Expenses borne by the seller
Estate Agency Fees – Agency Fees are borne by the vendor. Vendors will pay the agreed fee plus 18% VAT on an open agency or an agreed percentage plus 18% VAT on a sole agency. Further details on request.
Capital Gains Tax As from 1st January 2015 the 35% Capital Tax will be replaced. A final withholding tax of 8% will be introduced and calculated on the selling price of the property. Property purchased before 1st January 2004 will pay the rate of 10% as Final withholding tax.
In such cases where homeowners (not a developer) who want to sell property as a residence within 5 years will only pay 5% on the value of their property, whereas those selling property after 5 years will pay 8%. In circumstances where an engaged, married or divorced couples who breakup and one of them buys the property will be exempt from paying the final withholding tax on the sale.
Capital Gains Tax on inherited property (Causa Mortis) Inheritance and Capital transfer tax : There is no inheritance tax system in Malta. However, upon the transfer or transmission upon death) of :
a) Real Estate or shares in a company owning mainly real estate a duty of 5% is payable.
b) Marketable securities (mainly shares in Maltese companies) a duty of 2% is payable.
There is no property tax in Malta. Tax on capital gains arising from the sale of real estate in Malta does exist but residents are exempt if they have resided in the property (as their main residence for three consecutive years).