Malta Budget 2022
THE 2022 MALTA BUDGET – HOW THE NEW MEASURES AFFECT PROPERTY & REAL ESTATE ON THE ISLAND
As the country looks towards the future post-pandemic, Finance Minister Clyde Caruana addressed the nation on October 11th 2021, and announced the latest Government Budget for 2022. The budget implements new measures to support a variety of social and economic elements including property, tax benefits, infrastructure investments, Urban Conservation Areas (UCAs) and Traditional Maltese Buildings.
How will these new measures impact the Real Estate industry in Malta?
The Maltese government recognised the demand to revisit homeownership, by introducing various schemes to assist pensioners, renters and first-time buyers.
FIRST-TIME BUYERS SCHEME
First-time buyers will receive a grant of €15,000, which will be doubled to €30,000 for properties located in Gozo for purchases of properties which are over 20 years old, in a UCA or built with traditional Maltese features.
RESTORATION INCENTIVES
Renovation and restoration of these properties will entitle you to a VAT refund up to €54,000 on the first €300,000 spent on renovation works.
COMMERCIAL RENTALS
The subsidies granted for businesses rentals will be extended
PROPERTY TAX BENEFITS
Tax benefits for private property that is rented out as affordable housing will be made available, while any such property sold to tenants will not be taxed.
HOME OWNERSHIP SCHEMES
There will be schemes to encourage homeownership, including equity sharing schemes and home insurance schemes.
TAX EXEMPTION
Exemption from income tax on capital gains and duty on documents and transfers on the first EUR 750,000 of the price of properties which were built more than 20 years ago and have been vacant for more than 7 years, are built in a UCA (urban conservation area) or properties built in a typical and traditional Maltese style.
If you would like further information regarding the latest Government Budget 2022, email us on info@oystermalta.com