The Ministry of Finance has on Monday 14th October 2019 delivered the Budget Speech for the year 2020. The following are the measures announced in the budget speech in relation to immovable property.
- With immediate effect, the threshold on which no stamp duty will be paid by first time buyers has increased from Eur150,000 to Eur175,000;
- Individuals who acquire or inherit residential property on which they plan to establish their own residence will be subject to a reduced rate of stamp duty of 3.5% on the first Eur175,000;
- A new scheme will be introduced which will be applicable to persons under the age of 40 to assist them with the financing of their initial deposit to acquire their immovable property. The assistance will amount to a maximum of Eur17,500 which will be repayable back to the Government over a 15 year period. No interest will be paid by such persons as this will be covered by the Government;
- Profits derived from the assignment of rights on a promise of sale agreement will be taxed at 15% rather than 35% for the first Eur100,000. Profits in excess of Eur100,000 will be taxed at 35%;
- Reductions on stamp duty applicable to acquisitions of residential property in Gozo, acquisitions of property by second time buyers and the purchase of vacant property in urban conservation areas have been extended for another year. The property restoration refund scheme has also been extended.