Government Schemes

Malta Real Estate Government Schemes

Government schemes in Malta & Gozo

Malta and Gozo government schemes

Buying property in Malta can be a daunting task, particularly if it’s your first time. Before even figuring out the buying process and beginning your search, there’s the crucial question of your finances: making sure everything is in order and working out what you can afford.

Buying property in Malta is likely to be one of the biggest and most important financial decisions you’ll ever undertake. So, it’s vital to ensure that you’ve explored every avenue available to you before you set off. You wouldn’t want to miss out on your dream home because you didn’t know about an option that might have helped you get there!

Fortunately, Malta offers a number of government schemes that could help you in your journey towards becoming a homeowner, whether you’re a first-time buyer, looking to move up the rungs, or in the Malta property market for an older home in need of work as a second-time buyer.

Here is our round-up of everything you need to know about the government schemes that are currently available in Malta.

Malta first time buyers

First time buyers scheme

Anyone looking to take their first steps onto the property ladder and purchase Malta real estate for the first time can benefit from an established scheme for first-time buyers. This first-time buyer scheme grants an exemption on stamp duty on the first €200,000 of their property value.

If your chosen Malta real estate is in an Urban Conservation Area (UCA), or if it’s more than 20 years old and has been vacant for at least seven years, as a first-time buyer you’ll also be eligible for a grant of €15,000.

Furthermore, the Maltese government announced plans for a new grant for all first-time buyers in Malta of €10,000 over 10 years, irrespective of income. Though not yet finalised, the grant is intended to begin retroactively for all contracts signed after January 1, 2022.

Real estate for first time buyers

First time buyers property

Malta second time buyers

Second time buyers scheme

Second time buyers in Malta or Gozo involve people who because of family expansion or are looking to downsize their current home, want to purchase a property for the second time. Furthermore, second-time buyers in Malta can also purchase another property on the property market as an investment (buy-to-let) with which they earn income. Read more about 7 things to look out for when buying a family home.  

Second-time buyers, meanwhile, will get the same exemption on the first €86,000 of their replacement property, or the first €150,000 in the case of people with a disability or their guardians. View the latest Malta real estate available for sale on our property market specifically for second time buyers. 

Real estate for second time buyers

Second time buyers property

Gozo property schemes

Buying property in Gozo scheme

Special government schemes are also available for those with an eye on Gozo’s fast-growing property market and buy a property for sale in Gozo, Malta’s sister island.

Under a recently extended measure, anyone buying residential property in Gozo will pay just €2 per €100 in duty. Meanwhile, the first-time buyers grant for properties in Urban Conservation Areas (UCA), or older vacant properties, is increased to €30,000 for homes in Gozo, double the comparable grant for Malta real estate.

Gozo Real Estate

Gozo real estate for sale

Traditional and restoration schemes

Buying traditional homes schemes

For those looking to buy property in Malta and Gozo like houses of character and other traditional properties, a new scheme introduced in the 2022 government budget provides a complete exemption from capital gains tax and stamp duty on the first €750,000 of properties located in Urban Conservation Areas (UCA).

Urban Conservation Areas

The UCA is a special designation for areas in village cores with limitations on development intended to preserve their traditional fabric.

20 years old vacant properties

The same benefit also applies to buying Malta property more than 20 years old which has been vacant for more than seven years, regardless of where it is located, as well as to new properties built in a typical and traditional Maltese style and architecture.

VAT refund

Owners of these Malta properties, both current and future, can also benefit from a VAT refund of up to €54,000 on the first €300,000 in costs to restore and finish the property. Subject to certain conditions, costs relating to materials, labour, equipment hire, professional fees, planning fees and other government charges can all be eligible, cutting a large chunk off your bill for fixing up your new home.

Traditional Real Estate

Traditional Malta and Gozo real estate

Equity scheme

Equity Sharing scheme

The Equity Sharing Scheme allows lower-income individuals and families who cannot afford to buy a property in Malta or Gozo on their own to purchase an affordable home with the help of the Housing Authority.

Under the scheme, applicants can buy at least 50 percent of a Malta property worth up to €200,000 in total value, with the remaining share purchased by the Housing Authority. The homeowner has to put up the 10 percent deposit at the promise of sale and will also have to buy back the Housing Authority’s share in the property after 20 years, at the original price paid.

The scheme, which was first made available in 2019, was originally accessible only to those aged over 40, but was recently extended to anyone 30 and over. Applicants, whether individuals or couples, will need to show that their income is below €25,000 for those aged 30 to 34, €30,000 for 35 to 39, and €40,000 for over 40s.

Affordable homes in Malta and Gozo

Affordable Malta and Gozo real estate

Buy with us

Ready to get started?

At JK Properties, our team of experienced real estate agents are professionally trained and fully equipped with the tools needed to guide you through the entire buying Malta property process. This process involves; finding and securing your dream home that meets your needs with ease. 

Get in touch with us today either by contacting one of our agents or by sending us a message to get started today! 

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