Budget 2023 - Property in Malta

The introduction of a ‘one-stop shop’ through ‘Start’ scheme to assist start-ups in establishing their business in Malta including assistance with applications to benefit from existing incentives.

Start-ups

• The introduction of a ‘one-stop shop’ through ‘Start’ scheme to assist start-ups in establishing their business in Malta including assistance with applications to benefit from existing incentives.

• A new Business Incubation Centre will be developed by Malta Enterprise through EU funding for innovative start-ups to continue diversifying Malta’s Economy.

• With effect from 1 January 2022, first time buyers will benefit from a €10k cash grant over a span of 10 years provided the property does not exceed €500k. Currently, first time buyers may benefit from a €15k cash grant (€30k for Gozo) with respect to the acquisition of qualifying property. Furthermore, the VAT Refund of up to €54k on the first €300k expenses incurred for the restoration and improvement of qualifying properties remains applicable.

• The duty exemption for first time buyers (exemption from duty on the first €200k of the consideration), second time buyers (refund of duty paid on the first €86k of the value of the replacement property and purchases of property in Gozo (rate of duty of €2 for every €100 or part thereof with respect to transfers inter vivos of residential property situated in Gozo) will be extended to the end of 2023.

• Assistance in terms of the Deposit Payment Scheme applicable to persons under the age of 40 to assist with financing the initial deposit required to acquire property will increase from €17,500 to €22,500, representing 10% of the consideration of the property of a value up to €225,000.

• Continuation of certain existing property schemes providing for an exemption from income tax and duty on the first €750,000 of the higher of the value and consideration of the property. The schemes, applicable to transfers made by the end of 2024, cover properties located in a UCA or which had their construction completed at least 20 years before the date of the transfer, are vacant on the transfer date and have been so vacant for a period of 7 continuous years immediately preceding transfer date.

• A board will be set up in the first quarter of 2023 to issue guidelines establishing the quality and aesthetic criteria of buildings, the transfer of which will benefit from reduced tax and duty. It is expected that this board will be the approving body of the property measure, also applicable until the end of 2024, providing for duty refunds on acquisition of properties built in a typical and traditional Maltese style and architecture. More detail on currently open schemes is available at: Tax and Duty Schemes on the Transfer of Immovable Property.

Property

• A board will be set up in the first quarter of 2023 to issue guidelines establishing the quality and aesthetic criteria of buildings, the transfer of which will benefit from reduced tax and duty. It is expected that this board will be the approving body of the property measure, also applicable until the end of 2024, providing for duty refunds on acquisition of properties built in a typical and traditional Maltese style and architecture. More detail on currently open schemes is available at: Tax and Duty Schemes on the Transfer of Immovable Property.