Malta’s Developers Hail ‘1,000%’ Increase In Rental Income Tax Since Rate Was Lowered To 15%
The government has collected €245 million in tax from rental income since 2014, according to figures tabled in Parliament.
Income tax on rental income was reduced from 35% to 15% that year after a proposal by the Malta Developers Association, which hailed the increased revenue.
“It is a known fact that before this system was introduced on the recommendation of the MDA, the government used to collect very little, if any, revenue from rental income,” the MDA said.
According to the data, while €5.8 million in 2014, the year the tax bracket was changed, it had increased to €57.3 million in 2020.
“In the first year during which this system was used, the government collected €5.7 million, and this kept increasing to €57.3 million by 2020. This means an increase of 1,000%. In total, €245 million in tax has been collected from the rental market and has been used on social projects like the increase in pensions and new roads,” the MDA said.
It said that the statistics showed that when a sector is given the opportunity to regulate itself and “conform with the law, while having a sustainable tax rate, the government, and the people win”.
“The MDA believes in a system whereby business can conform to sustainable rules rather than having unsustainable pressure applied on them, and which leads to better results that everyone gains from”.
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