MALTA BUDGET 2022

Malta Budget 2022 Property Related Measures

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Stamp Duty and Final Withholding Tax for buyers and vendors respectively, will be waived on the first €750,000 if the property purchased was built more than 20 years ago and has been vacant for at least seven years: if the property is situated within an Urban Conservation Area (UCA); if the property has been recently constructed to reflect traditional Maltese architecture and design.

properties in malta

First-time buyers who acquire a 20 year+ vacant property, a property situated in UCA or a newly built house using traditional Maltese architecture, will be entitled to receive a grant of €15,000 if the property is in Malta and €30,000 if the property is in Gozo. These measures will apply for all final deeds signed by 11th October 2024.

properties in malta

With effect from 12 October 2021, property owners can also claim a refund of VAT up to a maximum of €54,000 (applicable on the first €300,000) when restoration a vacant property or a property situated within UCA.

FAMILY PHOTO

Individuals who sell their home to acquire another residential property are eligible to a refund on stamp duty of up to €3,000 (or €5,000 for persons with special needs) provided that they do not own any other property at the time. This measure has been extended until the end of 2022.

couple holding keys

Stamp duty exemption for first time buyers on the first €200,000 has been extended until the end of 2022. This is equivalent to a maximum saving of €7,000.

gozo

If one purchases a property in Gozo before the end of 2022, the stamp duty will be reduced from 5% to 2%. Note until June 2022, the stamp duty will be reduced to 1.5% on the first 400,000euro.

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The reduction of Final Withholding Tax to a maximum of 5% on the first €400,000 of the transfer value will expire in June 2022.

Other Measures

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ENVIRONMENT

  • Marsascala is set to get a woodland “bigger than Buskett”, with 40,000 indigenous trees to be planted at the Inwadar national park
  • The Pace Grasso stadium in Paola will be transformed into a 12,000 square metre community open space, where 165 trees, 2,500 shrubs and 1,500 ornamental plants wills be planted
  • Roofing over of regional road at Santa Venera to be carried forward under public-private partnership
  • Ta’Qali national park to have more than 60 football pitches’ worth of open space, 60,000 trees and 86,000 square metres of ‘landscaping’
  • Plans for carbon trading scheme for public and private entities
  • Schemes to encourage purchase of solar panels, water heaters, heat pumps extended
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INDUSTRY AND ECONOMY

  • No new taxes for the fifth consecutive year
  • Additional cost-of-living increases for low-income families
  • Tax refund cheques increased to between €60 and €140, with the highest amounts being paid out to people in lower income brackets
  • Budget deficit to be halved to 5.6% next year as economic recovery picks up after the COVID-19 pandemic blow
  • A €470 million investment in the modernisation of various industrial zones and the creation of new ones that do not take up ODZ land
  • Work to ‘regenerate’ Grand Harbour

PERSONAL TAXES WORKERS

  • Part-time tax rate reduced from 15% to 10%
  • €150 benefit for employees earning less than €20,000 and working unsociable hours
  • Workers in non-managerial positions with an income less than €20,000 will be taxed 15% on the first €10,000 they made from overtime pay
  • A cost-of-living wage raise of €1.75 per week
  • Part-time workers can pay social security contributions on more than one job up to 40 hours a week of employment
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TRANSPORT & INFRASTRACTURE

  • Free public transport for all from October 1, 2022
  • Maximum grants on electric vehicles increased from €9,000 to €12,000
  • A five-year exemption on license fees for electric vehicles has been extended
  • Electric vehicles will remain exempt from registration tax
  • 1,200 charging points for electric vehicles to be installed in next three years
  • Extensive roads programme will be continued, but no new infrastructure projects will take place
  • Works will continue on the airport road traffic intersection project and Mrieħel bypass, including “extensive tree-planting”
  • VAT refunds for bicycles and electric bikes continue
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BUSINESS, ARTS, & SPORTS

  • Pledge to attract start-ups to Malta by offering ‘start-up visa’
  • Anyone passing on family business to relative will pay 1.5% stamp duty, down from 5%
  • New agency to regenerate tourist zones, focusing on St Paul’s Bay, Buġibba, Qawra and Xemxija.
  • Artists will be taxed at 7.5% from next year
  • €3 million worth of funds set up for artistic events to counteract COVID-19 and other unexpected restrictions
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PARENTS & DISABILITY

  • Free childcare services will be extended to evenings and weekends for people working shifts
  • Threshold for in-work benefits paid to parents who have children under the age of 23 increase to couples with a joint income of up to €50,000, up from the previous €35,000
  • For couples where only one of the parents is employed, the threshold is raised from €26,000 to €35,000, while the threshold for single parents is raised from €23,000 to €35,000 per annum
  • A grant given to new parents that currently stands at €300 will be increased to €400
  • Grant for parents who quit work to take care of a disabled child over the age of 16 will be raised from €300 to €500
  • Investment in autism units, Braille machines and occupational therapy in schools

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