Budget 2020 – First & Second Time Buyers, Real Estate Market

The 2020 Budget was delivered by Finance Minister Edward Scicluna on the 14th of October 2019. Overall, the budget brought good news for property owners and offered low-income property buyers a way to enter the housing market.

It would have been justified for the government to slow down after years of success. But we are not doing so. This can be seen by the number of measures introduced in this budget. This is a social budget aimed to improve the quality of life of all sectors of society, in particular the ones mostly in need. We have drawn up a list of the challenges and how we are going to tackle them. This budget is prudent in public expenditure to reduce debt, and save up for future generations. This is being done to keep away risks. This budget is aimed for us to continue to grow together.

Here are some of the most important points which will have an effect on Malta’s real estate market:

  • The Citizenship by Investment Programme is valid contributor to the Maltese economy, but even without it the economic surplus would still be achieved.
  • As from next year, purchasing of property cannot be done exclusively in cash. A limit of €10,000 in cash is to be established.
  • Government working on better connectivity at sea. Zones such as Cottonera, Marsaxlokk, Marsascala, St Paul’s Bay, St Julian’s and Mellieha will be included in these connectivity plans.
  • Government will be building 1,700 new housing units.
  • Government will be aiding people under 40 years of age who are unable to pay the 10% down payment on housing. The government will be paying the deposit which needs to be paid back within 15 years. (Maximum €17,500).
  • Housing schemes introduced in the past years, including those for first-time or second-time buyers, will be extended to 2020. As from tomorrow, first-time buyers will be tax exempted on the first €175,000 (up from €150,000)
  • Government will be working on a rent reform exercise.
  • Scheme to restore facades of old houses Irrestawra Darek extended for a further year
  • Schemes for property purchases in Gozo, urban conservation areas, second time buyers and equity sharing will be retained


Were you one of the first people to install PV panels at your home? If so, your deal to sell electricity back into the grid through the beneficial feed-in tariff is set to expire.

To help sweeten that pill, the government will be offering these PV early adopters a grant of up to €1,000 to install a battery in their home. Battery storage effectively allows you to store energy your PV panels have generated and then use it when it’s needed.