Urban Conservation rental properties to benefit from reduced Government taxes


The government in the next few weeks will announce a scheme of reduced tax where properties in urban conservation areas are rented out, Finance Minister Tonio Fenech said today. He was speaking as the government launched a scheme whereby heirs can transfer their share of properties in urban conservation areas to one heir who would be responsible for their restoration. In so doing the heirs would be exempted from the 5% duty on the transfer of the property.

The scheme, originally announced in the Budget, is the second phase of another scheme where the government is issuing rebates of up to 20% on the cost to restore grade I and grade II scheduled properties in urban conservation areas. That scheme had attracted 800 requests for information, but so far only 95 applications have been submitted. Details of the new scheme were announced by Finance Minister Tonio Fenech and Environment Minister Mario de Marco.

The new scheme applies only to 2012 and 2013. Dr de Marco said the new scheme should lead to the restoration and use of properties which have been vacant because of problems between the heirs. He said that in the next few weeks the government will also announce a scheme to encourage the use of the use of these old vacant buildings for residential or commercial purposes.

Mr Fenech, giving a pre-view, said that when such properties were rented out, rather than paying tax at 35%, landlords would pay 15% if rented out for commercial use and 10% if rented for residential use. Dr de Marco said these schemes were giving the construction sector a focus, so that instead of building on virgin land or demolishing old buildings, the developers restored old buildings and put them to use.

Source: The Times of Malta online

Comments

Post a Comment

Popular posts from this blog

Fire safety regulations for apartment blocks to be proposed by CPD in coming weeks

Regulations will prevent fire incidents from escalating  The Civil Protection Department is in the coming weeks proposing a number of fire safety regulations for apartment blocks.  The measures follow recommendations in an inquiry led by Magistrate Joseph Mifsud following a fire at 77 “Waterways” Flat 3, Triq l-Aħmar, Marsascala, during which a man had lost his life. Six people had also been hospitalised.  They include that fire drills led by the administrator should be carried out in every apartment block, that each block should have fire extinguishers u fire blankets at a place that was visible and accessible and that there should be a smoke and fire detection alarm in the common area.  Other proposals are for emergency exit signage, easy accessibility to roofs, and that callers to emergency number 112 should give as much information as possible and identify a landmark for a faster response time.  These, the CPD said in a statement, were some of the measures that could be
Read more

Scheme to regenerate village core buildings launched

First-time buyers of scheduled buildings will be given a 70 per cent rebate on restoration works, thanks to a scheme launched this morning. The rebate, up to a maximum of €100,000, will cover facade and interior works, balconies, and even some forms of garden works. First-time buyers of property in Urban Conservation Areas meanwhile will be eligible for a maximum rebate of €10,000. The scheme, which will start on January 16, has an €18 million cap and is on a first-come first-served basis. Receipts must be provided. The Irrestawra Darek scheme was launched by the Planning Authority this morning to help with the regeneration of Malta's village core areas. The scheme was first announced by Finance Minister Edward Scicluna in the last Budget. The planning authority said it had reached an agreement with the Local Council Association to help councils provide residents with a conservation architect. Times of Malta online article here.
Read more