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The following are the property related highlights announced in this week’s budget:
First time buyers’ exemption from stamp duty on the first €150,000 will be extended for another year.
The Planning Authority will establish incentives for property bought in urban conservation areas which needs renovation. A grant up to a maximum of €100,000 will be given to first time buyers for restoring a property in an urban conservation area.
A reduced rate of duty will apply to property acquired in Gozo. The rate of duty will be of 2% instead of 5%. The reduced rate will apply to sales involving promise of sale agreements registered during 2017 and contracts concluded by not later than end 2018.
Rental agreements for property rented over 3 months must now be registered with the Inland Revenue Department. Both owner and tenant will be entitled to register the lease agreement. Persons who fail to register lease agreements will be liable to a penalty.
15% withholding tax on rentals to be retained.
A pilot project will be launched whereby property owners who rent property for a minimum of 7 years to low income families will be eligible to pay tax on their rental income at a preferred rate of 5%.