Malta — Tax: Capital Gains

Key facts

• Since 1 January 2015 the general rate is a single 8% final withholding tax on the value of the property transferred.
• For property not part of a project, the rate is 5% of the transfer value if the property is transferred within five years of acquisition.
• A 12% rate remains for property acquired before 1 January 2004 where a promise of sale was notified to the CfR before 17 November 2014.
• Property acquired before 1 January 2004 can also fall under a 10% rate in some cases; projects and special designated areas follow separate rules.
• The seller pays the capital transfer taxes; stamp duty is paid by the buyer.

Steps

1. Understand Your Situation — Identify if you are a resident or non-resident in Malta, and gather all relevant information about your assets and income.
2. Consult a Professional — It is recommended to consult a tax professional or accountant familiar with Maltese tax laws to ensure compliance.

Common mistakes

• Assuming the tax is levied on profit: the final withholding tax is charged on the transfer value.