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.