Typical Buying Procedure
When agreement on purchase price has been agreed between buyer and seller, an appointment at a notary, chosen by buyer, is set for signing a preliminary agreement (Promise of sale agreement).
Buyer deposits 10% of the purchase price, on account (meaning part of the purchase price)which is held at notary until researches prove good title and an architect (also chosen by buyer) confirms that the property is built according to regulatory permits, including The Planning Authority (MEPA).
A 1% provisional duty (part of stamp duty) is payable on the value of the property on this day too. A date for signing final deed is also set on this day, normally within 3-4 months but this can be negotiated according to buyers and sellers need and satisfaction. On final deed, remaining balance (90%) is paid to vendor and property is transferred to buyer. Stamp duty and notarial fees are also paid on final deed by purchasers. The final deed is eventually registered at the public Registry.
The First Time Buyer's Scheme
First time buyers within the EU, do not pay the 3.5% stamp duty charged on the first €150,000 of the value of the property, Saving them Eur5250. You can read more about in the 2017 Budget's Speech on page 18.
Buying in Gozo Scheme
Whoever buys a residential property in Gozo, within the year 2018, will pay 2% stamp duty instead on the normal 5%. You can read more about in the 2017 Budget's Speech on page 19.