When purchasing Malta real estate or Gozo property for sale there are three types of buyers. Such buyers consist of first-time buyers, second-time buyers and property investors.
A first-time buyer in Malta and Gozo involves a potential Malta real estate buyer who has not previously owned property in Malta or purchased property for sale from the local property market.
Most first-time buyers in Malta involve first time couples or families who take their first step into purchasing Gozo or Malta real estate to start their family.
As was promised in the 2021 budget, first-time buyers in Malta and Gozo will benefit from:
- No stamp duty on their first €200,000 of the property’s value,
- 1.5% stamp duty is applied for anything over €175,000 and below €400,000; and
- For the first €400,000, income tax on capital gains is lowered at 5%.
A second-time buyer involves individuals who sell their house to buy another residential Malta property. Reasons why buyers search for a second home depends on various factors like:
- Family expansion,
- Property downsizing,
- Wanting a property with a sea view, garden or pool; and many more.
Second time buyers’, as promised in the 2021 Budget, are entitled for a refund of duty on the first €86,000 of the new property (the first €150,000 for people with disability or their guardians).
Furthermore, individuals who sell their house to buy a new property are also entitled for a stamp duty refund of up to €3,000 (or €5,000 if they have special needs), as long as they do not own another home.
Buying Malta real estate and investing in a home with the intention of converting it into a profitable rental (buy-to-let) is a tempting proposition. Buying property as a rental investment is popular on the Maltese Islands, owing to rising demand for such housing from locals, foreign students, employees, and ex-pats who choose to retire here. Unless they desire to acquire their own home, the first and most urgent housing option for all of these is a rental. Learn more about renting Malta and Gozo real estate.