Malta’s 2027 Budget, presented on 26th October 2026, brings continuity rather than change for the property market, according to Christie’s International Real Estate Malta. Existing schemes are renewed, a clearer framework for taxing development rights is on the way, and a revised eco-contribution reaches the short-let market from January. As in recent years, there are no measures aimed specifically at luxury property.
The economic backdrop remains supportive. Government forecasts real GDP growth of 3.8% in 2027, easing from 4.1% this year, with inflation at 2.7% and unemployment at 3.2%. These are forecasts, not outcomes, but they point to an economy still growing at a measured pace.
Schemes renewed for another year
All current property schemes are set to continue in 2027. Incentives for buying and renovating residential property remain, as do those supporting renewable energy and the purchase of electric vehicles, so the framework buyers and owners have relied on stays in place. Details of individual schemes, including eligibility and thresholds, are expected once the measures are published in full.
Airspace and development rights
The most significant new property measure concerns the sale of airspace development rights. Government has noted that, in some of these transactions, tax may currently be calculated on only part of the completed property’s value. The new rules will require fuller disclosure of the total agreed consideration, tighten valuation and verification, and tax transactions according to their economic substance, including arrangements with intermediaries or developers who are not named in the transfer deed. They will apply prospectively, with the stated aim of giving buyers, developers and professionals clearer guidance and greater legal certainty while preserving legitimate development practice.
This is one to watch at the upper end of the market, where penthouses and upper-floor residences in new developments are often sold before completion. Buyers of such homes, and owners thinking of selling the airspace above an existing building, should take professional advice once the detailed rules are out.
Short lets and construction
From 1st January 2027, the proposed eco-contribution will be €10 per night for short-let apartments, capped at €80, and €8 per night for hotels, guest houses, serviced apartments and other collective accommodation, capped at €64. Against nightly rates at the top of the market the sum is modest, but it is a cost owners and managers will want to build into their pricing and explain to guests.
For developers and contractors, a mandatory reverse charge mechanism will apply to construction-related supplies between businesses: the customer, not the supplier, accounts for the VAT, and may recover the VAT self-charged, subject to the applicable criteria. Alongside the new rules on development rights, it points to greater clarity in how property in Malta is built and transferred.
For local and international buyers considering a home in Malta, conditions remain broadly settled. Christie’s International Real Estate Malta works with buyers, sellers and landlords, alongside their notaries, lawyers and tax advisers, on how the Budget may affect the timing, cost and structure of a property decision.
This article provides general information based on the Budget 2027 announcements and does not constitute tax or legal advice. Measures remain subject to legislation and published guidance.
Photo Credit: Christie’s International
