Malta Budget 2027 and Property: What Buyers Keep in 2027

Every October buyers ask the same question at viewings: should we wait for the budget? Budget 2027 arrived on 26 October 2026, and for property it is quieter than the headlines suggest. For buyers, the speech mostly confirms what was already in place. Checked 29 October 2026; measures from the 26 October 2026 speech apply only once enacted.

In short: On stamp duty rates, property tax and rent law, the speech did not announce a change. No new inheritance-tax measure was announced. Existing property succession duties and exemptions continue to apply. The first-time buyer exemption on the first €200,000 is already permanent. The government said incentive schemes running in 2026 will be extended for another year, but no legal notice had been published as of 29 October 2026. Qualifying parents also get wider tax bands once enacted.

For the purchase steps, read how the konvenju, the notary and the final deed work. For first-time buyer numbers, see our 2026 first-time buyer guide.

Did Budget 2027 change stamp duty?

No. On duty on property transfers, the speech did not announce a change (EY Budget 2027 highlights, p. 11; Pedament). The standard rate is 5% unless a relief applies. Under Legal Notice 305 of 2025, a first-time buyer pays no duty on the first €200,000, and that exemption no longer has an end date.

What happens to the 31 December deadline on the UCA and vacant property schemes?

Three separate schemes carry a written end date of 31 December 2026. First, under S.L. 123.203, eligible purchases of a property in an Urban Conservation Area (UCA), a property built more than 20 years ago and vacant for more than 7 years, or a new property built to approved traditional guidelines receive duty and seller-tax relief on the first €750,000. Second, under the Grant for First-Time Buyers (First Home guide), a first-time buyer of a qualifying UCA, vacant or approved-guideline property can apply through servizz.gov for a purchase grant of up to €15,000 in Malta, or up to €40,000 in Gozo where the deed is after 1 January 2024; the scheme runs until 31 December 2026. Third, under the Grant on the Restoration and Finishing of Privately Owned Residential Properties, eligible applicants can claim a VAT refund of up to €54,000 on restoration and finishing costs.

The speech did not name these three schemes one by one. EY and Deloitte report a general extension of 2026 incentive schemes for a further year, and EY lists property acquisition and renovation schemes among them. However, the written end date is 31 December 2026, and no legal notice had amended S.L. 123.203 or extended the grant schemes as of 29 October 2026.

Budget 2027 for buyers at a glance

Measure	What the budget says	What it means for a buyer
Stamp duty rates	The speech did not announce a change	5% unless a relief applies
First-time buyer duty exemption	Permanent under LN 305 of 2025	No duty on the first €200,000
UCA and vacant property duty and seller-tax relief (S.L. 123.203)	General extension of 2026 schemes reported; legal notice not published as of 29 October 2026	Relief on the first €750,000; written end date is 31 December 2026 until amended by legal notice
Grant for First-Time Buyers (purchase grant)	General extension of 2026 schemes reported; notice not published	Up to €15,000 in Malta or €40,000 in Gozo (deed after 1 Jan 2024) on qualifying UCA, vacant or guideline properties via servizz.gov; runs until 31 December 2026
Grant on the Restoration and Finishing of Privately Owned Residential Properties	General extension of 2026 schemes reported; notice not published	Separate restoration support: VAT refund of up to €54,000 on eligible works
Inheritance or succession duty	No new inheritance-tax measure was announced	Existing property succession duties and exemptions continue to apply
Family tax bands	Zero-rate bands up to €30,000 once enacted	Up to €2,025 more take-home pay a year for qualifying parents
Airspace transfers	Taxed on full value, prospective after consultation	Check the price basis on airspace deals once enacted
Short-let eco-contribution	€10 a night per adult from 1 January 2027, capped at €80	Recheck short-let investment numbers

Do the new family tax bands help you buy?

They help qualifying parents carry a mortgage once enacted. In 2027 the zero-rate band for a married couple with two or more qualifying children rises from €22,500 to €30,000 (EY, p. 4). Above €60,000 of income, that is €2,025 more take-home pay a year. Alongside the €6.41 weekly cost-of-living adjustment and the Super Bonus of up to €1,000 in early 2027 for eligible workers, saving the 10% deposit gets a little easier.

The child bands depend on nationality and residence conditions. Under the 2026 rules, a Maltese or EU couple qualifies, while a non-EU couple needs long-term residence and a child born and living in Malta.

What changes for foreign buyers?

On property acquisition rules for foreign buyers, the speech did not announce a change. Separately, the Individual Tax Programme under Legal Notice 195 of 2026 starts on 1 January 2027, with a qualifying property test of €700,000 to buy or €14,000 a year to rent and a €35,000 minimum annual tax for the main statuses. Only a complete application received by 31 December 2026 keeps the €15,000 minimum until 31 December 2031.

From January 2027, once enacted, free buses and new free childcare are limited to Maltese and EU nationals and long-term residents, so for non-EU buyers commute and location could matter more, whether you are looking at property in Sliema, property in St Julian's or central towns such as Birkirkara and Mosta. Within the QLZH group, Zet Finance advises on this. Its real estate advisory page covers property purchases linked to a move.

What changes for off-plan buyers?

A VAT reverse charge will apply in construction, and airspace transfers will be taxed on full value after consultation (EY, pp. 5, 7). A private buyer still pays no VAT on a home, so the checks that matter are the usual ones in our off-plan buying guide. In Gozo, when browsing property in Gozo, the purchase grant of up to €40,000 under the Grant for First-Time Buyers runs until 31 December 2026 while any extension notice is pending, and higher ferry fares apply only to non-residents. See our Gozo buying guide.

Questions buyers ask

Should I wait for the legal notice before signing on a UCA property?

The written end date under S.L. 123.203 is 31 December 2026, and no legal notice amending it had been published as of 29 October 2026. Ask your notary how the relief position and the written end date apply to your konvenju and deed timeline.

Did Budget 2027 raise stamp duty for foreign buyers?

No. On stamp duty rates and AIP rules, the speech did not announce a change.

Is the first-time buyer exemption ending?

No. It is permanent under Legal Notice 305 of 2025.

Did Malta introduce an inheritance tax?

No new inheritance-tax measure was announced. Existing property succession duties and exemptions continue to apply.

Next step

If you were waiting for the budget, the wait is over. Browse property in Malta, apartments in Malta, townhouses or property in St Julian's, or tell us your budget on our first-time buyer page and we will tell you which reliefs your purchase can use.