The below are the key highlights emanating from the Budget Speech Malta. The theme chosen was 'a strong economy' for the 2016 budget. This particular theme was chosen because economic indicators are pointing towards a consistent growth for Malta's economy. Finance Minister Prof. Edward Scicluna, presented the Budget 2016 in The House of Representatives yesterday evening.
Some of the main highlights that have been announced in Budget 2016 are as follows vis-à-vis the property market.
It is also a positive outcome for the local property market. The below are some key highlights.
- A new first time buyer scheme is in place applying retrospectively from 01/07/2015 till the end of 2016. It is understood that this will be applied differently to the previous scheme. We shall be providing more details once guidelines are issued. Maximum savings are capped at €5,000.
- 15% final tax on rental of immovable property, extended to the rental of commercial property. Excluding group of companies. This is most likely to work in a similar way to the residential property scheme. We shall be providing more details once guidelines are issued.
- Stamp Duty on transfer of property within an Urban Conservation Area (UCA) is reduced to 2.5%, for contracts between 01/01/2016 and 31/12/2016
- The rate of final withholding tax on transfer of restored property within an Urban Conservation Area effected in 2016 is reduced to 5%.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.