2018 Property Market Budget Measures

The following is an update from the Malta Developers Association about new property budget measures being proposed that are attractive to those seeking to purchase property in Malta. The following are the measures announced by Finance Minister Edward Scicluna in the 2018 Budget on 9 October 2017 that affect the property market:

1.  The Nikru biex Nassistu scheme to encourage private property owners to rent their properties to the Housing Authority for 10 years is to remain open throughout 2018. Some 200 applications were received in the first month alone.
2.  The Housing Authority is to set up a scheme offering financial assistance up to €25,000 to private property owners to spend on maintenance and rehabilitation of their properties which they would then rent at favourable rates to the Authority for a 10-year period for use as social housing.
3.  The scheme of social loans to enable people to own their own homes is to be extended to a further 300 applicants.
4. The first-time buyers scheme, through which no Duty on Documents is paid on the first €150,000 spent on a property (enabling these buyers to benefit from a maximum refund of €5,000) is to be extended to 2018.
5.  A new second-time buyers scheme, through which buyers who sell their first residence to buy a second home will receive a refund of a maximum of €3,000 on the Duty on Documents paid to acquire this second home. This refund will be a maximum of €5,000 if the buyers is a disabled person.
6.  More incentives to individuals who buy a property in an Urban Conservation Area (UCA) or a scheduled property in the First or Second Grade. The scheme to half Duty on Documents on property in a UCA from 5% to 2.5% is to be extended to 2018.
7.  Similarly, the incentive to those buying a residence in Gozo to reduce the Duty on Documents from 5% to 2% is to be extended to 2018.
8.  The Individual Investor Programme is to be extended to 2018.

The MDA will be organising itself to debate and press its arguments on the important issue also announced in the budget of the White Paper:

• The Government intends to issue a White Paper on the rental market to create a legal framework that is just both to landlords and tenants. A system needs to be put in place that works both during a cycle of rising prices and in all other economic cycles. Among the proposals are the obligatory registration of rental contracts, which will regulate both by how much and when rental increases can take place for the duration of the contract, minimum rental periods, a Deposit Retention Scheme, and legal revisions making it simpler and faster for landlords to take steps against tenants who do not pay the rent or break the rules.