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property forsale, to let, malta, fsm
property forsale, to let, malta, fsm

Exemption from Duty for First Time Buyers
(9th August 2014)


Following a meeting held on 7/11/2013 with the Notarial Council, the Minster for Finance, Hon. Prof. Edward Scicluna, clarified and explained the intended implementation of the measure introduced in the Budget Speech 2014 and the measures that have to be adhered to:

The premise according to the Budget speech:
"Se tinghata koncessjoni ta' darba lil dawk il-persuni li qatt ma kellhom proprjeta immobbliq abel l-1 ta' Jannar 2014, sew direttament jew indirettament, u li se jaghmlu l-kuntratt finali fis-sena 2014, sabiex ma jhallsux 'duty' fuq l-ewwel 150,000 Ewro. Din il-mizura mistennija taghti spinta lill-industrija tal-proprjetà u tghin lix-xerrejja zghazagh jiffrankaw sa 5,250 Ewro fuq ix-xiri tal-ewwel residenza taghhom."

Subject to the following conditions:

  1. This scheme is a on e-time injection commitment.
  2. Time Bracket: This one-time benefit applies to Promise of Sale Agreements (POS) signed on or after 1st July 2013 and those deeds published on or after the 5th November, 2013 up to the 31st December 2014. The notary who receives any deed of such a transfer shall record in the deed a written declaration by the person so acquiring that this is the first immovable property acquired inter vivos by him and the notary shall warn the said person of the importance of the truthfulness of such declaration.
  3. Foreigners and non-residents can benefit under this scheme as long as they insert a declaration that they do not own any other property and they do not require an AIP permit.
  4. Any person can qualify be it a couple or a single person.
  5. A person cannot qualify if s/he acquired any property inter vivos before the coming into force of the legal notice.
  6. The benefit is to be applied pro-rata where any one of the purchasers already owned or owns property acquired inter-vivos.
  7. If the (PoS) was signed prior to 1st July 2013 the purchaser cannot benefit under this scheme even if final deed is published by 31st December 2014.
  8. If a PoS was signed prior to 1/7/2013 and is rescinded and another POS signed with the same parties/property, the purchasers will not qualify for the exemption. The IRD will check their records and will inform the parties that they will not benefit under this scheme. This applies even if the parties annul the POS with Notary A, and later go to Notary B, parties will get caught. This also applies if they change the price of the property on the new POS or publish the deed straight away after rescinding the PoS.
  9. If one acquired property through a deed inter vivos and subsequently disposed of it, one will not benefit from this exemption. The purchasers must must literally be 'first-time buyers' and never owned any property acquired inter vivos.
  10. No provisional duty (1%) is to be collected and remitted to the IRD on PoS where this scheme is applicable. These 'special' PoS are to be registered with Neville and special receipts will be issued.
  11. PoS entered into after 1/7/2013 which have been already registered and 1% paid can apply for a refund if final deed is to be published by 31st December 2014.
  12. Until the official legal notice is published Notaries are to follow the legislation currently in force (ie: 3.5% to be collected on the first € 150,000) and apply for a refund at a later stage.

property forsale, to let, malta, fsm
property forsale, to let, malta, fsm