Malta’s government is reducing the stamp duty buyers and withholding tax for sellers in the property market to help boost the sector following a COVID-19 shutdown.

Prime Minister Robert Abela revealed the measure during the announcement of a stimulus package to aid Malta’s recovery from the pandemic and global recession.

The measure applies to anyone still under a promise of sale agreement or konvenju and will cover the first €400,000. The scheme will be available up until March 2021.

For buyers, the stamp duty will drop from 5% to 1.5%, while the withholding tax for sellers it will drop from 8% to 5%.

Speaking during a press conference, Abela said that the scheme could cost up to  €32 million.

Malta’s first-time buyers’ scheme will be extended to people who also bought a garage.

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