On 19th October 2020, the Government of Malta announced its budget for 2021.
Once again, the property market has proven to be of a priority to the Government, with several successful incentives have been extended and improved.
Here are the highlights of the incentives announced during the 2021 Budget.
- The Minister of Finance, Edward Sciculna announced during his budget speech that the scheme to encourage first-time buyers to buy a property has been extended, with the property value eligible for a reduced tax rate, being extended from €175,000 to €200,000. This is the second time that the Government of Malta has improved the first-time buyer scheme. Initially the limit was of €150,000 and has been upped to €175,000 and now increased to €200,000.
- The Legal Notice 240 of 2020 provides for a reduced rate of duty for any inter vivos transfer of immovable property, or any real right over such property whereby the duty chargeable on the first €400,000 be chargeable at the rate of €1.50, as opposed to €5 for every €100 has been extended to March 2021 for promise of sale agreements and until 2021 for the signing of contracts of sale.
- The tax on property donation is also being eased, with the first €250,000 in the value of a property being tax-exempts, up from the current €200,000.
The Malta Developers Association greeted the extension of several incentives which encourage property purchases positively. The Association welcomed initiatives to encourage developers in investing in efficient machinery.
Therefore, if you have been considering purchasing a property for the first time, this is the time to seriously go ahead and purchase your first home. The incentives mean a considerable amount of savings in tax and stamp duty payments.
Speak to one of the property negotiators at Owners Best if you would like to learn more how you can benefit from any of the above incentives.