BCMS Limited
243/1 Constitution Street
Mosta, MST 9052

T: +356 2142-1111
M: +356 9947-5566
F: +356 2141-7118
E: rkg@bcmsltd.com

Tax on property transfers (as from 1 Jan 2015)

With effect from 1 Jan 2015 the tax on capital gains made when selling immovable property situated in Malta will be replaced (save for a few exceptions) with a transaction tax on property transfers.

If you are not sure of how this will work or would like to familiarize yourself with how it will work we are here reproducing a flow chart issued by the Inland Revenue to help you understand how it will work.

Gains made on inherited immovable property remain subject to a Final Witholding Tax of 12% on the difference between the transfer value and the cost of acquisition (denunzja). Where the property was inherited before 25 Nov 1992  final tax of 7% on the consideration is levied.

The first flowchart refers to transfers of any property that do not form part of a project or SDA (special designated area).

The second relates to properties forming part of a project or situated within an SDA (existing before 1 Jan 2015).

Feel free to contact us if this is not clear or does not answer your query.

I – Applicable to stand alone properties (outside SDA)



II- Applicable to projects within an SDA or part of a project



(Checklist issued by the Director General of Inland Revenue)