New Lower Tax Incentives and 0% deposit schemes for first time buyers

The Maltese Government has announced a multi-million economic stimulus package to help Malta recover from the economic consequences that COVID-19 has brought to the country over the past months.

Reduced stamp duty rates from 5% to 1.5%

Malta’s government has reduced the stamp duty for buyers and withholding tax for sellers in the property market, to help boost the secor after COVID-19.

Malta’s government is reducing the stamp duty buyers and withholding tax for sellers in the property market to help boost the sector following a COVID-19 shutdown.

This measure applies to anyone still under a promise of sale agreement or Konvenju and will cover the first €400,000.  The scheme will be available up until March 2021.

For buyers the stamp duty will drop from 5% to 1.5% whilst for the sellers the tax will drop from 8% to 5%

First time buyers will still be exempt from paying stamp duty on the first €175,000 of the property price.

The first time buyers’ scheme will be also extended to people who also bought a garage.

Young first time buyers can apply for €17,500 loan scheme as deposit when purchasing their first property

First-time buyers between the age of 21 and 39 years can also apply for a government loan of up to €17,500 to assist them raise the 10% deposit usually asked for as a down payment when buying a property.

Those eligible for this scheme will have to pay back the interest-free loan over a period of 25 years. Local banks BOV and APS have already agreed to partake in this scheme.

This article may be improved upon issuance of legal notice



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