First-time buyer in Malta 2026: duty, grants and the 31 December deadline
If you are buying your first home in Malta, two things happened in the last year that change the arithmetic. The stamp duty exemption on the first €200,000 stopped being a scheme that had to be renewed every budget and became permanent. And the money attached to older property - the €15,000 grant, the €40,000 Gozo grant, the restoration refund and the €750,000 relief - is now on a countdown that ends on 31 December 2026.
Put plainly: the relief on an ordinary purchase is no longer going anywhere, so there is no reason to rush on that account. The relief on a village-core or long-vacant property is worth up to six figures and expires in roughly four months. A Maltese purchase runs two to three months from konvenju to deed. If an older property is on your list, the calendar is already the constraint.
The duty exemption, and what actually changed
A first-time buyer pays no duty on the first €200,000 of the price. Above that, duty is charged at the standard 5%. The maximum saving is €10,000.
| Purchase price | First-time buyer pays | Other buyer pays |
|---|---|---|
| €180,000 | €0 | €9,000 |
| €250,000 | €2,500 | €12,500 |
| €320,000 | €6,000 | €16,000 |
The exemption sits in Legal Notice 305 of 2025, which amended the subsidiary legislation under the Duty on Documents and Transfers Act with effect from 28 October 2025. What made it permanent was the removal of the end date that every previous version carried. There is now no sunset clause.
The condition set that matters:
- The property must be acquired to establish your sole, ordinary residence.
- You must not have previously acquired, between living people, any immovable property used or intended as a residence. That includes land or airspace bought to build a home on, and property carrying a residential development permit or a pending application for one.
- The notary records a declaration in the deed and must warn you about its truthfulness. Evidence goes to the Commissioner for Tax and Customs with the deed.
The change most people have not heard about
Until 28 October 2025, owning almost any property in your past disqualified you. The only thing ignored was a garage of 30 square metres or less. Since that date, a previous purchase of non-residential property no longer disqualifies you at all - a commercial premises, agricultural land, a large garage.
Separately, a previous undivided share is ignored where it amounts to less than 25% of the property's real value, provided you made no other acquisition of that property and never used the concession before. If you inherited a fraction of a family property years ago and assumed you had lost first-time buyer status, it is worth checking again with your notary.
The grants, and which ones are running out
The €10,000 grant - live, and wider than it was
This is the Housing Authority's Property Acquisition Grant Scheme, and it is not a lump sum. It is €1,000 a year for ten years, paid each June into the account your loan repayment comes from.
| Who | Total |
|---|---|
| First-time buyer | €10,000 over 10 years |
| First-time buyer with an EU Disability Card, buying after 1 January 2026 | €20,000 over 10 years |
| Couple where it is not the first residence of one of them | €5,000 over 10 years |
Two conditions catch people. You must be buying through a bank home loan - cash buyers are excluded entirely. And you must apply by 31 July of the year following the deed, losing €1,000 for each year you are late. A deed signed in 2026 means applying by 31 July 2027. There is a €25 administrative charge, and the grant stops if you close the loan or transfer the property.
New for 2026 and barely covered anywhere: second-time buyers can now claim. If you previously owned a residential property but no longer own any other one, and your deed is dated after 1 January 2026, you qualify, subject to notarial searches from age 16. If you already drew part of the grant on an earlier home you receive only the balance, up to €10,000 in total.
The older-property money - all of it expires on 31 December 2026
Three separate reliefs attach to the same categories of property: anything inside an Urban Conservation Area, anything built more than 20 years ago and vacant for more than seven, and new build constructed to approved traditional Maltese criteria.
| Relief | Worth | Deadline |
|---|---|---|
| Cash grant, Malta | €15,000 | Deed by 31 Dec 2026, apply within 6 months |
| Cash grant, Gozo | €40,000 | Deed by 31 Dec 2026, apply within 6 months |
| Exemption from duty and income tax on the first €750,000 | Up to €37,500 in duty alone | Transfer by 31 Dec 2026, notice by 31 Jan 2027 |
| Restoration and finishing grant, 18% of costs | Up to €54,000 per property | Works window closes 31 Dec 2026 |
Three details that are commonly got wrong. The Gozo grant was €30,000 for deeds up to the end of 2023 and has been €40,000 since - do not use the old figure. The restoration grant can now be claimed once per property, where the 2021 to 2024 window allowed two applications. And the €750,000 relief benefits the seller as well as you, which makes it a real negotiating lever rather than just a saving.
None of it survives subdivision. Split the property into more units afterwards and the full grant is repayable. We set out how these stack on a real purchase in our guide to buying in Cospicua and the Three Cities, where the incentive package is currently the strongest anywhere in Malta.
