Apart from being a significant and emotional transaction for most people, a property transaction carries fiscal implications which need to be considered carefully.
Taxes on the Sale of Malta Property
Under Maltese law, the transfer of immovable property in Malta or any rights relating to such property, attracts property transfers tax. In certain defined cases one can opt for the income tax on capital gains regime, which potentially could be more favourable than the property transfers tax regime. In certain cases it is also possible for the income arising from the transfer of immovable property in Malta to be exempt from tax or deferred.
Taxes on the Purchase of Malta Property
As relates to the purchase of property situated in Malta, the transaction attracts duty on documents and transfers. In certain cases where property is acquired for primary residence purposes without the need of an AIP permit, the default rate of duty can be decreased. In other cases, it is also possible to be completely exempt.
Tax Advice
Throughout its years of practise, Chetcuti Cauchi has assisted a significant number of clients in buying or selling property in Malta and in advising them on the applicable fiscal regimes. We have a team of tax specialists who work closely with our property specialists and who will be able to provide assistance in tax planning. Through our network of collaborators we are also able to provide tax advice related to fiscal implications in other jurisdictions.
