Malta’s property market has seen steady growth for decades, with prices estimated to have tripled since the early 2000s. And the momentum hasn’t let up—data from the National Statistics Office (NSO) confirms that property values continued to rise throughout 2024.
As prices climb, many buyers are asking how to make a smart move in a market that remains highly competitive. While strong demand is clearly driving growth, it pays to be well-informed—especially about the range of government support available. From stamp duty and income tax relief to generous VAT refunds, knowing what to look for can help you decide not only where to invest, but what type of property could make you eligible for these incentives.
In this article, we explore what’s fueling demand in Malta’s property market and outline the key support measures in place—from grants to tax exemptions—to help you make the most of the opportunities available.
What is Fueling the Growth of Malta Property Market
This rising demand for property is closely linked to population growth and tourism. Since 2000, Malta’s population has grown from around 380,000 to approximately 540,000 — a surge of over 40%. Alongside this, tourism has almost tripled, with nearly three million visitors arriving in 2023 compared to just over one million in 2007. These trends have fueled the demand for both residential housing and short-term rental properties, particularly in key urban and coastal areas. The influx of foreign workers, digital nomads, and holidaymakers has made property in Malta an increasingly attractive investment, with steady returns and sustained demand keeping the market buoyant.
If you live in Malta, you’ll know that a crane or construction site is rarely far from view. Between 2018 and mid-2024, around 62,417 new dwellings were approved, according to the National Statistics Office. In the last quarter of 2024 alone, over 2,200 new units got the green light—nearly three-quarters of them apartments. San Pawl il-Baħar led the way, reflecting strong demand in the north.
Over the same six-year period, Malta’s population grew by around 50,000 people—an increase of roughly 10%. This means the number of new homes approved has significantly outpaced population growth, suggesting that local demand alone doesn’t explain the scale of construction. Instead, the surge in tourism and the appeal of Malta’s buy-to-let market—especially in popular coastal and short-let zones—are playing a major role in driving both development and sustained price growth.
But where are buyers investing?
The NSO’s reports highlight clear trends:
The Final Deeds of Sale provide a telling snapshot of market activity by region. San Pawl il-Baħar led the way in Q4 2024 with nearly 500 transactions, followed closely by Birkirkara, Mosta, and the Gżira–Sliema corridor. Demand remains broad-based, with steady sales across the south and in Gozo.
Premium hotspots like the Northern Harbour area—St Julian’s, Sliema, and Gżira—continue to dominate both in terms of price and volume. But value-seeking buyers are increasingly looking south and towards Gozo, where property prices can be up to 30% lower than in St Julian’s, while still offering solid rental returns.
First-time buyers are gravitating towards more affordable areas in the central and southern regions, where smaller apartments remain within reach.
According to the latest figures, the median price of an apartment in Malta reached €285,000 in 2024, up from €200,000 in 2017—an increase of 42% over seven years. During the same period, median equivalised net income rose by just 37%, indicating that property prices have outpaced wage growth.
Despite this, a recent KPMG report struck a more optimistic tone. It argued that broader affordability hasn’t worsened as much as the headline figures suggest, thanks to low interest rates, accessible lending, and longer mortgage terms. These factors have helped many buyers—especially first-time homeowners—bridge the gap between rising prices and slower income growth. In short, while housing is undeniably more expensive, financing a home has remained manageable for many, at least for now.
Who can buy property in Malta?
EU citizens, including Maltese nationals, who have lived continuously in Malta for at least five years can freely purchase property without needing a permit under Chapter 246 of the Laws of Malta. .Non-EU citizens are generally not permitted to buy property in Malta unless granted a permit under the same law. However, in Special Designated Areas (SDAs), there are no restrictions, allowing individuals to buy property without needing a permit.
For those who haven’t lived in Malta for five years, an AIP permit is required to purchase property outside SDAs. This permit allows for the purchase of one property, which cannot be rented out. In SDAs, individuals can buy and rent multiple properties without needing an AIP permit.
Buying Property in Malta? Essential Contract Clauses to Safeguard Your Interests
Good to Know: Incentives for Property Buyers in Malta and Gozo
The Maltese government offers several attractive incentives aimed at helping buyers and encouraging property investment. For example:
Grants
The first-time buyer grant has been extended and offers €1,000 every year for ten years for properties valued up to €500,000. Malta also offers several grants and financial incentives for properties located within Urban Conservation Areas (UCAs). These initiatives aim to encourage the restoration and preservation of the nation’s architectural heritage, but more on this below. If the property is in Malta the grant is for €15,000 and €40,000 for properties in Gozo (for deeds signed between January 1, 2025, and December 31, 2026.)
