MEPA gives go ahead for MIDI nine-storey residential tower block

MEPA approves nine-storey tower block and two 14-storey residential blocks consisting of 102 apartments and catering outlets at ground floor.

The Malta Environment and Planning Authority has approved the construction for MIDI's Tigné Point's T-14 tower block, and two 14-storey residential blocks, comprising just over 100 apartments.

The decision was taken at a public hearing, where objections were raised by members of conservationist NGO Flimkien Ghal-Ambjent Ahjar, who claimed the plans were changed without any opportunity for the public to see them.

MIDI's decision to withdraw an application for a massive high-rise tower in Tigné was accompanied by a request by the same company for MEPA to process two other applications for the construction of two high-rise, albeit smaller developments.............

Follow this link for the full article on MaltaToday.

Government launches new temporary ground rent redemption scheme

The government this morning announced a new scheme which will enable tenants to redeem temporary emphyteusis in residential properties administered by the Joint Office and the Lands Department.
Government properties minister Jason Azzopardi said this would benefit hundreds of households, who would finally be able to become owners of their homes.

He said the new scheme opens on February 20 and will run for six months. It will enable the tenants to redeem their groundrent at very favourable rates.
Those who currently pay less than €5 per year as groundrent will be able to redeem their groundrent for €1,000.
Those between €5 and €10 per annum will be able to redeem for €2,000 and those currently paying between €10 and €20 per year will redeem for €3,000.
There are two conditions. If a property is sold within five years from when the groundrent is redeemed, the governemnt will be entitled to 25% of the price of the property. Disabled people, separated couples and those over 65 years old are exempt from this condition.
If, within 20 years, such residences are demolished to be replaced by flats, the government would charge between 10 and 25% on the profit.

Dr Azzopardi said a similar scheme was launched in 2001 and 5,500 applications were made, of which 3,400 have now been processed.

Source: timesofmalta.com Jan 19,2012 12:04

Short-term Construction Indicators: Q3/2011 - Malta National Satistics Office

A sample survey carried out among construction enterprises showed that employment went down by 2.5 per cent, wages and salaries decreased by 2.7 per cent and hours worked declined by 5.7 per cent when compared to the third quarter last year.

Date Published: 20-Dec-2011
Reference: 242/2011

View report here.
Source: NSO

Malta Housing Authority seeks property for rent, to sublet at subsidised rates

The Housing Authority has launched a new rental scheme through which property owners can rent their premises to the authority that will then sublease it to tenants at subsidised rates.
Property owners will benefit from a reduced tax rate of five percent on their guaranteed rental income and will enter a contract with the authority for a minimum of 10 years, said Housing Authority Chairman Charles Borg.

The property must be finished, have all necessary planning permits and be up to standard.
An independent board will evaluate property to ensure it matches standards and to determine how much the authority will pay, in commercial rates, depending on the location and size of the property.

The authority will then sublease the property at a subsidised rate, Mr Borg said. He added that the authority will take the responsibility of the property once leased. The authority would be strict when it came to regulating tenants as it did not want to discourage property owners from entering the scheme, he stressed.

Read the full article on The Times of Malta, here.

New environment permits system announced by MEPA

A new draft environmental permits system has been drawn up by the Malta Environment and Planning Authority (MEPA) to improve the regulatory framework applicable to industrial activities of environmental significance.

The Authority said the proposed system will improve the protection of the environment, while offering several advantages to industry, such as legal certainty, clearer definition of environmental liability and the opportunity to identify priority environmental issues to enable appropriate risk management.
"The system which is risk-based, focuses the regulatory efforts on activities with potentially significant environmental impacts. Examples of such facilities would include fuel and container terminals, shipyards, airports, batching plants, quarries, fish farms, waste management activities, industrial activities with a discharge to sea and certain manufacturing plants," it said.

Businesses that carry out such activities will be required to apply for an environmental permit within a set timeframe in order to continue operating. The permit will include conditions on emissions to air, discharges of wastewater, noise and vibration, management of waste and appropriate storage of materials. The environmental permit may also include an improvement programme, to ensure that compliance with environmental standards is achieved within a set timeframe.

Read the full article on The Times of Malta online, here.

Malta, Bermuda, sign tax information exchange agreement

A tax information exchange agreement has been signed between Malta and Bermuda.
Bermuda’s Ministry of Finance said the agreement was signed in London by Maltese High Commissioner Joseph Zammit Tabona and by Premier Paula Cox J.P. for Bermuda.
The TIEA provides for a full exchange of information between the two countries on tax matters. Premier Cox said this was a further demonstration of Bermuda’s commitment to being a responsible player in the global finance sector.

