The Finance Ministry has clarified the budget measure that would remove stamp duty and capital gains tax for certain properties on the first €750,000, after some confusion over its implementation.
The budget measure states that for properties that have been built for more than 20 years and have been vacant for more than seven years, for properties within the UCA and for new properties built in a style and architecture that is typically and traditionally Maltese, the government will completely remove the capital gains tax and stamp duty on the first €750,000 of the property price. “This measure also applies to all those who have a promise of sale and still have not signed the final contract.” Aside from this, first-time buyers of these properties in Malta will receive a €15,000 grant. Gozitan first-time buyers purchasing such a property in Gozo will receive a €30,000 grant.
A government spokesperson, in response to questions sent by this newsroom, said: “These measures will come into effect in the coming time upon the publication of the legal notice. The measures that fall within the established parameters will be retroactively effective from the 12 October 2021. Individuals who between this date and the publication of the legal notice would have paid the relative taxes would be reimbursed of the relevant dues should they fall within the parameters of the legal notice.”
“As explained in the budget, all UCA properties are part of the three type of developments which benefit from these incentives (the others being abandoned properties (built over 20 years age, and which have been uninhabited for more than 7 years) and new developments which respect the Maltese identity/characteristics (the legal notice will provide all the details on how this will work),” the spokesperson said.
“Currently, the Ministry is holding discussions with stakeholders in this area so as to proceed speedily on the publication. The reason this process had to take place in such a way is that had Government introduced these measures on January 1, 2022 it would have resulted in current contracts being postponed to that date in order for them to be eligible, creating a lot of issues. Feedback given to us by stakeholders was that such proposals should enter immediately even if there is such a temporary changeover phase that we’re currently in.”