Budget 2020: Property

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