Malta Budget 2026: Key Housing & Property Updates
The 2026 Budget brought a strong focus on housing, home ownership, and property incentives aimed at supporting buyers across different life stages. From first-time buyer support to co-ownership schemes and tax adjustments, here’s a breakdown of the most important takeaways for homeowners and buyers in Malta.
Inheritance & Property Transfer Taxation
For individuals inheriting a property they already live in, the tax rate on the first €400,000 of the property’s value is set at 3.5%. The First-Time Buyers Scheme, which assists with the 10% home loan deposit, now applies to properties valued up to €250,000, increased from €225,000. Separated individuals seeking to purchase a new home will benefit from a higher property value limit of €350,000 for eligibility under housing support schemes.
First-Time Buyer Support & Home Purchase Incentives
The First-Time Buyers Scheme will now be enshrined in law, confirming its long-term continuation. Eligibility will be limited to residential properties only, excluding commercial ones. The scheme that helps with the 10% home loan deposit will also have its property value limit raised from €225,000 to €250,000. The Equity Sharing Scheme is being expanded to support 25–30-year-olds who face challenges securing full financing. Under this initiative, the buyer funds half the purchase price while the Housing Authority covers the other half, repayable over 20 years.
Equity Sharing & Co-Ownership Schemes
The equity sharing model, which involves government or Housing Authority co-investment, will now extend to younger buyers aged 25–30 who struggle to obtain full financing. The scheme requires that the state’s share be repaid over 20 years, maintaining the same repayment period as previous versions.
Land Reclamation & Land Use Policy
The government has confirmed that land reclamation off the Freeport (Birzebbuga area) will be limited strictly to industrial, maritime, and port-related uses. This means that no residential or commercial real estate developments will be permitted in these reclaimed areas, focusing instead on infrastructure that supports Malta’s logistical and economic activities.
Housing, Property Tax & Duty Measures
The reduced stamp duty refund scheme for second-time buyers has been extended. Under this measure, second-time buyers can receive a refund on duty paid on the first €86,000 of the replacement property’s value, provided the previous residence is sold and the new property is acquired within 12 months.
UCA (Urban Conservation Area) Initiative
The Prime Minister confirmed during the Budget 2026 announcement that the UCA initiative will be extended. However, it has not yet been announced under which conditions this extension will take place.
Conclusion
The Malta Budget 2026 builds on recent housing strategies aimed at promoting affordability and accessibility while encouraging sustainable development. With increased support for first-time and young buyers, extended relief for second-time purchasers, and clear direction on land use, the government continues to prioritise home ownership and long-term stability in the property market. Zanzi Homes remains ready to assist buyers and sellers in navigating these new measures and making the most of the opportunities they present.