Budget 2022: Tax relief on purchase of older properties, renovations

Tax waivers will be available for people who buy residential properties built more than 20 years ago but have been vacant for seven years as well as properties in Urban Conservation Areas and new properties built in 'typical Maltese' style.

The scheme is capped up to the first €750,000 of the value of the properties, on which no duties or capital gains tax will be charged. Finance Minister Clyde Caruana said in the budget speech that the measure also applies for properties which are still under  promise of sale agreements.

First-time buyers of such properties will also receive a grant of €15,000. That grant rises to €30,000 for Gozitan couples who buy such properties in Gozo, with a view of encouraging young people to continue to live in Gozo, the minister said.

The measures come into force from Tuesday and will last for three years.

VAT refund on renovation works

Also from Tuesday, people who renovate such properties will get a refund of VAT up to €54,000 on the first €300,000 spent on renovation works. 

While details of the scheme still have to be issued, he said the government is determined to improve the environment, including the village cores. 

In order to benefit from the...