Buying off-plan
Stamp Duty Malta for First-Time Buyers: Shell and Off-Plan Homes
Buying your first home in shell form or off-plan in Malta? Duty on documents, often called stamp duty, is one of the larger costs you will meet. First-time buyers can usually get relief. But the rules have conditions. And the timing works differently when you buy before a building is finished.
This guide explains how it usually works. It covers the exemption, the thresholds, when duty is paid and a worked example. We are not lawyers or notaries. Your notary is the person who calculates and collects the duty on your purchase. Use this guide to know what to ask.
What duty on documents is
Duty on documents is a tax on certain deeds and transfers. In Malta it applies when immovable property changes hands. The main law is the Duty on Documents and Transfers Act, Cap. 364 1. More detailed rules sit in subsidiary legislation, including the Duty on Documents and Transfers Rules, S.L. 364.06 2.
The buyer normally pays the duty. The notary collects it and passes it to the Commissioner for Revenue as part of the transfer process 1.
This guide does not quote the standard rate or the exemption threshold. These figures are set in the law and have been changed by amending legal notices over the years. One recent example is Legal Notice 305 of 2025, which amended the exemption order made under article 23 of the Act 3. Always confirm the current rate and threshold with your notary or the Commissioner for Revenue before you budget.
The first-time buyer exemption
The Act and its rules give relief to buyers acquiring their first home to live in 1 2. In plain terms, part of the purchase value can be exempt from duty, and the rest is charged at the applicable rate.
Rule 10 of S.L. 364.06 sets out conditions linked to this relief 2. Conditions of this kind usually cover points such as:
- whether you, and any co-buyer, have owned residential property before
- whether the property will be your sole ordinary residence
- declarations you must sign on the deed
- what happens if the conditions are later breached
The exact wording matters. Your notary will need to see that you meet every condition. Do not assume you qualify because you have never bought before. Ask before you sign anything.
Buying with a partner
If you buy with someone else, both buyers' circumstances usually count. If one of you has owned property before, the relief may be affected. Ask your notary how the rules apply to joint purchases.
Thresholds
The exemption applies up to a value limit set in the law 2. Value above that limit is usually charged at the applicable rate. Check the current threshold with your notary, as it has been revised over time 3.
When duty is paid: promise of sale vs final deed
Most shell and off-plan purchases in Malta happen in two stages. First you sign a promise of sale, called the konvenju. Later you sign the final deed of sale. Our guide to the promise of sale in Malta explains this step in more detail.
Duty usually touches both stages:
- At the promise of sale. Article 3(6) of the Act deals with duty connected to a promise of sale 1. In practice, a provisional amount is normally paid when the promise is registered. The notary handles the registration.
- At the final deed. The full duty is worked out on the deed. The provisional amount already paid is usually credited against it. Any first-time buyer relief is applied at this stage, if you qualify 1 2.
Article 32 of the Act also sets out rules that affect how and when duty is charged 1. Your notary will confirm the deadlines, the provisional amount and what happens if the promise lapses or is cancelled.
Why off-plan timing needs care
Off-plan purchases can have a long gap between promise and deed. Sometimes the deed is signed while the block is still being built. During that gap, rates, thresholds or conditions can change by legal notice 3. Ask your notary which rules will apply on the day you sign the deed, and whether anything you pay earlier is affected.
See our guide to buying off-plan in Malta for the wider process.
Worked example
This example shows the method, not real figures. Ask your notary for the current rate and threshold, or enter them in our calculator.
Say Maria is a first-time buyer. She agrees to buy a shell-form flat for €260,000. This price is purely illustrative.
Step 1: Promise of sale. Maria signs the konvenju. The notary registers it and collects the provisional duty due at this stage 1. Call this amount P.
Step 2: Check eligibility. Before the deed, the notary confirms Maria meets the first-time buyer conditions 2.
Step 3: Final deed. The notary splits the price into two parts:
- the part up to the exemption threshold (call it T), which is exempt if she qualifies
- the part above T, which is charged at the applicable rate (call it R)
Duty on the deed = (€260,000 minus T) × R.
Step 4: Credit. The provisional amount P is credited. Maria pays the difference on the deed.
If the price were at or below T, the deed duty could be nil. Whether any of P comes back to her in that case is a question for her notary.
What is not in this sum. The cost of finishing a shell is usually a separate budget. Notary fees, search fees, registration costs and loan charges are also separate. If finishes are included in the sale price, ask your notary how that affects the dutiable value.
The Housing Authority First-Time Buyer Scheme
The Housing Authority runs a separate First-Time Buyer Scheme 4. It is not the same as the duty exemption. It has its own eligibility rules and application process 4. You may be able to use both, but each has its own conditions.
Check the current terms, the support available and how to apply directly on the Housing Authority website or by contacting them 4. We do not quote the figures here because they can change.
Questions to ask your notary
Take this list to your first meeting:
- Do I, and my co-buyer, qualify for first-time buyer relief?
- What is the current exemption threshold and standard rate?
- How much provisional duty is due on the promise, and when?
- Which rules apply if the deed is signed months or years later?
- What happens to the provisional duty if the promise falls through?
- What declarations will I sign, and what are the consequences if circumstances change?
- Are any finishes or extras in the price, and do they affect the duty?
For foreign buyers, also ask whether residence or other status affects eligibility. Your notary or the Commissioner for Revenue can confirm.
Plan the full cost, not just the price
Duty is only one part of what you will pay. A shell also needs finishing, and that cost often comes later, after handover. Our guides on what shell form means and the cost of finishing a shell explain what to expect.
To put rough numbers together, use the cost-to-own calculator at /calculators/. Enter your price and the current rate and threshold your notary confirms, and it will estimate your duty alongside other costs. The same page has a finishing budget calculator based on Turnkey.mt's published rate card. When you are ready to price the work properly, Get finishing quotes from contractors for your shell.
Questions people ask
Do first-time buyers in Malta pay stamp duty?
Duty on documents applies to transfers of immovable property in Malta. The law provides relief for qualifying first-time buyers, set out in the Duty on Documents and Transfers Act and its rules. Whether you qualify, and how much relief applies to your price, should be confirmed by your notary before you sign the promise of sale.
Is duty paid at the promise of sale or at the final deed?
Usually both stages matter. A provisional amount is normally due when the promise of sale is registered, and the balance is settled on the final deed, with the provisional amount credited. Your notary will confirm the amounts and deadlines that apply to your purchase.
Does the exemption apply to off-plan and shell-form property?
The relief depends on the buyer and the property meeting the conditions in the law, not on the finish level. Off-plan purchases can raise timing questions, so ask your notary how the rules apply when the deed is signed before the property is complete.
Is the Housing Authority First-Time Buyer Scheme the same as the duty exemption?
No. The Housing Authority scheme is a separate form of support with its own eligibility rules and application process. Check the current terms directly with the Housing Authority.
Where can I find the current threshold and rate?
They are set in the Duty on Documents and Transfers Act, its rules and amending legal notices. Because these change from time to time, confirm the current figures with your notary or the Commissioner for Revenue rather than relying on older articles.
Sources
- Legislation Malta, Duty on Documents and Transfers Act (Cap. 364), articles 3(6), 32(1) and 32(4). · checked 22 Oct 2026
- Legislation Malta, Duty on Documents and Transfers Rules (S.L. 364.06), rule 10. · checked 22 Oct 2026
- Legislation Malta, Legal Notice 305 of 2025, Exemption of Duty in terms of article 23 (Amendment) Order, 2025. · checked 22 Oct 2026
- Housing Authority, First-Time Buyer Scheme. · 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.