In Malta a property transaction suffers two major taxing points. The seller is charged 8% on the transaction price. On the other hand the buyer pays 5% duty on the transaction price if the immovable property is located in Malta and 2% if the property is located in Gozo.
As part of the COVID-19 aid package the Maltese government announced measures aimed to stimulate property sales.
By virtue of the new rules sellers will be charged a reduced sales tax rate of 5% while buyers will be charged a flat rate of 1.5% duty on the purchase price irrespective of where the property is located.
The new scheme is applicable up till March 2021.
