When selling a property, it’s advisable to seek prior advice on the applicable tax rates, and pitfalls to avoid before signing a promise of sale. We also represent sellers who are not physically present in Malta.
Selling a property may also involve a number of legal issues that require professional advice.
Our Service & Commitment at James Grech & Associates – Notaries Public:
Since the choice of notary entrusted with publishing the deed of sale usually lies with the buyer/s, we can assist the seller/s by:
Contact us for more information or to make an appointment in relation to the selling of immovable property.
It depends on whether you have been living in the property for 3 years or more. If yes, then no tax is due. If not, property transfer tax is due at different rates depending on how long ago you acquired the property and under what title.
This depends on whether the inheritance took place before 25th November 1992 or after such date. If it took place before this date, then tax is due at the rate of 7% of the selling price. If the death took place after this date, then one has to see what value was attributed to the property in the causa mortis declaration of the deceased by virtue of which the property came to be registered under your name. One must then determine the difference between such value at the time of the inheritance and the selling price, and pay tax of 12% on the difference.
If you had purchased the property before the 1st January 2004, the final tax due will be at the rate of 10% of the final selling price.
If you had purchased the property in the last five years, the final tax due will be at the rate of 5% of the selling price.
If you had purchased the property more than five years ago but not before the 1st January 2004, the final tax due will be at the rate of 8%.
Yes, the notary publishing the deed of sale must notify the Director General of Inland Revenue about the proposed sale and the Director General of Inland Revenue will issue a permit for this purpose. Without this permit, the deed of sale cannot be published. This permit will be issued as long as the seller has no pending dues with the Inland Revenue Department.