First-Time Buyers Scheme
The 2016 Malta budget has been once again generous in favour of those prospective buyers of immovable property. The first-time buyers' scheme has been re-launched whereby prospective first-time buyers are exempted from paying stamp duty on the first €150,000 at the rate of 3.5% up to a maximum saving of €5000.
There has therefore been a minor modification on the previous scheme, whereby the full tax on the first €150,000 was waived. The remaining value of the property (in excess of €150,000) would be taxed at the full rate of 5%.
It is noteworthy to point out that the scheme would apply to buyer/s that are purchasing property which shall constitute their ordinary residence. This would have to be done against their declaration at the time of writing the contract and a clause is inserted therein.
There is no limitation whatsoever on the value or type of property in order to benefit from such scheme.
Those who bought property between last June and the announcement of the budget 2016 can also apply for a tax refund. This effectively means that this measure is being introduced retrospectively with effect from 1 July 2015 and will continue to apply until December 2016.
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Disclaimer: This article is for general information only and does not constitute advice, legal or otherwise. Always obtain professional advice for your particular situation.