The Malta Independent 15 October 2021, Friday

Budget 2022: Planning and property - Tax relief when purchasing older properties, UCA buildings

Kevin Schembri Orland Monday, 11 October 2021, 20:43 Last update: about 4 days ago

• Extension of first-time and second-time buyers’ scheme • PA to introduce aesthetics policy

The government has announced tax relief measures when purchasing certain types of properties.

Stamp Duty and Capital Gains tax will be removed on the first €750,000 when selling and purchasing one of the following property types: Those built more than 20 years ago and which have been vacant for seven years; for properties within the UCA; for new properties that are built in typical and traditional Maltese style and architecture.

Aside from this, first time-buyers of these properties will receive a €15,000 grant. First-time buyer Gozitan couples who purchase such properties in Gozo will receive a €30,000 grant. These measures will come into force the day after the budget for a period of three years.

From 12 October 2021, people who renovate such properties will be given a grant on the value of the VAT paid up to a maximum of €54,000 for the first €300,000 spent on restoration and finishing expenses. Certain regulations will need to be followed, including that houses cannot be divided.

The government will also extend, for another year, the reduction in stamp duty for first-time buyers, second-time buyers and the purchasing of property in Gozo, while the existing measures to mitigate the impact of the pandemic on this sector will end in June 2022.

The government also made several announcements regarding the Building and Construction Authority (BCA).

Next year a Bill will be filed regarding what is called ‘Document F’ that an architect uses to prepare building envelope plans, on the basis of which the engineer would prepare the building services plan. Once the bill is approved, this will lead to buildings wasting less energy.

The government is committed to introducing the first Building Code in 2022, in terms of demolition, excavation and construction works. It will include third party rights. In order to ensure that the Code will work as it will be meant to, the BCA will put forward legislation through which we would have Construction Project Managers at the workplace who can ensure that what would be stipulated will be implemented in the most professional way.

The Planning Authority (PA) will introduce an aesthetics policy as well as other measure to encourage comprehensive, uniform development that respects the urban environment. Aside from this, the PA applied for EU funds to launch a Built Heritage Restoration Scheme, through which new life can be breathed into historic buildings.

 

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