Read the full article here.

Malta Budget 2012 - Property sales, rentals and conservation incentives

Budget 2012 
Housing Highlights

Full report available from KPMG in pdf file format here.


In order to promote the regeneration of urban zones, a number of incentives are being introduced with respect to the acquisition, restoration and conservation of scheduled buildings in Grades 1 and 2 and properties in Urban Conservation Areas (UCAs):

1. Property transferred between heirs is exempt from duty on documents on transfers until 31st. December 2013;

2 A 20% rebate of costs of restoration (up to a maximum of €5,000) to individuals who restore their property;

3. Individuals or companies investing in the restoration of their properties for the purpose of sale or rent may benefit from the following concessions:

• i. Income from rent of residential purposes: subject to a 10% final withholding tax;
• ii. Income from rent for commercial purposes: subject to a 15% final withholding tax; and
• iii. Income from property sale: subject to a 10% (instead of 12%) final withholding tax on the sales proceeds or 30% (instead of 35%) on the gain.

4. Companies incurring expenses for the restoration of property for commercial purposes may benefit for a 20% tax credit on their expenditure (30% in the case of Grade 1 and 2 scheduled properties).

A preferential 10% final withholding tax on income derived from the rental of property to families qualifying for the rental subsidy may be benefited from by home-owners that register their property with the Housing Authority and satisfy any conditions laid down by the Authority.

UK tax axe falls on overseas property investors

Overseas property owners based in the UK are about to be targeted by a new HM Revenue & Customs "affluent unit", which has been set up by the British government to address what it sees as tax avoidance by the rich.

A new team of 200 taxation investigators and specialists has been established by HMRC to identify wealthy individuals who, amongst other things, own land and property abroad … such as a holiday home.


OPP understands that the tax attack unit will concentrate on overseas property assets first, and then switch its attention to UK-based commodity traders (who have been accused of helping to drive up food prices,) before looking into the number of UK residents who hold offshore investment accounts.

HMRC says that it will be using sophisticated "data mining" techniques to try and track down people who own overseas properties, but do not pay the right amount of tax.

Read the full article dated 07 Nov 2011 on OPP (Overseas Property Professional) here.

Hong Kong and Malta sign tax treaty

Hong Kong and Malta have signed a double taxation avoidance agreement and the prevention of fiscal evasion.
The agreement was signed today by Professor K C Chan, representing Hong Kong, and ambassador Joseph Cassar.......

"The CDTA clearly sets out the allocation of taxing rights between the two jurisdictions and the relief on tax rates on different types of passive income, thus helping investors to better assess their potential tax liabilities from cross-border economic activities. The agreement will boost closer economic and trade ties between the two places, and provide added incentives for companies in Malta to do business or invest in Hong Kong, and vice versa," the Hong Kong government said in a statement.


Read the full article on The Times of Malta here.

Tigne Point highrise tower planning application withdrawn - To be replaced by open landscaped area.

Plans to build a high-rise tower at Tigné Point have been scrapped, The Times can reveal. Instead, the tower, which was proposed by real estate developer Midi and opposed by Sliema residents, will be replaced by open landscaped space.

The consortium, which owns the multimillion euro project in Sliema, has withdrawn its planning application to amend the Tigné north master plan. Sliema residents and those who registered a formal objection to the development application have been told about the change in plans in a letter from the planning authority.

“The planning authority has been notified by the applicant of the withdrawal of the application, which was intended to amend the Tigné north master plan,” the letter said.

Read the full Times of Malta article here.

18th November deadline for regularisation of short let property adverts in Malta

20th October 2011
Circular to members

Further to a meeting with the Quality Assurance Department of the Malta Tourism Authority (MTA) it was brought to our attention that, according to Section 13 of the Tourism Operations (General) Regulations of the 31st May 2002 as amended (Subsidiary Legislation 409.08), all advertised holiday rental properties have to feature the MTA licence number.

13. (1) No person, may at any time, describe or advertise any tourism operation unless -
(a) there is a valid licence in respect of such tourism operation;
(b) he has obtained the prior approval of the trading name from the Authority.
(2) Every tourism operation shall quote the licence number in every advertisement, publication, leaflet, brochure, broadcast or other publication of whatever kind and in any reference whatsoever.

We have reached an agreement that we shall be notifying our members to regularize themselves concerning any advertising or electronic marketing of any of these properties by ensuring that any properties featured hold a valid MTA licence number that is featured in all adverts/ websites. It was agreed that members would regularize their position by Friday 18th November 2011.

Trafford Busuttil
President Federation of Estate Agents