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.


  1. Thanks for sharing those information and hope to see more updated property budget for this upcoming year. Keep it up.


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