The Prime Minister of Malta, Dr. Robert Abela, has announced that the temporary COVID-19 measure providing for a reduction in the tax and stamp duty rates relative to the transfer of immovable property has been extended by four months, and will now apply to preliminary agreements entered into through the end of July 2021. It was formerly scheduled to end in March 2021.
In order for a preliminary agreement entered into by the July deadline to qualify under the scheme, the final transfer must be made by 31 January 2022.
The measure was initially introduced in June 2020 as a fiscal incentive for prospective property buyers and sellers, forming part of the Government’s Economic Recovery Plan for Malta in response to the Covid-19 pandemic. It provides for a reduction on tax from 8% to 5%, and a reduction in stamp duty from 5% to 1.5%, on the first €400,000 of immovable property transferred.
The extension of the measure is effective following the publication of Legal Notices 129 and 130 of 2021.