As the leader in the Malta Real Estate Market we feel that it is our responsibility to keep you up to date with any happenings that may affect you and your family vis-a-vis cost savings and benefits that may be available to you. In response to the Annual Budget of the Government of Malta, which was delivered yesterday in Parliament, we would like to provide you with an overview.
Despite the short space of time we have already had very positive feedback from our clientèle and others within the industry. The RE/MAX Malta point of view is that the budget, with regards to the real estate industry, will generate a wave of new growth resulting in positively affecting the economy in general, ranging from young couples starting a new life together, to families improving their lifestyle to individuals who are in a higher salary bracket.
Hereunder please find a list of numbered points that summarise the benefits derived from yesterday’s Budget that will affect the general public and thus will generate a positive impact on the Malta Real Estate market:
- The first three hundred couples or individuals looking to purchase their first property in Malta will qualify for a 2.5% subsidy from the Government on Bank Loan interest rates for the first eight years.
- The 5% Stamp Duty tax threshold has been moved from €116,468.67 to €150,000 resulting in Buyers saving the difference of 1.5%, translating to the equivalent to €502.96 in stamp duty.
- For those who inherit property or receive a property in donation from their parents, with effect from 1st January 2013, will no longer have to pay the Stamp Duty cost of 5%.
- The period for opting out of the 12% final withholding tax capital gains regime on transfers of immovable property situated in Malta will be extended from 7 to 12 years.
The Government has also reviewed the policy of valuations on property such that a buyer may now submit a Banks architects’ valuation, which will then be accepted for calculation of relative Stamp Duty due. In particular cases where the value of the immovable property exceeds €250,000, buyer and seller may opt for the property to be valued by the Government’s architect (valuation valid for a 6 month period) before concluding the contract of sale, with such value representing the market value for stamp duty purposes.
If you are looking to buy a property outside of an Urban Conservation Area for restoration and development purposes, provided the conditions prescribed by MEPA are satisfied, you will benefit from a reduced stamp duty rate of 2% and also be granted an income tax credit of 20% based on the restoration and development expenditure, up to a maximum threshold of €200,000.
If you are interested in buying or selling a property and you require sound advice from a specialist, we would always recommend that you seek out a professional & reputable Malta real estate agent. At RE/MAX Malta we have the largest team of Sales Associates who are all experts in their various areas of the market. One should also note that we at RE/MAX Malta insist that our associates are kept up to date with recent real estate news – such as this – market prices and recent properties that have been recently reduced or priced to sell. Should you require any further information please do not hesitate to contact any one of our Sales Associates within the RE/MAX group.