Imposition of Duty:


The duty on documents and transfers Act provides for the imposition of a tax commonly referred to as stamp duty on certain legal documents and transfers.

The basis of the tax is very often the document and in this regard, the targeted documents are typically those that one cannot avoid drawing up, such as official or statutory documents and documents which are normally preserved as evidence of some right. However, the law now also applies to what are deemed to constitute transfers in certain circumstances.

Under the "DDTA", duty is chargeable on documents and transfers/transmissions concerning:

  • Documents relating to the transfer of immovable property.
  • Documents relating to the transfer of marketable securities.
  • Documents relating to transfer of interests in a partnership.
  • Documents required to be created on a transmission causa mortis.
  • Contracts of exchange where the asset being exchanged involves immovable property, marketable securities and interests in a partnership.
  • Policies of insurance.


Rates of duty:


Duty on transfers of immovable property: The duty chargeable on transfers of immovable property is € 5 for every
€ 100 or part thereof of all the transfer value that is the amount or value of the consideration or to the value of the property that is transferred whichever is the highest.


Duty on transfers of marketable securities: The general rate of duty chargeable on the transfer of marketable securities and on
transmissions cause mortis of shares in a company is € 2 for every € 100 or part thereof. This rate increase to € 5 per € 100 or part thereof where the company that issued the marketable security in question, owns directly or indirectly, immovable property situated in Malta and the value of such immovable property exceeds a certain threshold.

Special rates of duty: Persons who acquire immovable property for the purposes of establishing or constructing their sole ordinary residence are entitled to benefit from a reduction in the rate of dutiable value and a reduced rate of duty. Duty is charged at the rate of 3.5% instead of 5% on the first € 150,000.00 of the consideration paid for the acquisition.



Exemptions from Duty: 


First time buyers: A person who acquires his/her FIRST sole ordinary residence and does not own any other immovable property is exempt from stamp duty on the first € 175,000.00 value of property acquired. 


Donation by a related person: A reduction in the dutiable value and a reduced rate of duty is also applicable where an individual donates immovable property to certain relatives for the purpose of the recipient to establish his or her sole ordinary residence. In such cases the value of immovable property for duty purposes is take to be 80% of the market value of the property at the time of the donation.


Furthermore where the donation is made by an individual to his descendants and the transfer is the first transfer that is being effected for this purpose apart from the reduction in the value to 80% and the reduced rate of duty of 3.5%, no duty is chargeable on the first                 € 200,000.00.  









Duty on documents and transfers