What you need to know:
· With effect from 20 October 2020, first time buyers will be exempt from duty on the first €200,000, increased from €175,000.
· The rate of duty on the acquisition of residential properties shall be reduced to 3.5% on the first €200,000 for second time buyers.
· The rate of 3.5% shall also be applicable on the first €200,000 on inheritance of their own residential property.
· The duty free portion on the donation of property by parents to their children for the latter to use as their residence shall increase from €200,000 to €250,000. Amounts in excess of €250,000 shall be subject to duty at the rate of 3.5%.
· The reduced income tax and duty rates on the inter-vivos transfer of immovable property in Malta of 5% and 1.5% respectively for the first €400,000 will continue on promises of sale agreements registered by 31 March 2021 provided that the contract is entered into by 31 December 2021.
· During 2021, all profits derived from the assignment of rights on a promise of sale relating to immovable property will be taxed at a final tax rate of 15% increased from the first €100,000.
· Extension of emphyteusis on commercial properties will be possible to the extent that there will be investment on the property.
· A new Authority regulating the construction industry will be established as from 2022 with the primary aim to safeguard the local environment and reduce accidents on construction sites. This Authority will be responsible to issue the necessary regulations and standards required within this industry. Decisions may be contested with an independent tribunal to be set-up. A new Compensation Fund will also be formed to provide redress for any damages suffered as a result of any accidents.