The Maltese Government has really opened the doors to massive savings for those who are interested in properties located in Urban Conservation Areas (UCAs).
Buyers are exempt from capital gains tax and stamp duty on the first €750,000 of the value of the property if it is located in an UCA, meaning this can save you €37,500 on the first €750,000. Vendors also save any tax due on the sale of their property since no capital gains tax is payable on the first €750,000 by vendors. This is excellent news for those lovers of older and bigger properties which mean the savings you incur can be put towards upgrading and renovating the property. This may lead to even further savings as Malta’s Ministry for Finance and Employment launched a grant scheme for the restoration and finishing of residential properties that are privately owned.
This means that under this scheme you will be reimbursed for eligible expenditure incurred by the applicant which is related to finishing and restoration of privately owned residential properties located within Urban Conservation Areas (UCAs). It also applies to properties that have been 20 years or longer ago and ones that have been standing vacant for more than seven years. Even newer properties are eligible so long as they have been developed in conformity with the approved criteria as defined by the established guidelines set out and approved by the official board appointed by the Minister responsible for finance.
The government’s official web page ( https://finance.gov.mt/linjigwida/Pages/Restoration-Grant.aspx ) further states that:
- Between the 12th of October 2021 and the 31 st of December 2024, eligible applicants may apply twice on each property for a grant of 18% on the costs of restoration and finishing up to an aggregate maximum of €54,000 for each property.
- In cases where an applicant intends to apply for the grant on more than one property, a separate application for each property must be submitted by the applicant for each property being applied for.
This grant applies for those who are going to purchase, or already have these types of properties and wish to restore and finish these properties. The restoration work has to be carried out, completed and issued a receipt between the 12 October 2021 and the 31 December 2024.
What is considered eligible expenditure consists of the following:
- materials, labour, the hiring of equipment, professional fees such as architect’s fees, required specialist consultancy and project management costs. These costs will all be capped at maximum rate of 10% of the total eligible expenditure applied for in each application.
- The costs of planning permit fees and
- other government charges that are directly related to restoration and finishing.
This incentive is in effect until October 2024.
To conclude, these measures have been introduced in order to stimulate investment in Malta’s heritage properties and to promote the traditional Maltese building style. With the uptick in the general public’s interest in anything to do with homes that are unique and historic, these measures will go a long way in the renovation and preservation of Malta’s unique heritage properties for following generations. It will also encourage newer buildings to be constructed and designed along the lines with the traditional hallmarks of Maltese architecture, something that has been decreasing in years past.
If you are interested in unique homes within the protective boundaries of UCA’s and want to benefit from all these wonderful incentives and stimulus packages available, why not give us a call or visit us at Homes of Quality?
211 Tower Road, Sliema SLM 1602, Malta. Phone: (+356) 2277 0620 | Email: info@hoq.com.mt
