First Time Buyer
Buying your first home need not be a stressful experience
At Sara Grech, we are committed to helping you find your dream home.
Personalised guidance for first-time buyers
Buying your first home in Malta can feel overwhelming, our dedicated first-home specialists make it simple. We’ll help you set a realistic budget, explain the latest 2026 Malta Budget incentives for first-time buyers, and map out the full journey from shortlisting properties to making an offer. Expect clear advice on areas and amenities, comparables, offer strategy, and what to prepare for the promise of sale (konvenju) and notary stage.
Speak to a first-home specialist (your schedule, your choice)
Prefer a quick call, an email exchange, or a video meeting? Choose what suits you and we’ll match you with a Sara Grech agent experienced in first-time buyer purchases. In your consultation we’ll review eligibility for government schemes, discuss mortgage readiness, and curate a shortlist of properties that fit your needs, so you move from browsing to viewing with confidence.
End-to-end support, from search to keys
With Sara Grech you get more than listings. We coordinate viewings, provide neighbourhood insights, liaise with banks and notaries, guide negotiations, and keep timelines on track through to handover. We’ll also highlight homes that may qualify for first-time buyer incentives and help you understand total purchase costs (stamp duty, notarial fees, and any applicable exemptions) to avoid surprises and secure the right home at the right price.
When buying your first home
Buying your first home in Malta has just become even more rewarding. The 2026 Malta Budget introduced several new measures and improvements designed to make home ownership more accessible for first-time buyers, whether you’re purchasing a small apartment, townhouse, or maisonette.
One of the biggest updates is that the First-Time Buyers Scheme is now permanent, giving buyers long-term confidence that government incentives will remain in place for years to come. The definition of a first-time buyer has also been widened, you can now still qualify even if you previously purchased a non-residential property, such as a garage or small commercial unit, as long as you’ve never owned a residence.
The property value cap for assistance has been raised to €250,000, allowing more homes to fall within the eligible price range. First-time buyers also continue to benefit from the annual €1,000 grant for 10 years, helping reduce ongoing costs during the early years of property ownership.
In addition, the equity-sharing scheme, where the Housing Authority helps co-fund part of the property purchase — now starts from age 25, with increased value limits for separated individuals (up to €350,000). These updates make it easier for young professionals and families to step onto the property ladder sooner.
If you’re planning to buy your first home in Malta, now is an excellent time to take advantage of these government incentives. The expert team at Sara Grech Real Estate can guide you through eligible properties, help you understand each scheme, and ensure you make the most of the new benefits introduced in the 2026 Budget.
€10,000 Grant for Real Estate First Time Buyers in Malta
First-time buyers will be eligible for a one-time €10,000 grant spread out over 10 years. The grant will go towards the payment of the buyers’ home loans. The maximum allowed value of the property is €500,000.
Grant for Purchasing in Village Cores
First-time buyers purchasing a home in an urban conservation area or a property built for at least 20 years, and vacant for at least the last seven years, are eligible for a further grant of €15,000 for Malta properties and €40,000 for Gozo properties.
VAT Return on Renovations and Restoration Works
First-time buyers can apply for reimbursement of certain expenses, up to a refund of €54,000, related to the restoration and finishing of their home. This applies to properties located within Urban Conservation Areas (UCAs), those built for more than 20 years and vacant for more than seven years, as well as new properties developed in conformity with specific criteria reflecting a ‘traditional’ element. Eligible costs include restoration and finishing works, such as materials, labor, equipment hire, professional fees, planning fees, and other government charges.
Stamp Duty Relief on the first €200,000
As a first-time buyer, you won’t owe any stamp duty on the first €200,000 of the property price, saving you up to €10,000 (based on the standard rate of 5%). If you choose a property valued above €200,000, you’ll only pay a 5% stamp duty on the amount exceeding €200,000.
€10,000 Home Loan Grant
First-time buyers are eligible for a one-time €10,000 government grant, distributed over 10 years (€1,000 per year). This grant will contribute towards your home loan, with applications required to be submitted by March of the year following the signing of the deed. The property must be used and occupied exclusively by the applicants as their ordinary residence. If the property is purchased by a couple and only one buyer is a first-time buyer, the grant amount will be €5,000.
Waiving of stamp duty for first-time buyers
Buyers purchasing their first property as their primary residence do not have to pay stamp duty on the first €200,000. This is equivalent to a maximum saving of €7,000.