How much cash you actually need
The regulatory floor and the real-world number are different, and confusing them is why people start looking six months too early.
Borrower-based measures are set by Central Bank of Malta Directive No. 16, most recently amended with effect from 26 March 2026. As a first-time buyer on your primary residence you are a Category I borrower:
- Loan-to-value capped at 90%, so a 10% deposit is the regulatory minimum.
- Debt-service-to-income capped at 40%, stress-tested with a 150 basis point rate shock.
- Maximum term 40 years, or official retirement age, whichever comes first. For anyone born after 1961 that is 65.
The old exemption for loans under €175,000 has been removed from the directive. If you read that somewhere, it is out of date.
But 90% is a cap, not what banks actually do. The Central Bank's Financial Stability Report for 2025 records first-time buyers borrowing at an average loan-to-value of 80%, with loan service averaging 26.5% of income. The realistic planning number is therefore a 20% deposit, not 10%. On a €250,000 property that is €50,000 rather than €25,000. We go through this in more detail in our guide to how much deposit you need in Malta.
The konvenju and the 1%
Everyone calls it "the 1% on konvenju". The law does not. Article 3(6) of the Duty on Documents and Transfers Act requires a provisional payment of 20% of the duty chargeable. Since standard duty is 5%, twenty per cent of it is 1% of the price - which is where the shorthand comes from.
This matters to you specifically, because as a first-time buyer there is far less duty to take 20% of. At or below €200,000 the chargeable duty is nil, so there should be no €2,000 line on your konvenju. Ask your notary to compute it rather than budgeting the rule of thumb.
The konvenju must be registered with the tax authority within 21 days of signing. Miss it and the promise of sale loses legal validity and the provisional payment is forfeited. The balance of duty falls due at the final deed. Three months is the usual konvenju term, often six on new build.
The rest of the costs
These are market practice, not fixed tariffs, and they are negotiable.
| Cost | Typical |
|---|---|
| Notary | 1% to 2.5% of price, rarely below €1,500 |
| Searches and registration | Around €600 |
| Architect's structural survey | €400 to €800 |
| Bank valuation | €150 to €500 |
| Bank arrangement fee | 0.5% to 1% of the loan |
| Estate agency commission | Paid by the seller, not you |
A first-time buyer at or below the €200,000 exemption ceiling should budget roughly 3% to 7% on top of the price. Above the ceiling, or without the exemption, it runs closer to 7% to 12%.
If the deposit is the problem
Three Housing Authority routes exist for buyers who can service a loan but cannot assemble the cash.
The 10% Deposit Scheme
The bank lends you the deposit as a separate personal loan of up to €25,000 over 25 years, and the Housing Authority pays all the interest on it for the whole term. The home loan covers the remaining 90%, capped at €225,000, and the two together cannot exceed €250,000 - raised from €225,000 in Budget 2026. Only APS Bank and Bank of Valletta participate.
You must be aged 21 to 39, in full-time employment for at least six months, hold assets of no more than €25,000, and own no other habitable property or development land. Income has both a floor and a ceiling, which surprises people:
| Household | Age | Annual income |
|---|---|---|
| Single | 21 to 30 | €19,000 to €35,000 |
| Single | 31 to 39 | €25,000 to €35,000 |
| Couple | 21 to 39 | €19,000 to €35,000 |
The scheme runs for a year from publication or until 300 valid applications are processed, whichever comes first. It can close mid-year.
Equity Sharing
Equity sharing schema For buyers aged 25 and over whose age or income means the bank will not lend enough. Budget 2026 lowered the entry age from 30. You buy at least 50% yourself; the Housing Authority takes the rest, capped at half the value and at €100,000. After 20 years you buy the Authority out at the original price it paid, not at market value. If you cannot, your children or heirs get the chance.
The value cap is €250,000, rising to €350,000 for applicants aged 40 or over buying the remaining share of a former matrimonial home from a former partner. You still pay the 10% deposit yourself. Income ceilings run from €20,000 at ages 25 to 29 up to €40,000 at 40 and over.
Two narrower routes
The New Hope Scheme guarantees a loan of up to €250,000 for buyers who are creditworthy but cannot obtain life insurance because of a past life-threatening illness - you need refusals from two local insurers, or a deferral, or quoted premiums at 250% or more of the average for your age. The Social Loan Scheme offers up to €140,000 through APS, Bank of Valletta and the Foundation for Social Welfare Services with a monthly subsidy on repayments, for households under roughly €20,000 to €22,000 of income.
