Property Tax and Stamp Duty Measures in Malta Budget 2026

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Strengthening Property Affordability and Succession Planning in Malta

The Malta Budget 2026 introduces targeted property tax and stamp duty measures to support first-time buyers and individuals inheriting residential property. The Deposit Assistance Scheme now applies to properties valued up to €250,000, while the €1,000 annual grant for first-time buyers is retained and made permanent. Buyers who previously acquired non-residential property will still qualify for first-time buyer status when purchasing their first home.

Stamp duty relief for inherited residences has been expanded, with the reduced 3.5% rate now applying to the first €400,000 of the property's value. These measures aim to improve housing affordability and provide long-term certainty for property owners and beneficiaries.

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what's inside

Strengthening Property Affordability and Succession Planning in Malta

Key Legal Points

Deposit Assistance Scheme extended to properties valued up to €250,000.

€1,000 annual grant for first-time buyers retained and made permanent.

First-time buyer status preserved for those who previously bought non-residential property.

Stamp duty relief increased to cover €400,000 of inherited residential property value.

Support for First-Time Buyers in the Malta Budget 2026

The Malta Budget 2026 expands support for first-time property buyers in several ways:

- The Deposit Assistance Scheme now applies to properties valued up to €250,000.

- The €1,000 annual grant for first-time buyers, payable over 10 years, is maintained.

- First-time buyer incentives are to become permanent, providing long-term certainty.

- Those who previously purchased non-residential property (e.g., garages or fields) retain first-time buyer status for their first home purchase.

Stamp Duty Relief for Inherited Residences

The Malta Budget 2026 confirms the continuation of inheritance tax relief and increasing stamp duty rates for individuals inheriting their primary residence. Beneficiaries now pay a reduced 3.5% rate on the first €400,000 of the inherited property's value, up from the previous €200,000 threshold. Existing tax deductions on mortgage interest and other property-related expenses remain available, subject to eligibility.