Buying off-plan in Malta 2026: stage payments, VAT and the 15-year liability
Buying off-plan means paying for a home you cannot walk through yet. You are buying a set of drawings, a specification sheet and a developer's promise about a date. That is not a reason to avoid it. Off-plan is often the only way to get a new three-bedroom in a good location at a price that still makes sense. It is a reason to read the paperwork more carefully than you would for a finished flat, because on an unfinished building the paperwork is the property.
In short: in Malta an off-plan purchase runs on the same konvenju and final deed as any other sale, but the konvenju has to describe a building that does not exist yet. There is no VAT on the purchase, the standard duty is 5% unless a relief applies, banks release the loan in stages against an architect's certificate, and there is no statutory cooling-off if the developer is late. Your protection is whatever the contract says.
What the off-plan konvenju has to pin down
If you have already read how the konvenju, the notary and the final deed work, you know the promise of sale is the document that binds both sides. On a finished property it describes what you saw. On an off-plan property it has to describe what you will get, and anything it leaves vague is something the developer can decide later.
Five things deserve their own clause:
- The approved plans. The Planning Authority drawings for your unit, attached to the contract, with the floor area stated.
- The specification schedule. Tiles, apertures, sanitary ware, kitchen, air-conditioning points, with brands or grades. "High-quality finishes" is not a specification.
- What "shell form" or "finished" means for this project. Shell form has no statutory definition. In practice it usually means the structure and the external envelope are complete, with no internal finishes, plumbing or electrics. Write down exactly what is included.
- The completion date. A real date, not "estimated summer".
- A penalty for delay. A fixed amount per month of delay, deducted from the balance. Without it, a late handover costs the developer nothing.
How the money moves
On a resale, the 10% deposit you pay on the konvenju normally sits with the notary until the deed. On off-plan developments that custom often changes. Developers frequently ask for the deposit to be paid to them directly, to fund construction, and offer a lower price in return.
That can be a fair trade, but understand what you are trading. Once the money is with the developer, the notary is no longer holding it for you. If you agree, ask for a bank guarantee from the developer's bank covering the deposit. Not every developer will give one. Its absence is information in itself.
After the deposit, payments usually follow the building. A typical schedule looks something like this, though every project negotiates its own:
| Stage | Typical share of the price |
|---|---|
| Konvenju | 10% |
| Structure complete (shell) | around 30% |
| Finishes complete | around 30% |
| Final deed and handover | balance |
If you are borrowing, the bank will not release the whole loan on day one. It releases tranches as each stage is reached, and each release needs a certificate from a warranted perit confirming the work is done. That is good for you: your debt only grows as the building does.
VAT or duty?
A surprising number of buyers expect 18% VAT on a new apartment. There is none. Under the VAT Act the sale of immovable property is an exempt supply, so the developer does not add VAT to your price.
What you pay instead is duty on documents, at a standard 5% of the price or market value, whichever is higher. Part of it is paid on the konvenju and the balance on the deed. If this is your first home, the first €200,000 is exempt; the details are in our first-time buyer guide.
If the developer is late
Maltese law gives you no automatic right to walk away or claim a refund because a completion date passes. There is no statutory cooling-off period for off-plan property. What you have is the contract, and the Civil Code, which enforces an agreed penalty clause as written.
This is why the delay clause above matters more than the brochure. A clause of, say, a fixed sum per month of delay gives the developer a reason to finish and gives you compensation if they do not.
The same logic applies to the deposit if the sale collapses. Maltese courts distinguish between a deposit paid "on account of the price", which is generally returned if the promise expires without a deed, and a deposit the contract expressly makes forfeitable. In February 2026 the First Hall of the Civil Court ordered a developer to refund €250,000 in deposits on five apartments for exactly that reason. Read which kind of deposit your konvenju creates before you sign it.
How the bank values something that is not built
The bank's perit values the unit from the approved drawings, the specification and comparable finished properties, and gives an expected value on completion. The loan is then capped by the Central Bank's borrower-based measures:
- up to 90% of value if it will be your home (Category I)
- up to 75% if it is a second home or an investment (Category II)
If the valuation comes in below the price, the gap comes out of your pocket, not the bank's. Our guide to how much deposit you need works through the arithmetic.
The checks worth asking for
A good developer will not mind these questions. A developer who does mind them has told you something useful.
- Full development permission for the block, not an outline permit or a pending application. Check the permit number on the Planning Authority website.
- Commencement notice filed, and the Building and Construction Authority requirements met, including site insurance and the third-party guarantees for neighbouring property.
- Compliance certificate before the final deed. It confirms the building matches its permit and is what permanent water and electricity depend on.
- SDA status, only if you are a non-EU buyer relying on it. Check the statutory name, not the brochure name.
Fifteen years, not ten
Marketing material sometimes promises a "10-year structural guarantee". The law is stronger than that. Article 1638 of the Civil Code makes the perit and the contractor liable for fifteen years if a building collapses or shows clear danger of collapse because of a construction or ground defect. A contract cannot give you less than the law does. Keep the names of both on file.
Questions buyers ask
Do I pay VAT on a new apartment bought off-plan in Malta?
No. The sale of immovable property is VAT-exempt. You pay duty on documents, normally 5%, unless a first-time buyer or other relief applies.
Does the bank release the full mortgage when I sign the konvenju?
No. The loan is released in stages as construction milestones are reached, each one certified by a perit.
Can I get my deposit back if the developer misses the completion date?
Only if the contract says so. There is no statutory refund for delay. Negotiate a delay penalty and, if the deposit goes to the developer, a bank guarantee.
What does "shell form" include?
There is no legal definition. It usually means structure and external envelope only. The konvenju should list exactly what is and is not included.
Is there a structural warranty on a new building?
Yes. The perit and the contractor are liable for fifteen years under Article 1638 of the Civil Code for serious structural defects.
How much can I borrow on an off-plan home?
Up to 90% of the bank's valuation for your own home and up to 75% for a second home or investment, subject to the bank's own assessment.
Before you reserve
The best off-plan purchases we see have one thing in common: the buyer asked for the contract before falling in love with the render. If you are looking at a project now, send us the name. We will tell you what the permit says, what the specification leaves open, and what we would ask the developer before you pay a reservation. You can start with our properties for sale in Malta.
Sources