It is seldom that we have some good news during these tough economic times, but last year Malta’s Government announced some relief plans for buyers and sellers alike as part of its Covid-19 economic stimulus package.
As part of this recovery scheme launched by the government in June, buyers and sellers alike were in for huge savings and discounts when it came to paying stamp duty and withholding tax. Should you be in the market to buy or sell a property, it truly pays to sign your Promise of Sale before 31 March 2021 to benefit from these one-off, exceptional savings measures so long as the final deed is signed before the 31st of December 2021.
Until the end of March 2021, buyers will have their stamp duty rate reduced to 1.5% instead of the usual 5%. The Urban Conservation Area and First Time Buyers Schemes can also be used simultaneously with this reduced rate in stamp duty.
Furthermore, sellers will during this period pay final withholding tax of only 5% instead of 8 or 10%, which is the norm.
The reductions apply to property value up to the first €400,000 of the total price and any fees in excess of this amount will be calculated at the previously applicable rates. Immovable property regarded as donations do not benefit from the schemes mentioned.
There's never been a better time to buy and sell property and Homes of Quality are best positioned to help you find the perfect property or to help you find the ideal buyer for your property.