The Maltese government announced an exemption from income tax on capital gains and duty on documents and transfers on the first €750,000 of the price of properties which were built more than 20 years ago and have been vacant for more than seven years, or are built in an Urban Conservation Area or have typical and traditional Maltese architectural features.
This incentive also applies to qualifying properties for which a promise of sale has already been entered into but the contract has not yet been signed.
First time buyers of such qualifying properties will also receive a grant of €15,000, or €30,000 if the property is in Gozo.
These incentives came into force on 12 October 2021 and will be applicable for three years.
Buyers of such qualifying properties may benefit from a VAT refund of up to €54,000 on the first €300,000 of expenses incurred for the restoration and improvement of such properties.
A number of anti-abuse measures will be introduced in respect of this scheme.
The stamp duty exemption for first time buyers, second time buyers and purchases of property in Gozo will be extended. However, the reduction of the rate of stamp duty to 1.5% on the first €400,000 and the reduction of income tax on capital gains to 5% on the first €400,000 will not be renewed and will expire in June 2022.
The eligible age for the Equity Sharing Plus scheme will be lowered from over 40 to over 30 years of age.
The government also announced a 50% reduction in the taxes applicable on the transfers of property (up to the first €200,000) which have been rented out to tenants benefiting from the Private Rent Housing Benefit Scheme. This will apply to properties which have been leased for a period of not less than 10 years. If the property has been rented out to the acquiring tenant for more than 10 years then no tax shall be payable upon the acquisition and sale.
