- 08.12.2024
- 19:08
- 14.27°C / 57.686°F
Malta Budget 2016 – Property Tax Changes
Property Tax Malta – As the dust settles on the recent ‘Malta Budget 2016’ here is a useful breakdown highlighting the various property related points made. It is worth noting that particular attention has been made towards ‘Urban Conservation Areas‘ or UCA’s with the intention of encouraging the renovation of older properties in certain areas. A full list of the UCA’s can be found on the MEPA website.
Reduced rates for UCA related properties:
- Stamp Duty paid on immovable property acquired in an Urban Conservation Area (UCA) will be reduced by 50% to the total of 2.5%. In order to qualify final contracts must be signed between January 1st – December 31st 2016.
- The Final Withholding Tax on restored properties within a UCA will be charged at a rate of 5% rather than 8% to help offer incentives for renovating older properties.
Stamp Duty exemption for first-time buyers extended:
- Good news for those looking to get on the property ladder as the exemption of stamp duty for first-time buyers (on the first €150,000 of the properties value) has been extended until 31st December 2016. This offers a notable maximum saving of €5250.00 and is backdated to 1st July 2015.
Reduction in rental income tax rate for commercial property:
- The 15% Final Withholding Tax (FWT) on residential rental income has now been applied to the commercial sector (a sizable reduction of some 20% from the previous rate of 35%). However, this reduction will exclude rents between related parties.
Vacant properties:
- The legal period for heirs in dispute over the selling of inherited property has been reduced from 10 to 3 years. As an example, this means that if 51% of the heirs agree on a sale the property may be sold after 3 years rather than 10.
Abandoned Commercial property:
- The government is looking into what sanctions should be introduced to help prevent commercial buildings from being left empty, unused and derelict.
For more information about any of the above don’t hesitate to get in contact with us here at Perry Estate Agents on +356 2131 0800 / 2131 0088 or simply email: perry@perry.com.mt
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