First-Time Buyer in Malta 2026: Stamp Duty, Grants and Schemes Explained

Buying your first home is one of the most important decisions you will make. This guide explains stamp duty, housing grants, financing and buying off-plan with clarity, so you can have an informed conversation with your notary, your bank and the right professional advisers.

The Essentials for First-Time Buyers in Malta

• First-home duty relief: eligible purchasers may be exempt from stamp duty on the first €200,000 of the qualifying property value, potentially saving €10,000. Standard duty is generally 5%, subject to valuation and applicable rules.
• Housing Authority grant: eligible buyers with a qualifying bank home loan can receive €10,000 over ten annual €1,000 payments. Special categories may qualify for €20,000.
• Mortgage financing: qualifying owner-occupier borrowers may access financing of up to 90%, subject to bank underwriting and Central Bank rules. Allow for your contribution and all transaction costs.

Who Counts as a First-Time Buyer in Malta?

The stamp duty exemption generally concerns individuals acquiring their first qualifying residence for use as their sole ordinary residence. Under the rules applicable to transfers from 28 October 2025, a prior acquisition of non-residential property such as a garage or field does not, by itself, disqualify a buyer.

Prior residential acquisitions, including residential airspace or land intended for a residence, require particular attention. Certain minor undivided shares below 25% may be disregarded under specified conditions. Inherited interests and joint purchases require individual assessment by a notary.

Stamp Duty for First-Time Buyers: An Illustrative Calculation

Purchase or assessable value	Illustrative duty if full €200,000 relief applies
€200,000	€0
€250,000	€2,500
€330,000	€6,500
€450,000	€12,500

The notary registers a promise of sale with the tax authorities within 21 days. The standard provisional duty is 1% of the higher of market value or contract value, but the amount actually payable on a qualifying transaction must be confirmed by the notary, taking the relief and registration treatment into account.

The Housing Authority First-Time Buyer Grant

The First-Time Buyer Scheme supports qualifying purchases after 1 January 2022 with €10,000, normally paid €1,000 annually for ten years. A qualifying bank home loan is required. For qualifying first-time buyers with the relevant disability identification, the enhanced amount is €20,000, normally €2,000 annually.

From 2026, certain second-time buyers who no longer own another residential property may also qualify. Joint-purchase cases can receive reduced amounts depending on the buyers’ histories.

Application deadlines, documentary evidence and continuing conditions are governed by the scheme rules. Apply promptly after the deed and obtain written confirmation of eligibility.

Additional Routes to Ownership

10% Deposit Scheme

For eligible applicants aged 21 to 39 buying property valued up to €250,000. A bank finances the deposit through a repayable personal loan, generally over 25 years, with the Housing Authority covering qualifying interest. It is not a gift of the deposit.

Equity Sharing Scheme

Generally for eligible applicants aged 25 or over purchasing property valued up to €250,000, with a specific higher ceiling in certain former-matrimonial-home cases. The Housing Authority may purchase up to 50%, but its contribution is capped at €100,000. The buyer must fund at least half, and repurchases the Authority’s share after 20 years at its original purchase price, subject to scheme terms.

Financing Your Purchase

Under Central Bank of Malta Directive 16, Category I lending generally has:

• a 90% loan-to-value cap;
• a stressed debt-service-to-income limit of 40%, including a 1.5-percentage-point interest-rate shock;
• a maximum maturity of 40 years or retirement age, subject to specified exceptions.

These are regulatory parameters, not guaranteed loan offers. Your bank will assess income, existing commitments, valuation, insurance and the property itself.

Buying Off-Plan with Confidence

1. Choose the right home and review specifications, plans, permits, finishes, common areas and any ground-rent position.
2. Appoint an independent notary and, where appropriate, an architect to review title, permits, contractual obligations and the development.
3. Obtain mortgage approval in principle and check whether the bank will finance your particular off-plan payment schedule.
4. Agree a clear promise of sale covering the deposit, conditions, payment milestones, completion expectations, delay provisions and remedies.
5. At the final deed, confirm duty treatment with your notary; afterwards, submit any eligible grant application within the applicable deadline.

Payment milestones vary between developers and contracts. Bank funds are not necessarily released at each construction stage; do not assume that all off-plan purchases follow the same financing structure. For more detail, see our guide to buying off-plan property in Malta.

Example: a €330,000 Apartment

Item	Amount
Purchase price	€330,000
Illustrative 10% buyer contribution	€33,000
Illustrative 90% mortgage	€297,000
Illustrative stamp duty with full relief	€6,500
Potential duty saving	€10,000
Potential Housing Authority grant	€10,000 over 10 years, subject to eligibility

Budget separately for notarial fees, searches, bank arrangement and valuation charges, insurance, finishing or furniture, and any other contractual costs. The grant is not an upfront reduction of the purchase price or deposit.

Other Property Incentives

Separate reliefs may apply to qualifying properties in Urban Conservation Areas, certain older vacant buildings and developments satisfying approved traditional-design criteria. Some arrangements provide relief on the first €750,000, and separate first-time buyer grants can apply to eligible property categories.

These incentives have distinct requirements and deadlines; they are not automatic, interchangeable or necessarily cumulative with other benefits. Have your notary check the precise scheme in force at deed date.

Frequently Asked Questions

Before You Commit

A carefully chosen home starts with informed decisions. At LJ Projects, we believe thoughtful design, transparent communication and attention to detail should accompany every stage of the property journey, from first enquiry to handover.

For current LJ Projects availability, specifications, prices and delivery schedules, request the latest project documentation directly from our team or see all our new developments in Malta. Marketing details and anticipated dates should never replace the signed contract.

For the wider process, read our complete guide to buying property in Malta.