Flat rate of 15% on Assignments of Rights acquired under a Promise of Sale Extended

REAL ESTATE NEWS

6th January 2022

Flat rate of 15% on Assignments of Rights acquired under a Promise of Sale Extended

In October of 2021 the Maltese Government had announced new tax relief measures pertaining to the property market in Malta as well as extensions to previously implemented relief measures.

In short, these relief measures included a one-year extension for the reduction in stamp duty for those who are first- and second-time buyers, the reduction of tax on the sale of affordable rented properties and tax exemptions on certain historical properties.

All other remaining incentives introduced to mitigate the effects of the pandemic on the property market would be in place until the end of June 2022.

However legal notice 490 of 2021 enacted on the 24th of December will see Subsidiary Legislation 123. 198 enacted on 12 May 2020 entitled - Assignments of Rights acquired under a Promise of Sale Rules wherein the consideration for an assignment to which the rules apply does not exceed one-hundred thousand euro (€100,000), the income derived from that assignment, computed in accordance with rule 4, is subject to a flat rate of 15% - has been extended for another year, up until the 31 December 2022.

For more details on the current Tax relief measures in place click here.

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