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Tax: Transfer of Property Acquired through Purchase

by www.ird.gov.mt

The Income Tax Act in regard transfer of property acquired through purchase gives you an idea of what taxes you should pay according to when you have bought the property or for how long have you been living in the same property.

 

Transfer of Property Acquired through Purchase

 

1. If I transfer immovable property which I had acquired through purchase, how will I be taxed?

 

If you had purchased property and you are going to sell it or transfer it in any other manner (including by donation), it is important to see whether seven years have passed from the date of purchase.

 

If seven years have not elapsed, you may choose either to have the transfer taxed under the old system or at 12%.

 

If seven years from the date of purchase have already passed you must be taxed at 12%.

 

To find out how you are taxed under the old system click here.

 

For more information on taxation at 12% click here.

 

2. What if the seven years from the date of purchase have already passed?

 

If more than seven years have passed since acquisition, you will be taxed at 12% of the value of the property. For example: if you are selling your house for €100,000, the tax will be €100,000 x 12% = €12,000.

 

3. Can I deduct the value of the acquisition from the transfer value of €100,000?

 

No. In this case, the acquisition value of the property cannot be deducted from the transfer value. The 12% is applied directly on the full transfer value.

 

Source: www.ird.gov.mt

Home Guide Articles

Tax: Transfer of Property Acquired through Purchase

by www.ird.gov.mt

The Income Tax Act in regard transfer of property acquired through purchase gives you an idea of what taxes you should pay according to when you have bought the property or for how long have you been living in the same property.

 

Transfer of Property Acquired through Purchase

 

1. If I transfer immovable property which I had acquired through purchase, how will I be taxed?

 

If you had purchased property and you are going to sell it or transfer it in any other manner (including by donation), it is important to see whether seven years have passed from the date of purchase.

 

If seven years have not elapsed, you may choose either to have the transfer taxed under the old system or at 12%.

 

If seven years from the date of purchase have already passed you must be taxed at 12%.

 

To find out how you are taxed under the old system click here.

 

For more information on taxation at 12% click here.

 

2. What if the seven years from the date of purchase have already passed?

 

If more than seven years have passed since acquisition, you will be taxed at 12% of the value of the property. For example: if you are selling your house for €100,000, the tax will be €100,000 x 12% = €12,000.

 

3. Can I deduct the value of the acquisition from the transfer value of €100,000?

 

No. In this case, the acquisition value of the property cannot be deducted from the transfer value. The 12% is applied directly on the full transfer value.

 

Source: www.ird.gov.mt

Home Guide Articles

Tax: Transfer of Property Acquired through Purchase

by www.ird.gov.mt

The Income Tax Act in regard transfer of property acquired through purchase gives you an idea of what taxes you should pay according to when you have bought the property or for how long have you been living in the same property.

 

Transfer of Property Acquired through Purchase

 

1. If I transfer immovable property which I had acquired through purchase, how will I be taxed?

 

If you had purchased property and you are going to sell it or transfer it in any other manner (including by donation), it is important to see whether seven years have passed from the date of purchase.

 

If seven years have not elapsed, you may choose either to have the transfer taxed under the old system or at 12%.

 

If seven years from the date of purchase have already passed you must be taxed at 12%.

 

To find out how you are taxed under the old system click here.

 

For more information on taxation at 12% click here.

 

2. What if the seven years from the date of purchase have already passed?

 

If more than seven years have passed since acquisition, you will be taxed at 12% of the value of the property. For example: if you are selling your house for €100,000, the tax will be €100,000 x 12% = €12,000.

 

3. Can I deduct the value of the acquisition from the transfer value of €100,000?

 

No. In this case, the acquisition value of the property cannot be deducted from the transfer value. The 12% is applied directly on the full transfer value.

 

Source: www.ird.gov.mt