First time buyers scheme
Once again, the Maltese government has extended the first time buyers scheme for a further 6 months. The scheme allows the buyer to a stamp duty exemption on the first €150,000 of the value of the immovable property. This scheme, first introduced in 2014, was meant to close in June 2015; however it is now extended to the end of December 2016, with a maximum exemption of 5,000 euro.
Rental withholding tax
The government had previously declared a standard 15% withholding tax on rental apartments rented out by individuals. This scheme was aimed solely at individuals with companies still adding the rental income to . The new budget allows the same withholding tax for companies who rent out their properties.
Vacant Properties
Many times in Malta properties are left vacant because one property has been left to a large number of individuals who rarely all agree. Previously there was a 10 year delay should there be a dispute however the government has agreed to reduce the waiting time to sell the property to 3 years, if 51% of the heirs are in agreement
Reduction in stamp duty
Registration tax on properties or plots in Urban Conservation Areas have been halved to 2.5%. These properties are basically areas in Malta where the properties are protected and cannot be dropped down or the facade altered in any way.
