Budget 2020: Property

on Tuesday, October 15, 2019

 

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 a 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