The government’s budget for 2020 has announced some new measures related to property while renewing successful schemes from the previous years.
Stamp duty exemption for first-time buyers increased. The exemption will now apply to the first €175,000 of the value of the property.
The stamp duty reduction scheme for second-time buyers has been extended.
People under 40 who cannot afford the initial deposit on a home loan will be eligible for a €17,500 interest-free loan repayable over 15 years.
There is a new tax exemption for those who buy a property they have been living in, but do not own.
Those who inherit a property and chose to live in it can now benefit from reduced stamp duty of 3.5% on the first €175,000 (up from €150,000).
People transferring a promise of sale to a third party will be subject to a 15% tax (instead of the previous 35% tax for the first €100,000 profit made).
All exemptions on stamp duty (2nd-time buyers, property purchase in Gozo and UCA, etc) are further extended for another year.
Tax exemptions for the purchase of vacant properties and properties in Gozo have also been extended.
Refund schemes for restoration (Irrestawra Darek) are also being rolled over.
A housing benefit scheme for tenants paying more than 25% of their income has also been extended for another year. Income caps on eligibility thresholds for rent benefits have been extended: up to €19,000 in income for single people and €32,000 for families with children.
The new rent law will be introduced next year.
Cash transactions in real estate, car, yacht, precious metals and art, purchases will be limited to €10,000