Real Estate Schemes and Incentives updated in Malta Budget for 2024

Despite a global economic slowdown, continued supply chain disruptions, monetary policy tightening and persistently high inflation which continue to constrain household purchasing power, in 2023, Malta’s economy continued to grow. Presenting the national Budget for 2024, Malta’s Minister for Finance Clyde Caruana, outlined a series of fiscal measures and incentives to stimulate the economy and support various sectors.

Here are some highlights related to the real estate industry.

• The duty exemption for first time buyers and the partial stamp duty refund to second time buyers will be extended for another year.
  
• Existing property schemes whereby income tax and duty exemptions on the first €750,000 of the higher of the value and consideration of a property located in a UCA (Urban Conservation Area) or which had their construction completed at least 20 years before the date of the transfer and are vacant on the transfer date and have been so vacant for a period of 7 continuous years immediately preceding transfer date.
  
• A scheme that provides for a reduced rate of 2% duty, instead of the standard 5%, on acquisitions by individuals of residential property located in Gozo will not be extended beyond 31 December 2023.
  
• The first €200,000 of the consideration of the sale of properties leased by the Housing Authority from private owners shall be exempt from income tax and duty.
  
• The maximum grant to be paid under Private Rent Housing Benefit Scheme will be increased as follows:
  €4,200 for single and couples without children (€3,600 in 2023),
  €5,400 for families with one child (€4,800 in 2023),
  €6,000 for families with two or more children (€5,000 in 2023).
  
• VAT refunds (up to a maximum of €54,000 on the first €300,000) will continue to be granted on expenses incurred for the restoration and improvement of qualifying properties, with the terms of the scheme updated to address an anomaly under the current scheme wherein an individual receives less than a couple under same circumstances.
  
• Aid to restore properties of a certain character will be offered again in 2024 to incentivise the preservation of traditional heritage.

For more detailed information and the latest updates on existing schemes and incentives related to the property sector, speak to your trusted real estate professional or financial advisor.