What is the Second-Time Buyers Scheme 2026?
The second-time buyers scheme is not an exemption. It is a refund, and the difference matters on the day of the final deed, because you pay the duty first and claim it back afterwards.
That single detail catches people out more often than any of the eligibility rules. So does the clock attached to it. Here is how the scheme works, what it is worth, and the sequencing that decides whether you qualify at all.
What the second-time buyers scheme actually gives you
If you already own a home and you are replacing it, the second-time buyer scheme refunds the duty paid on the first €86,000 of the value of your new property.
Duty on documents and transfers, what most people call stamp duty, is normally charged at 5% on residential property. So the relief is worth up to €4,300, refunded after the transfer rather than deducted at the deed.
It is a modest sum against a Maltese property price, and it is not the reason to move. It is money you are entitled to, though, and it is regularly left unclaimed by people who assumed it applied only to first-time buyers.
The twelve-month rule that disqualifies most people
The condition that decides eligibility is timing.
You must sell your previous sole residence and acquire the replacement within twelve months. That window runs in both directions, so selling first and buying fourteen months later fails, and so does buying first and taking too long to sell.
In a market where the right property can take a year to find, this is the rule that quietly excludes people who would otherwise qualify. If you are planning a move and think the scheme applies to you, work backwards from that twelve-month window before you accept an offer on your current home.
A bridging arrangement, or a longer period between promise of sale and final deed on the purchase, can sometimes keep the sequence inside the window. That is a conversation for your notary and your bank at the start, not after you have signed.
The other conditions
Alongside the timing, the scheme requires that:
- The new property becomes your sole residence. A second home, a holiday property or a buy-to-let does not qualify.
- You do not own other residential property at the time of the purchase. Inherited shares in a family property are worth checking here, because part-ownership counts.
- Both the property you sold and the one you are buying qualify for the residential rate. Transfers that were gifts or exempt on the way in are treated differently.
None of this is exotic, but each condition has edge cases, and edge cases in duty are expensive to get wrong. Your notary confirms eligibility and files the claim. Ask the question at the promise of sale stage.
What changed for 2026
The relief has been extended, and it sits alongside a set of measures aimed at people moving up the ladder rather than onto it.
The first-time buyer deposit scheme, which helps with the 10% deposit on a home loan, now applies to properties valued up to €250,000, raised from €225,000. The equity sharing scheme, where the Housing Authority takes a 50% stake alongside the buyer, has been extended to people aged 25 to 30 who cannot bridge the financing gap on their own. Inherited property used as a primary residence is taxed at 3.5% on the first €400,000.
Figures and deadlines in this area are revised each budget, and extensions are often confirmed only for a further period at a time. Treat the numbers here as correct at the time of writing and confirm the current position with your notary or with the Malta Tax and Customs Administration before you rely on them. That is not a disclaimer for its own sake. Duty rules in Malta change by legal notice more often than most buyers expect.
Where the scheme sits in the wider cost of moving
The €4,300 is real, and it is also small against everything else on the day.
Budget for the balance of the duty above the first €86,000, notarial fees, searches, architect or surveyor fees on the property you are buying, agency fees on the property you are selling, and the cost of moving itself. If you are borrowing, add bank sanction and valuation fees.
Set against that list, the refund covers a portion of your notary and searches. Useful, not transformative. The larger financial decisions in a second purchase are the price you accept on your current home and the rate you fix on the new loan, and both dwarf the scheme.
A practical order of operations
- Confirm eligibility with your notary before you list your current home.
- Establish your borrowing capacity, including how the bank treats the property you still own.
- Agree the sequencing. Selling subject to finding, or a longer deed period, both buy you time inside the twelve months.
- Keep the paperwork from the sale of your previous residence. The claim depends on it.
- File the claim through your notary after the deed. It is not automatic.
Our guides for people at the earlier stage, including the first-time buyers guide for Malta and our FAQs for buying and selling property, cover the ground below this one and are worth reading alongside.
If you are weighing up a move this year and want to know whether the timing works before you commit to anything, ask an agent and we will map the sequence against your own situation. Getting the order right is worth considerably more than the refund.
Frequently asked questions
How much is the second-time buyers scheme worth?
The scheme refunds the duty paid on the first 86,000 euro of the value of your replacement property. With duty on residential property normally charged at 5%, that is up to 4,300 euro, refunded after the transfer rather than deducted on the day of the deed.
Who qualifies as a second-time buyer in Malta?
Broadly, someone replacing their sole residence. You must sell the previous residence and acquire the new one within twelve months, the new property must become your sole residence, and you must not own other residential property at the time of purchase. Your notary confirms eligibility against your specific circumstances.
Is the relief automatic?
No. You pay the duty at the deed and the refund is claimed afterwards through your notary, supported by the paperwork from the sale of your previous residence. Keep those documents, and raise the claim at the promise of sale stage rather than after completion.
What if I cannot sell within twelve months?
The relief is lost. Because the window runs in both directions, sequencing matters more than anything else here. A longer period between promise of sale and final deed, or selling subject to finding, can sometimes keep the transaction inside the window. Discuss it with your notary and your bank before you accept an offer.
What else changed for buyers in Budget 2026?
The first-time buyer deposit scheme now applies to properties valued up to 250,000 euro, raised from 225,000 euro. The equity sharing scheme, where the Housing Authority takes a 50% stake, was extended to buyers aged 25 to 30. Inherited property used as a primary residence is taxed at 3.5% on the first 400,000 euro. Confirm current figures before relying on them.