Malta Budget 2027: what changes for tenants, landlords and buyers

The main points for anyone renting, letting or buying in Malta:

• All existing property schemes, for buying and for renovating homes, are to be renewed for 2027.
• No new stamp duty or transfer tax relief was announced.
• First-time buyers keep the permanent exemption on the first €200,000.
• Short lets pay a higher eco-contribution from 1 January 2027: €10 a night, capped at €80 per person.
• Sales of airspace will face stricter disclosure and valuation checks.
• Non-EU workers pay more for work permits, and some free services are limited to EU citizens and long-term residents.
• Electricity, gas and fuel prices stay frozen, with about €400 million of subsidies.

No new measure on rents or leases was announced, so the Private Residential Leases Act rules stay as they are: registered contracts, a deposit of usually one month, and long lets of at least 12 months.

The budget still affects your monthly costs. Energy prices remain frozen, which keeps water and electricity bills stable. The cost of living adjustment is €6.41 a week, and a tax-free €1,000 “super bonus” is planned for early 2027 for workers who earned at least €12,000 in 2025, with a smaller amount for lower earners. The exact eligibility rules are still to be published.

Many of our tenants will feel this part of the budget most. The fee for a new work permit application goes from €600 to €800, and a new €400 yearly contribution applies to new and renewed permits, except for under 18s.

From January 2027, free public transport is limited to Maltese citizens, EU citizens living in Malta and long-term residents. Free childcare follows the same rule for new applicants, while families already using it keep it. If you are a third-country national, plan these costs in your monthly budget alongside the rent.

The first-time buyer scheme is permanent since Legal Notice 305 of 2025: no stamp duty on the first €200,000 of a home you will live in. The €10,000 grant, paid as €1,000 a year over 10 years towards your home loan, also continues. People who previously owned only non-residential property can now qualify.

Several incentives were due to end on 31 December 2026, including the €15,000 grant (€40,000 in Gozo) for first-time buyers of older or traditional properties and the VAT refund of up to €54,000 on the first €300,000 of restoration works. The Minister said all existing schemes will be renewed for 2027, but the speech did not name them one by one. Wait for the legal notices before you count on a specific scheme, and confirm with your notary.

The reduced 3.5% duty rate on an inherited home now covers the first €400,000 of its value, up from €200,000. This came in with Budget 2026 and continues in 2027.

From 1 January 2027 the eco-contribution paid by tourists rises to €10 a night in short let apartments, capped at €80 per person, and to €8 a night in hotels and other collective accommodation, capped at €64. If you let to tourists, update your prices and booking terms.

No change to the tax on rental income was announced. Long lets to residents are not affected by the eco-contribution.

The government wants fuller disclosure of the total price when airspace or land is sold together with a separate works contract, with stronger valuation checks, so that tax is paid on the real value of the deal. It will apply to future transactions, after a consultation.

For renters, the budget changes little on the housing side, and rents will keep following supply and demand. For non-EU tenants, the higher permit fees and the end of some free services mean you should compare flats on the total monthly cost: rent, bills and transport. For buyers, the renewal of the existing schemes is good news, as long as the legal notices confirm it. Ask us if you want help finding a flat that fits your budget.