What happened?

Malta′s buoyant house price rises over the last five years have been supported by a number of factors (according to the CBM′s 2018 annual report - Malta′s fast growing economy, which enjoyed an average growth of 9.6% in 2014 and 2015, followed by 6.3% from 2016 to 2018. Plus:

• low-interest rate environment;
• buoyant disposable income; and
• the rising number of foreign workers in the country.

Prices were also boosted by government measures including the exemption of first-time property buyers from a 3.5% stamp duty on the first €150,000 of a new property′s value. In 2018, another scheme was introduced, making second-time buyers eligible for a stamp duty refund of up to €3,000 if they plan to replace their current residential homes. Second-time buyers are not eligible if they own any other property, or are upgrading to a luxury villa. Homeowners with disabilities can avail a higher stamp duty refund of up to €5,000.