Grants for older-type properties
First-time buyers who acquire a 20 year+ vacant property, a property situated in UCA or a newly built house using traditional Maltese architecture, will be entitled to receive a grant of €15,000 if the property is in Malta. If the property is in Gozo, they will receive €40,000 – up from €30,000.
Stamp Duty Exemption for Urban Conservation Areas (UCAs)
New homeowners may be eligible for a stamp duty exemption in Malta for the first €750,000 if the property meets any of the following criteria: (i) It is situated within a designated Urban Conservation Area (UCA), (ii) It is over 20 years old and has been unoccupied for at least seven years, or (iii) It is a newly constructed property designed in a traditional Maltese style and architecture.
Guidelines on Income Tax and Stamp Duty Benefits on Certain Property Transfers - Budget 2022
The Minister for Finance and Employment has prescribed rules that grant income tax and stamp duty exemptions on certain property transfers. The rules have been published in Legal Notice 461 of 2021. The new tax benefits apply to transfers that are made on or after 12 October 2021 but not later than 31 December 2024. They do not apply to transfers of property to persons who require an AIP permit. (In the case of transfers of property situated within special designated areas, and which are therefore not subject to AIP permit requirements, the exemptions are available only as long as the purchaser is not a person who would require an AIP permit had the property been situated elsewhere.) The benefits are granted under the following three schemes:
Old, vacant property
The first scheme applies to buildings that were constructed at least 20 years before the transfer, as confirmed by an architect’s report, and that have been vacant for at least 7 years and still vacant at the time of the transfer, as confirmed by a certificate from ARMS. The Commissioner may require further or alternative evidence. The benefit under this scheme is an exemption from income tax and an exemption from stamp duty on the first €750,000. When the transfer value is higher than €750,000, the excess is taxed at the normal rates. (Where the Eighth Schedule is applicable, it would qualify as an architect’s report.)
Property situated within an urban conservation area
The second scheme applies to property situated within an urban conservation area, as confirmed by a certificate from the Planning Authority and by any further evidence that the Commissioner may request. Again, the benefit is an exemption from income tax and from stamp duty on the first €750,000. When the transfer value is higher than €750,000, the excess is taxed at the normal rates.
Property developed in accordance with approved criteria
The third scheme applies to transfers of property that is subsequently developed in accordance with approved criteria. The criteria were described in broad terms in the budget speech as requiring the development to include Maltese traditional features. A board will be established to lay down these criteria and to monitor and approve property developments in those cases where the owner applies for the duty benefit under this scheme. Under this scheme, the benefit consists of an exemption from stamp duty on the first €750,000. The exemption is granted by way of a refund: income tax and stamp duty must be paid on the contract at the normal rates, but the purchaser can then apply for a refund of the stamp duty, which will be given once the property is developed, and the development is approved by the board.
Loss of benefits
The benefits are subject to the condition that the property will not be demolished and that it is not divided into more transferable units than the units comprising it at the time that it was acquired or, in the case of the third scheme, at the time that the development was approved. Breach of this condition will result in a loss of the benefit and the amount of the benefit (the total amount of exempt income tax and stamp duty under the first two schemes and the amount of the exempt stamp duty under the third scheme) will have to be paid to the Commissioner.
These schemes are particularly beneficial for a Real Estate First Time Buyer in Malta, offering significant financial incentives. Understanding these benefits can be crucial for any Real Estate First Time Buyer in Malta looking to make a sound investment.
Featured Localities
The most popular locations for the Real Estate First Time Buyer in Malta are either within UCA (Urban Conservation Areas) or properties listed in the following locations which are well priced:
UCA: Qrendi, B’kara, Zebbug, Siggiewi, Balzan, Attard, Lija
First time buyer preferred locations: Qawra, St Paul’s Bay, M’Scala, B’Bugia, Burmarrad, Iklin, Attard, Lija, Balzan
We have properties in all locations, so it’s best to talk to an agent who will be able to give you insight on what is available in your preferred location. Whether you are a Real Estate First Time Buyer in Malta or looking to invest, our agents can help you find the perfect property.
Things to look out for
It is highly recommended to buy your first home as early as you can so that as you enter your retirement the equity in your home will be important to your financial health. This does not mean that the first home you buy will be your last, however, it will be a stepping-stone into the property market.
Do not look for that ideal home that you see yourself in for 10-20 years but a starter home for the first three to five years. When you sell your first home and would have lived in it for over three years you are free from tax on the sale proceeds.
Currently, Malta is experiencing a buyers’ market which means that prices are stable and there are plenty of properties to choose from. This is certainly your cue to grab yourself a good property. Buying property has long proven itself a strong investment.