Some of the main highlights that have been announced in the budget for 2016 vis-à-vis the local property market are as follows:
- A new first time buyer scheme is in place applying retrospectively from the 1st of July 2015 until the end of 2016. This scheme will give buyers the opportunity to save up to €5,000 when buying their first residential property. It is understood that this will be applied differently to the previous scheme. More guidelines regarding this scheme still need to be issued.
- A final tax of 15% on income from the rental of immovable property is to be applied. This has been extended to the rental of commercial property, excluding groups of companies. Most likely, this scheme will work in a similar way to the residential property scheme, however similar to the first time buyers scheme, more guidelines still need to be issued.
- Stamp Duty on transfer of property within an Urban Conservation Area (UCA) is to be reduced to 2.5%, for contracts occurring between the 1st January and 31st December 2016.
- The rate of final withholding tax on the transfer of restored property within an Urban Conservation Area effected in 2016 is reduced to 5%.
For more information about buying property in Malta, kindly direct your request to firstname.lastname@example.org or visit our website.
Budget 2016, Malta first time property buyers scheme