The Malta Budget 2021 Is Promising for Property Purchases in Malta
The pandemic has hit various industries, including real estate. If you are contemplating buying a real estate property in Malta, but you are not sure if it’s the right time, this may be the sign that you should push through with it. The Budget for 2021 has promising benefits to the real estate field. Here are some of its highlights, and these would make you want to find a Malta property for sale right away.
The Malta 2021 budget focuses on the recovery plan of the country from the pandemic. Some of the highlights of the budget are vouchers for residents that they can use in retail stores and accommodation, pension qualification, and the rebuilding of the tourism industry. There’s also the tax scheme in the real estate field.
Better tax scheme for first-time buyers
Purchasing your first home is a big decision and investment. Besides your budget, you also want to consider various factors like the weather, economy, and neighbourhood. Malta is an excellent choice because of its great weather, stable economy, and friendly people.
Another reason to choose it is the improved tax scheme that the government gives to first time buyers. From the property value limit of €175,000, the eligibility for a reduced tax rate has now increased to €200,000. With the savings that you will get from tax, now is the best time to get the property that you’ve always wanted, especially if you are a first-time buyer.
Stamp duty refund on second-time buyers
The 2021 Budget does not only benefit first-time buyers but second-time buyers too. People who sell their residential property to buy another one are qualified to get a refund on their stamp duty. The refund amount is up to €3,000. People with special needs are eligible for a refund of a higher amount that is up to €5,000. However, this is only applicable if they do not own any other property at the time of selling and the new purchase.
Better tax rates on property acquired through inheritance or donation
A property donated by parents to their children, which will serve as the latter’s home, will have a lower tax rate. Prior to the Budget 2021, the maximum property value that is tax-free is only up to €200,000. It has now increased to €250,000. The tax rate for the value exceeding €250,000 is 3.5%. The 1.5% transfer tax concession for properties has also been extended for another year. Families who are looking to donate or transfer properties to other family members will save a lot on these new tax rates.
Stamp duty and income tax savings for all property purchases
It’s not just first time and second-hand buyers that will benefit from the new tax scheme this 2021. All property sales in Gozo and Malta with a promise-of-sale agreement will save a huge amount on stamp duty and income tax. It’s as long as it’s registered before or until March 31, 2021, and the contract is signed before or until December 31, 2021.
From €150,000, the value eligible for the tax scheme increased to €400,000. The stamp duty rate for the said scheme is 1.5%, while the income tax rate is 5%.
The Budget 2021 is encouraging for people looking to purchase their property in Malta. With the great savings through the various tax schemes and exemptions, now is an ideal time to make that purchase.
If you need help finding a Malta property for sale, get in touch with Frank Salt Real Estate. For over 50 years, they have been offering top-notch real estate services to both local and international clients. Contact them today for more details.