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Buying off-plan

Buying off-plan in Malta, step by step

Reviewed and approved by Neil Bennett on 2026-10-26 · updated 2026-10-22

Rates may changeMalta’s Budget 2027 is due on 26 October 2026. Stamp duty rates and housing schemes can change in a Budget; the figures here were checked on 22 Oct 2026.
AI-generated illustration, not a real property

Buying off-plan means committing to a property that does not exist yet, or not in the form you will live in. In Malta it is common, and it can be a good way to buy, but most of the risk sits in one document signed at the start: the promise of sale. This guide walks through the journey in order. It is general information, not legal advice. Your notary and advocate are the people to ask about your contract.

1. Before you sign anything

  • Check who is selling. Ask for the developer's company name and registration number. Look at buildings it has already finished.
  • Check the permit. Ask for the Planning Authority development permit number for the block and have your perit check that what you are being sold matches the approved plans, including the number of floors and units.
  • Check whether you need an AIP permit. Some non-resident buyers need a permit under the Immovable Property (Acquisition by Non-Residents) Act (Cap. 246) to buy, and that also affects the stamp duty rate you pay2. Your notary will tell you which applies to you.
  • Get the specification in writing. What "shell form" or "semi-finished" means differs between developers. See what shell form means.

2. The promise of sale (konvenju)

The promise of sale binds both sides to the sale on the agreed terms. Under the Civil Code it is not itself a sale, but once accepted it obliges the seller to sell, or pay damages if the sale can no longer be carried out1. Its effect also lapses at the end of the period agreed, or if no period was agreed, three months from the day the sale could be carried out, unless the buyer takes formal legal steps before then1. So the agreed period matters a great deal on a building that is not finished yet. Our promise of sale guide covers the document clause by clause.

The promise must be notified to the Commissioner for Tax and Customs, through a notary or advocate, within 21 days of signing3. Notification carries a provisional payment of 20% of the duty that will be due on the transfer2. At the standard 5% rate that is 1% of the price. The balance is paid on the final deed.

3. The deposit

The deposit is a matter of agreement, not law. The Housing Authority describes 10% as the down payment usually required when the promise of sale is signed, and runs a scheme that helps eligible buyers aged 21 to 39 fund it through a bank loan5. Off-plan contracts often add stage payments as the building rises. Our payment planner lays those out on a timeline.

Ask in writing what happens to your deposit if the developer cannot complete, and whether it is held anywhere other than the developer's own account. Do not assume it is protected; ask your advocate what the contract gives you.

4. Clauses worth negotiating

These are common in Maltese off-plan contracts. None is automatic. Ask your notary or advocate which you need.

  • Bank financing. The sale is conditional on your loan being approved. If the bank refuses, you can withdraw and get your deposit back.
  • Completion date. A date by which the developer must finish its share of the work, including the common parts.
  • Penalties. A fixed amount per month of delay, and a right to withdraw with the deposit returned after a set delay.
  • Permits and compliance. The unit must match the approved permit, and the developer must obtain any compliance certificates before the deed.
  • Specification and common parts. The written specification is attached to the contract, together with the finishes of the entrance, lift, stairs and façade.
  • Plans and area. The plan and internal area are attached, and the contract says what happens if the built area differs.
  • Snagging and defects. How defects found at handover are recorded and put right. See handover and snagging.
  • Validity and extension. A promise of sale period long enough for an unfinished building. An extension must itself be notified to the tax authority within 21 days3.

5. Stamp duty on the final deed

Duty on a transfer of property is charged at €5 for every €100 or part of €100 of the price or value, whichever is higher2. Two concessions matter for most residential buyers:

  • Sole ordinary residence. If you do not need an AIP permit and are buying to make the property your only or main home, the first €200,000 is charged at €3.50 per €100 instead of €52.
  • First-time buyers. For transfers on or after 28 October 2025 that qualify for the residence concession, no duty is charged on the first €200,000. This applies if you have never before bought residential property or land to build a home on; an earlier share of less than 25% of a property is not counted, subject to conditions4.

The stamp duty and total cost calculator applies these rules to your price.

6. The final deed

The final deed transfers ownership. It is published by a notary, and the remaining duty is paid then. On an off-plan purchase the deed is usually signed once the developer has finished its share, whether that is the shell, semi-finished or finished stage, and the common parts.

7. Handover and finishing

After the deed you get the keys. Inspect the unit carefully before or at handover and put defects in writing. Our snagging checklist is a printable list to take with you. If you bought in shell form, this is where the finishing starts.

Coming changes

The Housing Authority opened a public consultation on a Buyers' Charter on 3 September 2026. It is meant to set out buyers' rights, responsibilities and remedies across all residential purchases6. Nothing in it is binding yet. We will update this guide when it is published.

Questions people ask

What does buying off-plan mean in Malta?

It means agreeing to buy a unit before it is built or finished, usually by signing a promise of sale (konvenju) with the developer and paying a deposit. The final deed, and the transfer of ownership, happen later, once the unit reaches the stage agreed in the contract.

How much is the deposit on a promise of sale in Malta?

There is no fixed legal amount; it is agreed between the parties. The Housing Authority describes 10% as the down payment usually required on signing the promise of sale. Off-plan contracts may also add stage payments before the deed.

What happens if the developer misses the completion date?

That depends on what the promise of sale says. Buyers commonly negotiate a completion date with a penalty, a right to withdraw with the deposit returned, or both. Without such a clause your position is weaker, so agree it before you sign and ask your notary or advocate to review it.

Is stamp duty paid on the promise of sale?

Part of it. The promise of sale must be notified to the tax authority with a provisional payment of 20% of the duty due on the transfer, and the balance is paid on the final deed. At the standard 5% rate that provisional payment works out at 1% of the price.

Sources

  1. Legislation Malta, Civil Code (Cap. 16), article 1357 (promise to sell). · checked 22 Oct 2026
  2. Legislation Malta, Duty on Documents and Transfers Act (Cap. 364), articles 3(6), 32(1) and 32(4). · checked 22 Oct 2026
  3. Legislation Malta, Duty on Documents and Transfers Rules (S.L. 364.06), rule 10. · checked 22 Oct 2026
  4. Legislation Malta, Legal Notice 305 of 2025, Exemption of Duty in terms of article 23 (Amendment) Order, 2025. · checked 22 Oct 2026
  5. Housing Authority, 10% Deposit Scheme. · checked 22 Oct 2026
  6. Housing Authority, Launch of a Public Consultation on the Buyers' Charter (3 September 2026). · checked 22 Oct 2026

General information, not legal, tax or financial advice. Ask your notary, advocate or perit about your own purchase. Provenance: drafted with an AI model (Claude, Anthropic) from the sources listed, and edited for this site.