Malta Property News

Get our latest property news updates

Malta Budget 2017 at a Glance

Malta Budget 2017

First-time buyers’ scheme extended

The first-time buyers’ scheme has been extended to acquisitions made for the year 2017. The scheme allows individuals who are buying their first residential property to benefit from a 3.5 per cent stamp duty exemption on the first €150,000 paid. First-time buyers of properties exceeding €150,000 will only pay a 5 per cent stamp duty. This translates into savings of up to €5,250 when purchasing your first property.

Restoration grants up to €100,000 for first-time buyers

A new budget proposal has provided for first time buyers of immovable property within any Urban Conservation Area or a number of scheduled properties to benefit from a subsidy of up to €100,000 on the expenses incurred throughout the restoration works of a property.

Stamp duty reduction on Gozo properties

Stamp duty paid on residential property in Gozo has been reduced from 5 per cent to 2 per cent. This applies to all those who acquire a residential property in Gozo by the end of 2018, provided that the promise of sale agreement is registered by the Inland Revenue Department by the end of 2017.

Changes in tax on the transfer of inherited property

All transfers of inherited property that are made through a judicial sale by auction will now be charged 7 per cent tax on the transfer value provided that the property transferred was inherited before 25 November 1992. In addition to this, an inherited property could be charged tax based on the applicable marginal rates on the gain derived, subject to the 7 per cent provisional tax, if the property transferred was inherited after 24 November 1992.

In order to consolidate tax collection, all transfers of inherited property by means of a judicial sale by auction will now be subject to a final tax rate of 7 per cent on the transfer value.

Anti-abuse on registration of rental contracts

Currently, there is a 15 per cent tax regime on the rental of residential or commercial property. In an effort to curb abuse, all property rental contracts, including those subject to renewal, pertaining to a duration of at least three months, are required to be registered with the Inland Revenue Department either by the lessor or lessee. In the event that a property rental contract has not been registered with the IRD, the lessor will be subjected to the penalties contemplated by law.

One Comment

  1. Rodianne Fenech

    on   said 

    Hi. Im Rodianne Fenech and we bought an old town house. With regards this Restoration grants up to €100,000 for first-time buyers can you explain further?

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>