Malta Budget 2013: Proposals for amendments to tax and stamp du

Trudy Marie Attard | Published on 30 Nov 2012

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As a general rule, the transfer of property in Malta is subject to tax at a rate of 12% of the transfer value.  In certain cases the transferor may opt out of the transfer tax and instead opt to pay tax on the capital gain arising from the disposal at the tax rates applicable to the transferor. One of the cases where an opt-out may be exercised is when property is being transferred within 7 years from the date of acquisition. A proposal has been made to extend the period in which the transferor may opt out of the said transfer tax to 12 years from the acquisition of the property.

As regards the acquisition of immovable property in Malta, the Malta Budget 2013 proposes:

1)     Where the property is bough as one’s sole ordinary residence, the reduced rate of stamp duty of 3.5% shall apply to the first €150,000 of the consideration paid. This reflects an increase of €33,530 in the bracket eligible for the reduced rate from the current amount of €116,470.  

2)     The removal of stamp duty on the inheritance of immovable property from parents to their offspring as of basis year 2013. 



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