The Maltese government has once again extended the tax reduction scheme on property transfers. Through this scheme, the first €400,000 of a property’s value will be subject to a reduced tax rate of 5% as well as a 1.5% reduction on stamp duty.
First introduced in June 2020 as a temporary measure during the COVID-19 pandemic, the tax reduction scheme has been extended once again to the end of June 2023 due to its high demand.
The current scheme has already benefitted over 88,000 individuals over the past 2 years and is expected to benefit an additional 5,600 promises-of-sale through this expansion.
The extension is applicable to those persons who entered into a promise of sale before 31 December 2021 and the notice of final deed reaches the Commissioner for Revenue by 31 July 2023.
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