Malta Budget 2026: Every Property Measure Explained

Budget 2026 quietly delivered some of the most consequential property changes in years. Most coverage focused on the headline figures, but if you are buying, selling, or inheriting property in Malta this year, the details matter more than the headlines. Here is the full picture.

First-time buyer relief is now permanent

For years, the first-time buyer scheme — 0% stamp duty on the first €200,000 of your home's value — was renewed annually, leaving buyers wondering each autumn whether it would survive another budget. Budget 2026 made it permanent.

What this means in euros: on a €300,000 apartment, a first-time buyer pays stamp duty only on the €100,000 above the exemption — €5,000 instead of €15,000. That is a €10,000 saving locked into law.

The €1,000 annual grant for first-time buyers (paid over ten years, €10,000 total) was also retained and made permanent.

Eligibility got wider

One overlooked change: buyers who previously owned non-residential property (a garage, a plot, a commercial unit) still qualify as first-time buyers when purchasing their first home. Previously this was a grey area that caught people out at the notary's office.

Deposit Assistance Scheme extended to €250,000

The Housing Authority's Deposit Assistance Scheme now applies to properties valued up to €250,000, up from the previous threshold. Under the scheme, the Housing Authority covers your 10% promise-of-sale deposit — you repay only the principal, and the government pays all the interest.

This matters because the 10% konvenju deposit is the single biggest cash hurdle for young buyers. On a €250,000 property, that is €25,000 you no longer need saved up front.

At current listing prices, plenty of stock fits under the €250,000 ceiling. On Darna, you will find hundreds of properties under €250,000, concentrated in Msida, Santa Venera, Qawra, Hamrun, and most of Gozo — browse properties for sale and filter by your maximum price.

Inherited homes: reduced rate now covers €400,000

When you inherit a residence and keep it as your home, the reduced 3.5% stamp duty rate now applies to the first €400,000 of value — doubled from the old threshold. Above that, normal rates apply.

On a €400,000 inherited home, the duty bill at 3.5% is €14,000 versus €20,000 at the standard 5% — a €6,000 difference, and considerably more for properties that previously exceeded the old cap.

Second-time buyers keep their refund

The refund scheme for people moving home (selling their residence and buying another) was extended: you can claim back duty paid on the first €86,000 of the replacement property's value, provided you sell the old home and buy the new one within 12 months of each other.

If you are upgrading from an apartment to a townhouse, that is worth up to €4,300 — but the 12-month window is strict, so plan your konvenju dates around it.

What did NOT change

• Standard stamp duty stays at 5% for everyone else.
• Rental income tax remains at the optional 15% flat rate.
• No new property taxes were introduced — Malta still has no annual property tax, no capital gains tax on your main residence (after 3 years of occupancy), and no inheritance tax (stamp duty on transfer applies instead).

The bottom line for 2026 buyers

| Buyer type | Key benefit | Worth up to |

|---|---|---|

| First-time buyer | 0% duty on first €200k (permanent) + €10k grant | €20,000 |

| First-time buyer, deposit-constrained | Deposit Assistance up to €250k properties | €25,000 cash flow |

| Second-time buyer | Refund on first €86k of new home | €4,300 |

| Heir keeping family home | 3.5% rate on first €400k | €6,000+ |

If you qualify for any of these, the cost of buying in Malta in 2026 is meaningfully lower than the sticker price suggests. Start by checking what your budget actually buys across every agency on the island — search all listings on Darna.