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The Silver Lining of Covid-19

Reduction in Taxes and Duty on transfers of immovable property!

Malta | Reduction in Taxes and Duty on transfers of immovable property!
Were you thinking of buying or selling a property but put a halt to it because of the coronavirus pandemic? Well think again…

In addition to the Economic Recovery Plan issued on the 9th of June 2020 by the Government of Malta in order to boost the archipelagos economy after being hit with the infamous coronavirus pandemic, two new legal notices (LN 240 & LN 241)  related to the Real Estate Industry have been implemented.

These two legal notices highlight a temporary reduction on the rate of Stamp Duty (for buyers) and Final Withholding Tax (for sellers) on property transfers on the first €400,000 of the price. It stated that Stamp Duty will be reduced from 5% to 1.5% and Final Withholding Tax would be 5% instead of 8% (default rate of tax on transfer on immovable property)  or 10% ( tax rate which generally applies on properties acquired before 1st January 2004).

The measure applies to transfers inter vivos of immovable property or any real right over such property made on or after the 9th June 2020 but before the 1st April 2021. A transfer will only qualify for the reduced rates if the notice of the final deed in relation to the transfer is given to the Commissioner for Revenue by the 30th April 2021.

Thus, this reduction also applies to properties that are currently under a promise of sale agreement, given that the final deed ( contract) is signed within the stipulated date mentioned above.

If you are first time buyer, second time buyer or simply looking to invest your money in real estate, with these newly implemented legal notices you can get a reduction in tax of up to €14,000 depending on the value of the immovable purchased.

If you are selling your property you can also benefit of a reduction in tax from 8% or 10% down to 5% on the first €400,000 worth of property.

Check latest properties to buy on Malta Rent Flat website.

 

  • Were you thinking of buying or selling a property but put a halt to it because of the coronavirus pandemic?

    In addition to the Economic Recovery Plan issued on the 9th of June 2020 by the Government of Malta in order to boost the archipelagos economy after being hit with the infamous coronavirus pandemic, two new legal notices (LN 240 & LN 241)  related to the Real Estate Industry have been implemented.

  • Are you first time buyer, second time buyer or simply looking to invest your money in real estate?

    Read about these newly implemented legal notices by which you can get a reduction in tax of up to €14,000 depending on the value of the immovable purchased.

The Real Estate App is available for download in the Apple App store and for Android users in Google Play.

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