Malta 2021 Budget Increases Incentives To Purchase Property.
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Back in June of 2020 as part of the Malta Economic Regeneration
Plan, the government slashed property stamp duty rates motivating
both buyers and sellers to invest in themselves and the economy.
The move ensured the continued stability for the private property
market in Malta.
The stimulus package – geared at kickstarting the Maltese
economy – was implemented after the initial Covid-19 outbreak
worldwide. The implemented strategy saw that first-time buyers
would be exempt from tax on the first €175,000 of the property
value. Anything over the initial 175k would be subject to a stamp
duty of 5%.
The economic regeneration plan introduced a drop in the stamp
duty rate down to 1.5% while the withholding tax for the seller saw
a decrease to 5% down from 8%. These rates even applied to
properties already under Promise of Sale (POS) or Konvenju
providing that the contracts were signed on or after 9 June 2020.
This will now hold until the end of March 2021 and until the end of
2021 for the final signing of contracts of sale.
Following the 2021 Malta budget given 19 October by Finance
Minister Edward Scicluna – the slashed duties for first-time
buyers have been extended to the end of 2021 and the tax-free
threshold of €175,000 has been increased to €200,000 for
first-time buyers. Taxes with regards to property donations have
also been reduced. Previously only the first €200,000 of the
value of the property would be exempt from tax – that figure
has now increased to €250,000.
The additional implementations of these relief measures will
serve to further the stabilisation of the private property market
in Malta and afford many the opportunity to purchase property that
previously may have seemed unattainable.
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