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.
Personal tips and guidance
We’ve matched you with an experienced Superhost to answer all of your questions, whenever works best for you.
Arrange your meeting via Calendly
We use a business communication platform to give our customers the option of booking an appointment with the agent of their choice. If you wish to get in touch with an agent you can view the calendar and click on a slot that suits you best. You will then receive a confirmation email about your booking.
Arrange a meeting via email or call
It’s up to you the way you choose to communicate with our agents. You have the choice to either call, email directly, or book a meeting straightforwardly with the agent through Calendly.
When buying your first home
Buying your first home is one of the biggest milestones. It’s super exciting but with this excitement comes commitment and there’s a good chance that buying a property could be the largest purchase you make. So, as you start to search and prepare, here are a few tips you might wish to consider.
Visit the banks and find the best option for you and your preferred lender. Doing your homework and knowing what is available for you will best determine what type of property you will search to buy.
Work out the fees you will incur for the purchase such as bank loan charges, architect fees, permit costs if any, Water & electricity applications, Notary fees, and Stamp duty.
Look at the first-time buyer incentives being offered. Currently, first-time buyers are exempt from paying stamp duty on the first € 200,000. If a first-time buyer purchases a property which is built over 20 years ago and has been vacant for more than seven years or is newly built in the typical Maltese style and architecture, a grant of € 15,000 (in the case of Gozo € 30,000) to be used towards the restoration.
There is also the Property Acquisition Grant. A first-time buyer who acquires their first residential property after 1st January 2022 will receive a grant for €10,000 which will be given over a period of 10 years. The grant will be given once a year through payments of €1,000 each and go towards the buyers’ home loan. This grant covers property purchases till end 2023. The maximum allowed value of the property is €500,000.
You are now ready to start your property search. We look forward to helping you achieve the best possible property.
€10,000 Grant for First-Time Buyers
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.
Featured Localities
The most popular locations for the first time buyers 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 its best to talk to an agent who will be able to give you insight on what is available in your preferred location.
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.