Planning and property – Tax relief when purchasing older properties, UCA buildings

Government has announced tax relief measures when purchasing certain types of properties.

Stamp Duty and Capital Gains tax will be removed on the first €750,000 when selling and purchasing one of the following property types: those built more than 20 years ago and which have been vacant for seven years; for properties within the UCA and new properties that are built in typical and traditional Maltese style and architecture.

Aside from this, first-time buyers of these properties will receive a €15,000 grant. Gozitan couples buying such properties in Gozo for the first time will receive a €30,000 grant. These measures are for a period of three years.

People who renovate such properties will be given a grant on the value of the VAT paid up to a maximum of €54,000 for the first €300,000 spent on restoration and finishing expenses. Certain regulations will need to be followed, including that houses cannot be divided.

Government will also extend, for another year, the reduction in stamp duty for first-time buyers, secondtime buyers and the purchasing of property in Gozo, while the existing measures to mitigate the impact of the pandemic on this sector will end in June 2022.

Government also made several announcements regarding the Building and Construction Authority (BCA).

Next year a Bill will be filed regarding what is called Document F that an architect uses to prepare building envelope plans, on the basis of which the engineer would prepare the building services plan. Once the Bill is approved, buildings will be wasting less energy.

Government is committed to introduce the first Building Code in 2022, in terms of demolition, excavation and construction works. It will include third party rights. In order to ensure that the Code will work as it should, the BCA will put forward a legislation through which Construction Project Managers would be present at the workplace to ensure that what was stipulated is being implemented in the most professional way.

The Planning Authority (PA) will introduce an aesthetics policy as well as other measures to encourage a comprehensive, uniform development that respects the urban environment. Aside from this, the PA applied for EU funds to launch a Built Heritage Restoration Scheme, through which new life can be breathed into historic buildings.

• Extension of firsttime and second-time buyers’ scheme

• PA to introduce aesthetics policy