Malta Budget 2022

Oct 13, 2021

Last Monday, October 11th, the Minister of Finance of Malta, Clyde Caruana, presented the Budget for 2022. Some of the main measures related to property matters which are going to be applied for the next year are the following:

  • Exception from income tax on duty on documents, capital gains and transfers on the first €750,000 of the properties price which: have more than 20 years of age and which have been vacant for a period of time longer than 7 years or have been recently built by following a traditional Maltese architecture or, are built in a UCA.

This measure will also be applied to the properties that meet the parameters and a promise of sale has been already signed but the final contract has not.

  • First-time buyers buying the qualifying properties previously described will receive a grant of €15,000 in Malta, for the properties located in Gozo the grant will be €30,000.

  • Any future or current property owners of qualifying properties will be able to benefit from a VAT Refund of €54,000 on the first €300,000 costs of restoration and improvement costs of those kinds of properties.

    There will be as well some stamp duty exemptions depending on the buyer’s category, the following discounts will be applied:

  • First time buyers: exemption on the first €200,000 of the compensation.

  • Second-time buyers: refund on first €150,000 for persons with disability or custodians of disabled persons, or refund on the first €86,000 of the substitute property cost.

  • In Gozo, the properties bought will have a rate of €2 for every €100 or a portion of it in regards to inter vivos transfers placed on residential property.

  • The stamp duty rate reduction of the transfer value declared to be 1.5% on the first €400,000 of the transfer, and the 5% reduction on the first €400,000 of income tax on capital gains, will not be extended and, consequently, will end in June 2022.

  • The qualifying age for the Equity Sharing Plus plan is lowered from over 40 to older than 30 years of age. 

  • The tax on the first €200,000 of purchases or sales of properties that have been rented to renters benefiting from the "private rental housing aid scheme" for at least 3 years but no more than 10 years will be halved. On the other hand, If the renter has been renting the property for over has been rented to the acquiring tenant for more than 10 years, no tax will be charged on the purchase and sale.  

  • These measures, if not said otherwise, are effective for 3 years starting from 12 October 2021,

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