Buying a Property - how much stamp duty to pay?

hyperlogic18 wrote:

Hi there

I've been living in Malta for the last 18 months and am about to buy a property. I'm not sure though exactly how much Stamp Duty I'm going to need to pay. I'm from the UK but have a Maltese ID card ( for what that's worth these days!)

Anyway, in the budget last month it was stated that if you are buying a property, as a first time buyer, you would pay 3.5% of the house value on the first €150k then 5% on the rest. Does anyone know if this applies to me or will I be treated differently as a non- Maltese and pay 5% on the whole value?

Any help or recent experience of buying property as a non-Maltese would be greatly appreciated.

Thanks!

All foreign nationals pay 5% on the value declared on the final deed with the exception of EU citizens taking up residence in Malta, having sold their overseas properties and having the Malta property as their sole residence. In this case 3.5% shall be paid on the first €69,886 as stamp duty.

Do you have a residency or just an ID card?
You should apply for residency if you don't have it, before you start to buy. It will save you a lot of money!

Terry

I just have the ID card so far. What confuses me is that I'm sure I read that statement on the Maltese government site about a year ago before the new residence card was being rolled out which makes me think the ID card might be ok. The notary BOV spoke to whilst I was in branch said that under EU law I would be treated the same as a maltese (ie pay the 3.5%) but I can't find a definitive anywhere to back that up.

Thanks for your reply tearnet. Would be interested to hear from anyone who's just been through the process

Cheers

You should apply now for the new E ID card which gives you residency officially. The old ID cards (which required a separate residency card) have been extended but only until October (I think). 

Terry

Do you work and pay tax in Malta? if so you may get away with being classed as a resident anyway.

Terry

Yeah im going to get that done ASAP for sure but fear the months I'm going to have to wait to get the process done by the sounds of it.

But yeah I have a permanent job and pay normal tax over here so hope that's all I need

Thanks

You don't need the actual card, just start the process ie get an  appointment or apply by post.

Terry

Agree with Terry get your residency permit application in sharpish - by post or personal visit....it doesnt always follow that just because you have the residency permit that you will be treated equally nor fairly as say with a maltese person.....so be warned and be prepared to fight for what you believe to be right.. it does however give you a fighting chance rather than no chance at all as any reason not to give you the right rate in order to charge you more is a distinct possibility here. One day this will change just not sure when.