Property and housing
Deloitte Malta presents a summary and analysis of the Malta Budget 2018 speech presented to the House of Representatives by the Hon. Prof. Edward Scicluna, Minister of Finance on 09 October 2017.
The thresholds for persons to qualify for a rental subsidy will be further widened such that more persons are eligible. Furthermore, special thresholds shall apply for elderly persons aged 65 years or more. Conditions for such measures shall be published by the Housing Authority.
Property rental sector
A white paper shall be issued to create a legal framework for the property rental sector which is fair to both the owner and the lessee. This shall cover a number of considerations such as the requirement to register rental contracts.
Duty exemption for first time buyers
Individuals buying their first residential property currently benefit from a duty exemption on the first €150,000 paid. Such exemption will be further extended to first time acquisitions made in 2018.
Reduction in duty for second time buyers
Individuals who have sold their residential property in order to acquire another residential property shall be eligible to a refund of duty of up to €3,000, provided that they do not own any other property at such time. Such maximum refund is increased to €5,000 for persons with special needs. Parents of persons with special needs may also benefit under this scheme. This measure will come into force as from 10 October 2017.
Duty on acquisition of property in an Urban Conservation Area (‘UCA’)
Acquisitions of property located in a UCA which took place between 1 January 2016 and 1 October 2017 were subject to duty at the reduced rate of 2.5% instead of 5%. This scheme shall be extended by a year.
Duty on acquisition of property in Gozo
Individuals acquiring their residential property in Gozo currently benefit from a reduction in the duty rate from 5% to 2%. This scheme shall be extended by a year.