The Covid-19 Regeneration measures have been extended further after the Prime Minister’s announcement on the 28th February 2021 by the publication of Legal Notices 129 and 130 of 2021. This initiative is part of the Government’s Economic Recovery Plan for Malta following the Covid-19 pandemic and its effect on the real estate market.
Reduced tax is now being applied to both stamp duty and property transfer tax, with a flat rate of 1.5% payable by the buyer on the first €400,000 of the immovable property being acquired and 5% payable by the seller also on the first €400,000. Any excess will be charged at normal tax rates apply according to law.
In order to benefit from such reduction, a promise of sale must be signed by the parties by not later than the 31st July 2021 (formerly 31st March 2021) and the final deed of sale must then be completed by 31st January 2022 (formerly 31st December 2021).