Budget 2023: Property Highlights

We’re bringing you the highlights from the government’s budget plan for 2023 related to property.

• First-time buyers are provided with a grant of €10,000 over a period of ten years to buy a property the value of which does not exceed €500,000. This is effective for the acquisition of properties as of 1 January 2022
• Interest-free loans will be provided to whoever buys a  property costing a maximum of €225,000 (increased by €50,000) but who cannot afford to pay the 10% deposit.

As announced during last year’s budget, tax incentives in relation to the transfer and acquisition of specific properties will continue to apply for the next two years.

Such incentives consist of no income tax and stamp duty charges on the first €750,000 of the value of the property transferred when such property:

• was constructed more than 20 years ago and has been vacant for more than 7 years; or
• is situated in an Urban Conservation Area; or
• is constructed and finished in accordance with guidelines on quality and aesthetics as stipulated by a new Board that will be established in the first quarter of next year.

The measures to refund part of the VAT incurred on certain eligible expenses will continue to apply.

The stamp duty reduction scheme applicable to first-time buyers, second-time buyers and property acquisitions in Gozo will be extended for a further year.

Source: pwc.com/mt/budget2023

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