The stamp duty exemption for first-time buyers on the first €200,000 of a property’s value will be introduced into law to make it permanent, as announced in the upcoming year’s budget.

This measure joins several other housing-related schemes, such as the €10,000 grant over ten years for first-time buyers  which has already benefited more than 7,000 people and the ‘Rent to Assist’ scheme, into which about €12.6 million have been invested so far, helping around 1,300 families. In addition, the conditions of the first-time buyers’ measure will be revised, so that people who previously bought non-residential property will no longer be disqualified, while the Second-Time Buyer scheme will also be extended.

The 10% deposit payment on a home loan under the Housing Authority scheme will also increase from €225,000 to €250,000, providing essential support to those without enough funds to finalize their property purchase. This loan is to be repaid over 25 years, with interest covered by the Housing Authority.

The Equity Sharing scheme will be extended to individuals aged 25 and over, whereas it currently applies only to those over 30 years old.

The fiscal incentives for property apply to those buying or selling a property that has been built for more than 20 years and has been vacant for more than 7 years, or a property located in an Urban Conservation Area (UCA), or newly developed properties that meet approved criteria. 

The fiscal incentives include the exemption from Capital Gains Tax and Stamp Duty on the first €750,000 of the property price, a VAT refund of up to €54,000 on the first €300,000 spent on restoration and finishing works, and a grant of €15,000 in Malta and €40,000 in Gozo for first-time buyers of such properties.

The reduced tax rate of 3.5% on inherited property already being used as a residence by the inheritor will now apply to properties valued up to €400,000, up from the current €200,000 threshold.