAs), homes that are over 20 years old and have been vacant for more than 7 years, as well as newly built properties that meet specific design criteria.

This initiative not only helps reduce renovation costs but also promotes the preservation of Malta’s unique architectural heritage, making it a smart choice for both homeowners and investors.

Eligible Property Types

• Städtische Erhaltungsgebiete (UCAs): UCAs often feature beautiful, historic buildings that need careful restoration. If you’re purchasing a home in an UCA, you may be eligible for VAT refunds on restoration works that begin after 12th October 2021.

• Old Properties That Have Been Vacant for Over 7 Years: If you’re looking to restore an old home that’s been vacant for more than 7 years, you could benefit from the VAT refund. These homes often come at a lower price but require significant investment in renovation.

• New Homes Built in Conformity with Approved Design Criteria: If you’re building or purchasing a new property that meets specific design and planning guidelines, you may also qualify for a VAT refund on finishing works.

Grant Amounts

• Refund of 18% and/or 10% of eligible costs
• Capped at €54,000 per property
• Applies to works carried out from 12 October 2021 onward
• Applications accepted between 1 January 2025 and 31 December 2026

Who Can Apply

• Must be a Maltese resident aged 18 or over
• Must own the eligible property
• Available for both new purchasers and current homeowners

Important Conditions

• The property must not be split into multiple residential units
• If a division occurs after receiving the grant, the full amount must be repaid

👉 Learn more and apply via the Restoration Grant Guidelines

Tips for First-Time Buyers in Malta

To make the most of the available benefits and streamline your home-buying process, here are a few practical tips:

Consider Long-Term Implications: Think beyond just the initial cost savings. Buying a home in Malta is an investment, and you’ll want to make sure it fits within your long-term plans. Take into account potential property value appreciation, ongoing maintenance costs, and your lifestyle needs.

Work with a Professional: A real estate agent who understands the ins and outs of Malta’s property market and government incentives can be invaluable in guiding you through the process.

Prepare Financially: Make sure you have all the necessary documents in place for your home loan application. Additionally, budgeting for potential renovation costs (especially if you’re applying for the VAT refund on restoration) will ensure that you’re financially prepared for unexpected expenses.

Stay on Top of Deadlines: Missing key deadlines (such as the application deadlines for the grants and exemptions) can lead to lost opportunities. Stay organized and keep track of the necessary paperwork.

Conclusion: Take Advantage of These Benefits Before They Expire

Malta’s property market offers several opportunities for first-time buyers in 2025, from grants to tax exemptions, helping you save on your first home purchase. With the €10,000 First-Time Buyer Grant, stamp duty exemptions, and VAT refunds for restoration and finishing works, these incentives make homeownership in Malta more accessible than ever.

Ensure you apply for these benefits before the deadlines, and consult with professionals to ensure you meet all eligibility requirements. By doing so, you can take full advantage of these financial benefits and make your dream home a reality.

For more information on Malta’s property market and government incentives, check out our Malta Property Market Update and Government Incentives article.