Matthew Nicholas Borg - Notary Public and Commissioner for Oaths

REMINDER:

🏠 If you're thinking about buying property - now is the time to act! 🏠

The Government's scheme to enter into Promise of Sale agreements for reduced rates on Duty on Documents (Stamp Duty, Purchasers' Tax) at the rate of 1.5%, and Property Transfer Tax (Sellers' Tax) at the rate of 5%, both on the value of the first €400,000 of a property, expires on 31st March, 2021!

Those Promise of Sale agreements registered before or on 31st March, 2021 may have their final contracts signed until 31st December, 2021.

Any Promise of Sale agreements registered on or after 1st April, 2021 will attract normal rates of duty on documents or taxation.

Contact your notary should you require further assistance or advice.

The recent Budget measures as announced by the Government see the extension of various schemes already introduced in the past:

- First Time Buyers scheme extended from €175,000 to €200,000;

- Stamp duty rate of 1.5% and property transfer tax rate of 5% on the value of the first €400,000 of a property extended to all contracts of sale signed before 31st December, 2021, provided that promises of sale relative to said sales are signed before 31st March, 2021;

- Tax exempt amount of donations of immovable property extended from €200,000 to €250,000 - with values above that subject to 3.5% tax rate;

- Second time buyers, Gozo and UCA schemes extended accordingly

Should you require any further information, do not hesitate to contact me accordingly.

Legal Notices 240/2020 and 241/2020, relative to the payment of Duty on Documents (Stamp Duty) and Property Transfer Tax, were published today. The Legal Notices officialise the Government's position on the stamp duty and property tax to be paid by purchasers and vendors for contracts that occur before April 1, 2021.

Highlights of the legal notices include the following:

1. ALL properties acquired inter vivos by purchasers shall be subject to 1.5% on the value of the first €400,000 of the property. Any stamp duty due over and above this amount will be charged at the normal rates.

Schemes that are currently in existence (such as First Time Buyers and UCA Scheme) can be used in conjunction with this rate of stamp duty. However, donations (under Article 32C of the main Act) are not subject to the said stamp duty rates.

2. ALL properties that were subject to the 8% or 10% rates for Property Transfer Tax shall attract a tax rate of 5%, also up to the value of €400,000. Any tax due over and above this amount will be charged at the normal rates.

These measures are effective 9th June, 2020.

Should you have any queries, do not hesitate to contact me accordingly.

The Government of Malta has today introduced various fiscal measures aimed at incentivising the property market. Below please find a summary of said measures:

1. Duty on Documents (stamp duty) on properties up to €400,000 shall be charged at 1.5% until March 2021. If one is eligible for the First Time Buyer scheme, this can be used in conjunction with the new stamp duty rate.

2. The definition of a 'First Time Buyer' is being extended to incorporate those who purchased a property before 2013 and could not avail themselves of this scheme.

3. Final withholding tax is being reduced from 8% to 5%.

More information will be posted when this is officialised by the Government, either by means of a notice from the Commissioner of Inland Revenue, or through a Legal Notice that is published.

The Central Bank has postponed tougher directives relative to the purchase of a second property to 1 July, 2021. Therefore, the deposit required relative to the purchase of a second property remains pegged at 15% till then.

Central Bank postpones tougher conditions for borrowers to buy second home The Central Bank has postponed, by a year, measures which had raised the bar for those wishing to borrow in order to buy a second home. In a statement on Monday, the bank said that in view of the negative impact of COVID-19 on the real estate market, it had postponed by a year amendments to a...

Good morning to everybody :)

Clients are informed that as per Legal Notices 203/2020 and 207/2020, the suspension of legal timeframes relative to Promise of Sale agreements shall no longer be in effect from today, 22nd May, 2020.

All prescriptive periods relative to Promise of Sale agreements shall recommence effective 11th June, 2020, when the 20 day transitory period allowed by law elapses.

Should you have any further questions, feel free to send me a private message.

The general public is informed that prior measures taken to safeguard individuals' rights regarding promise of sale agreements and other notarial related deadlines have been been amended as per a Legal Notice issued by the Government, effective yesterday.

Herewith, all promise of sale agreements and legal terms imposed on the Notary by law have been suspended effective 16th March, i.e. effective the date of the closure of the Courts of Justice (as per L.N. 61/2020). Such suspended periods shall continue to run until 20 days from the repeal of such order by the Superintendent of Public Health.

Should you require any further clarification, do not hesitate to get in touch.

The full legal notice can be read here:

www.justiceservices.gov.mt

In light of further developments relative to the Coronavirus pandemic, my office shall be CLOSED throughout the coming week and I shall not be taking any appointments.

This notice will be revised on a week by week basis, until the situation becomes clearer.

Nonetheless, I would like to take this opportunity to extend a helping hand to those who require it. Should anyone, in particular the vulnerable, weak and elderly, require emergency notarial services, I am prepared to provide this at no charge, pro bono, throughout these difficult times, and this in order to give peace of mind to this sector of society.

EDIT: REPEALED 17.03.2020

The general public is to note that, in the event that government departments (such as the tax department, Public Registry, Land Registry etc) are to be closed due to the ongoing Coronavirus outbreak, the obligation to register deeds and other agreements in terms of the law within a stipulated timeframe shall be suspended during the closure of the department/s and up to 45 days subsequent to that.

This also applies to promise of sale agreements whose expiration date fall within the said period.

In light of recent developments regarding the Coronavirus outbreak, kindly note that all clients displaying common cold or influenza symptoms, including but not restricted to coughing, runny noses, fever or sore throats, shall be asked to postpone their appointments and visit at a later date.

Furthermore, any individuals arriving from a designated self-quarantine zone shall also be asked to postpone appointments.

I shall currently not be accepting clients displaying such traits, with respect to my own personal well being, as well as that of my friends, family and other clients, until further notice.

Thank you for your cooperation.

Some relevant Budget 2020 measures affecting property:

- First Time Buyers scheme has been extended, with tax exemption now on the first €175,000 (as opposed to €150,000)

- Second Time Buyers and Gozo residential property schemes have been extended

- Transferring a promise of sale agreement to a third party shall be subject to 15% tax (previously, this was treated as Capital Gains Tax and subject to a maximum of 35%)

- If one inherits a property and chooses to live in it, inheritance tax will be charged at 3.5% on the value of the first €175,000

The general public is to kindly note that as of 1st January 2020, tariffs at the Land Registry shall be increased accordingly.

justiceservices.gov.mt