Extension of duty on documents and transfers measures

The applicability of certain measures providing for exemptions or reduced rates of duty have been extended by an additional year

Extension of measures providing for duty exemptions or reduced rates of duty

30 January 2025

3 min read

Following the Budget Speech by the Minister of Finance for 2025 on 28^th October 2024, the First-time and Second-time Buyers’ Schemes, as well as the incentive for the transfer of family businesses were extended for another year. In addition to this, the old and vacant property scheme and urban conservation area property scheme were also extended through amendments to the Income Tax and Duty on Documents and Transfers on Certain Property Transfer Rules.

Legal Notice 325 of 2024 implements an extension of existing schemes under the DDTA providing for an exemption or reduced rates of duty as follows:

Exemption from duty for first time buyers of immovable property situated in Malta has been extended to cover transfers of property made up to 31^st December 2025, provided that the required documentation is submitted to the Commissioner for Tax and Customs by 28^th February 2026.
The measure providing for a refund of the duty paid on the first €86,000 upon acquisitions by individuals of the second immovable property to be used as sole residence within 12 months from transferring their current residential property has been extended to cover acquisitions made up to 31^st December 2025, provided that the required notice is submitted to the Commissioner for Tax and Customs on or before 28^th February 2026.
The reduced rate of duty of €1.50 on every €100 or part thereof on the transfer by gratuitous title of marketable securities and immoveable property used in a family business made by an individual to certain family members was extended to cover transfers made up to 31^st December 2025, provided that the required notice in terms of the Duty on Documents and Transfers Act is submitted to the Commissioner for Tax and Customs on or before 31^st December 2025.

Legal Notice 363 of 2024 amends specific provisions within the Relief from Income Tax and Duty on Documents and Transfers on Certain Property Transfer Rules as follows:

The exemption from income tax and duty provided for on the first Euro 750,000 of the transfer value on the transfer of vacant properties or properties situated within an urban conservation area has been extended to transfers made up to 31^st December 2025. However, for the purpose of this exemption:
The transfer of immovable property intended for the storage of goods or materials will no longer be eligible for the said income tax or duty relief as from 1^st January 2025.
As from 1^st January 2025, relief from income tax and duty is allowed in the case of transfers of garages, only if the said garage is transferred by means of the same deed together with the residential property and to the same person to whom such residential property is transferred, and the garage is attached to or underlying that residential property, or in the same block of apartments as the residential property, or a garage situated within 500 meters of such residential property or block of apartments and the garage does not exceed 30 square meters.
The measure providing for an income tax and duty relief on the first Euro 750,000 of the transfer value of a transfer of property intended for development with traditional Maltese features has been extended to transfers made up to 31^st December 2025, provided the required documents are submitted by 31^st January 2026.