What the market is doing
Malta's residential property price index stood at 104.19 in the first quarter of 2026, an annual increase of 6.7% and 1.8% on the quarter. Apartments rose 6.9%, maisonettes 5.3%. Those are the most recent published figures.
One warning if you are comparing numbers you have seen elsewhere: the National Statistics Office rebased the index between the Q4 2025 and Q1 2026 releases. The old series was running around 177; the new one reads 104. Placing those side by side as a fall would be nonsense. Compare percentage changes, not index levels.
Affordability is the harder story. A KPMG study found that a young couple on the minimum wage could afford only 2.2% of the properties on the market in 2025, and Central Bank data indicates more than a third of first-time buyers now rely on family support. That is the context in which the grants exist.
A sensible order of operations
- Get a bank pre-approval before viewing. It tells you your real ceiling under the 40% stressed debt-service test, which is usually tighter than you expect.
- Check your first-time buyer status with a notary, particularly if you have ever held a share of a family property or bought anything non-residential. The rules changed in your favour.
- Decide early whether an older property is on the table. If it is, the 31 December 2026 deadline governs your timetable, not your preferences.
- Budget the deposit at 20%, not 10%, unless you are going through the Deposit Scheme.
- Commission an architect before the konvenju, not after. On stone buildings the questions are structural and expensive.
- Register the konvenju within 21 days. This is the notary's job but it is your money at risk.
- Apply for the €10,000 grant by 31 July of the year after the deed. It is easy to forget a year later.
When you know your number, start with our first-time buyer listings, and widen to property across Malta or property in Gozo - where, for the rest of 2026, the grant is €40,000 rather than €15,000.
Frequently asked questions
How much stamp duty does a first-time buyer pay in Malta?
Nothing on the first €200,000, and 5% on anything above that. The maximum saving is €10,000. Since Legal Notice 305 of 2025 the exemption is permanent and carries no expiry date.
Is the first-time buyer scheme in Malta still available in 2026?
Yes, and it no longer needs annual renewal. It was made permanent with effect from 28 October 2025. The schemes that do expire on 31 December 2026 are the separate grants for Urban Conservation Area, vacant and traditional-build property.
Can I still be a first-time buyer if I owned a garage or land before?
Yes, if the property was non-residential. Since 28 October 2025 a previous acquisition of non-residential property no longer disqualifies you. Land bought to build a home on, or property with a residential development permit, does still disqualify you.
Is the €10,000 first-time buyer grant paid as a lump sum?
No. It is paid as €1,000 a year for ten years, each June, into the account your loan repayment is taken from. You must be buying with a bank home loan; cash buyers are not eligible.
How much deposit do I need to buy a house in Malta?
The regulatory minimum is 10%, because Central Bank of Malta Directive No. 16 caps loan-to-value at 90% for first-time buyers on a primary residence. In practice first-time buyers borrow at an average loan-to-value of 80%, so a 20% deposit is the realistic planning figure unless you use the Housing Authority's 10% Deposit Scheme.
What is the €15,000 grant in Malta and when does it end?
A cash grant for first-time buyers of property in an Urban Conservation Area, property built over 20 years ago and vacant for over seven, or new build to approved traditional criteria. It is €15,000 in Malta and €40,000 in Gozo. The deed must be signed by 31 December 2026 and the application made within six months of the deed.
What age can I apply for equity sharing in Malta?
25 and over. Budget 2026 lowered the minimum age from 30. The higher €350,000 value cap applies only to applicants aged 40 or over buying out a former partner's share of a former matrimonial home.
How long is a konvenju valid in Malta?
There is no statutory maximum; it is set by the contract. Three months is normal, six is common on new build. It must be registered with the tax authority within 21 days of signing, along with a provisional payment of 20% of the duty chargeable, or it loses legal validity.
Who pays the estate agent in Malta?
The seller. Agency commission of around 3.5% to 5% plus VAT is conventionally the vendor's cost, not the buyer's.
How much are property prices rising in Malta?
The residential property price index rose 6.7% year-on-year in the first quarter of 2026, with apartments up 6.9% and maisonettes up 5.3%. Note that the index was rebased in 2026, so index levels from earlier releases are not directly comparable.
This article describes the position in August 2026 under the Duty on Documents and Transfers Act as amended by Legal Notice 305 of 2025, Housing Authority scheme conditions published in 2026, and Central Bank of Malta Directive No. 16 as amended with effect from 26 March 2026. Scheme conditions and deadlines change - confirm your eligibility with your notary and with the Housing Authority before committing. This is general information, not tax, legal or financial advice.