MDA welcomes amendments to final tax on property transfers

The Malta Developers Association welcomes with satisfaction the amendments to the tax on property transfers.

While it was the same MDA that worked and insisted that the reform be made to the final tax on property transfers, the MDA still continued to work so that some further fine tuning will be done due to the need for social justice to be achieved – as in the case of couples who end their engagement and are constrained to sell their first property.

Therefore, the MDA welcomes with satisfaction the Government’s amendments that became applicable from January 1 of this year. In this way, in these genuine cases, the tax is 2% instead of 5%. Apart from this, now there are circumstances where individuals or companies have to pay a lower rate of 5% instead of 8% as was implemented initially.

In this way, investors who would need to sell their property within five years after it was acquired and would not have developed it, will pay at the lower rate. This was a change the MDA worked for with the authorities concerned.

While the MDA also accepts with satisfaction the incentive of a lower rate of 3.5% specifically on the sale of property in Valletta so that Valletta V18 will be a success, the MDA insists that a similar incentive should be extended to the island of Gozo.

All this work by the MDA is evidence of how much it is seeking to safeguard everyone’s interest in a holistic way and in the interest of the whole country.

The MDA is convinced that, with this reform tax on the sale of property, the property market will continue to strengthen and help the country’s economy to continue to grow.