Reduced Stamp Duty
In Malta, the value of a property for stamp duty purposes is based on its official market value, not simply the agreed price between buyer and seller. This market value is determined by a government-appointed assessor, who evaluates the property using objective criteria such as its location, condition, size, and other relevant characteristics. This ensures that stamp duty is calculated fairly and consistently, based on the property’s true market worth. Typically stamp duty is paid at 5% of the total sales prices with 1% paid at the konvenju (promise of sale) and 4% on the final deed
First-time buyers in Malta currently benefit from a generous stamp duty exemption. If you purchase your first property by the end of 2025, you will :pay zero stamp duty on the first t €200,000, if we take the average property price of t €285,000, 5% will be paid on the remaining €85,000, so the total amount due will be €4,250, this represents a €10,000 saving
Additionally when an individual sells their residential property (the original property) and buys another residential property (the replacement property) within 12 months, they can claim a refund of the stamp duty paid on the first €86,000 of the replacement property’s value.
Withholding Tax Rates
In Malta, when selling a property, the seller is typically subject to a final withholding tax on the property’s transfer value. The standard rate is 8% of the property’s transfer value and is paid by the seller.
However, there are specific circumstances where different rates apply:
- 5% Rate: If the property is sold after five years from its acquisition date and does not form part of a development project.
- 12% Rate: In certain situations, such as properties that were part of a promise of sale registered before 17th November 2014, a rate of 12% may apply.
It’s important to note that these rates are applied to the property’s transfer value, which is generally the higher of the market value or the contract price.
Additionally, specific exemptions and reductions may be available, depending on factors such as the property’s use as the seller’s main residence or its location within designated areas like Urban Conservation Areas (UCAs).
Stamp Duty and Tax Exemptions for Certain Property Types
Planning Authority Map Showing Urban Conservation Areas in Malta and Gozo
Properties in Urban Conservation Areas (UCAs)
Properties located in a UCA (confirmed by the Planning Authority) also benefit from income tax and stamp duty exemptions on the first €750,000. Standard tax applies on any excess.
Old and Vacant Properties
Homes built at least 20 years ago and vacant for 7+ years (confirmed by an architect and ARMS) qualify for full income tax and stamp duty exemptions on the first €750,000 of the sale price. Any amount above that is taxed normally.
Traditional Maltese-Style Developments
Properties developed to include approved traditional Maltese features can qualify for a stamp duty refund on the first €750,000. Tax and duty must be paid upfront, and the refund is granted once the development is completed and approved by a designated board.
Conditions and Penalties
To keep the benefits, the property must not be demolished or split into more units than originally allowed. Breaking these conditions means repaying the exempted tax or duty.
No Double Benefits
If a property qualifies for other stamp duty benefits (e.g. on donations to descendants), buyers must choose which scheme to use.
VAT Refund
The VAT refund scheme has been extended and revised to ensure equal benefit for single buyers and married couples. Homeowners can also claim a VAT refund of up to €54,000 on the first €300,000 spent on eligible renovation works. To qualify, the property must be a privately owned residence that either: is newly built using traditional Maltese architectural features or. is located in a UCA or was built over 20 years ago and has been vacant for more than seven years,
Summary
These incentives show just how committed the government is to encouraging both home ownership and the reuse of existing buildings. With grants, tax exemptions, and VAT refunds available, there’s real support for first-time buyers and those willing to restore older properties or invest in Malta.
So, is now a good time to buy?
If you’re looking to take your first step onto the property ladder, or if you’ve got your eye on a character home in need of love, the answer might well be yes. The financial support on offer can make a real difference—especially if you’re prepared to take on a renovation or restore a property in a UCA. These aren’t just handouts; they’re designed to bring long-vacant homes back into use and boost the quality and quantity of housing across Malta and Gozo.
Of course, timing always depends on your own situation—but from a policy perspective, the message is clear: the government are supporting buyers and they’re backing it with cash. If you’re unsure where to begin or want clear advice, our consultancy services are here to guide you. We help buyers navigate available schemes, understand eligibility, and make informed decisions—so you can move forward with confidence.
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