Malta Budget 2025 – Key Points

✔️ 1. First-Time Buyers Scheme (SL 364.12)

Exemption on the first €200,000 when buying first residential property.

• The First-Time Buyers duty reduction becomes permanent from 28 October 2025 ( it was previously being extended every year)
• Eligibility will exclude anyone who has previously acquired any residential property inter vivos, including airspace and fabricable land.

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✔️ 2. Second-Time Buyers Scheme – SL 364.17

Where an individual transfers his residential immovable property (replaced property) and acquires another residential immovable property (replacement property) within 12 months from the date of transfer of the replaced property, the duty paid on the first €86,000 of the value of the replacement property shall be refunded.

• Duty Reductions extended throughout 2026.

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✔️ 3. UCA (Urban Conservation Area) Scheme – SL 364.19

No duty shall be payable on the first €750,000 of the transfer value if the property is in an Urban Conservation Area

• Duty reductions on property within UCAs are extended throughout 2026.

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✔️ 4. Vacant Property Scheme – SL 364.19

• Duty incentives on vacant properties are extended throughout 2026.

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✔️ 5. Property Developed with Traditional Features Scheme – SL 364.19

• Incentives on properties refurbished with traditional architectural features are extended throughout 2026.

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✔️ 6. Donation of Business Property and Shares – SL 364.15

• Reduced duty on the transfer of business property and shares is extended throughout 2026.

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✔️ 7. Inherited Property Used as Sole Residence

• Duty on inherited property that becomes the heir’s sole residence will be calculated at:
  • 3.5% on the first €400,000
    (previously €200,000)
• Applies to deaths occurring from 28 October 2025.