Reforms for Property Buyers
The government has revealed a number of updates to property-related measures in the budget for 2020. Among these, property buyers can look forward to interest-free loans equivalent to a down-payment of up to €17,500 as a 10% deposit for people of up to 40 years of age when investing in a property. The loan is to be repaid over a 15-year period. In addition to this, they will be able to benefit from stamp-duty exemption if they are first-time buyers on the first €175,000 of a property’s value.
It has also been declared that individuals acquiring or inheriting residential property which they intend to utilise as their own residence can access a reduced rate of duty of 3.5% on the first €175,000. Furthermore, the scheme enabling owners of historic buildings to restore the façades, known as “Irrestawra Darek”, has been extended for another year. Lastly, there are now extended income caps on eligibility thresholds for rent benefits of up to €19,000 in income for single people and €32,000 for families with children.
Reforms for Property Owners
The changes announced with respect to property owners are the following: firstly, the former can avail themselves of an introduction of 15% rather than 35% on assignment agreements, or “ċessjonijiet”, on the first €100,000 of declared profits. Secondly, property owners can now take advantage of a grant of up to €1,000 for the early adopters of PV panels in order to purchase a battery which may be utilised to store generated energy.