Budget 2022: VAT Refund On Refurbishment Works For Buying Old House Vacant For Seven Years
Property buyers who purchase a house built over 20 years ago and which has been vacant for at least seven years will pay no tax on the purchase price and will also receive a VAT refund on any refurbishment works.
The announcement was made by Finance Minister Clyde Caruana during his budget speech this evening.
The minister said the incentive would apply to all property that was situated in an Urban Conservation Area and which was built over 20 years ago and has been vacant for seven years. It will also apply to new properties built in a typical Maltese architectural style.
Anyone qualifying for the scheme will pay no capital gains tax or stamp duty as well as the VAT refund on refurbishment works. There will also be additional incentives for first-time buyers to purchase these properties.
Any property purchased through this scheme can be rented out or converted for commercial purposes, into a boutique hotel, for example, however, owners will not be allowed to split the building up.
Malta has one of the highest rates of home-ownership in the EU but has seen its property market become increasingly more unaffordable for a significant portion of the population.
Government has for this reason announced several schemes aimed at getting more people on the property market.
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