Wednesday, 24 January 2018

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Malta's 2018 Budget and How It Affects The Property Market

Written by Posted On Friday, 20 October 2017 07:14

The 2018 Budget was delivered last week and as Most people in Malta expected, it did include a few surprises despite the fact that the overall course chosen by the Government remains the same.

For the 3rd year in a row, the Budget includes an incentive for First-Time buyers. More and more young people, plus of course others who have never bought a place in the past, are given a refund on duty paid when purchasing a residential property in Malta. The maximum amount a person can benefit is 5,000 Euro, which is applicable for the first 150k of a property.

Second-Time buyers stand to benefit also. Everyone selling their first property and buying a second one may receive up to 3,000 Euro refund on tax payable. This initiative has been designed to help young families who need to upgrade their current homes and also older people who don't really need a big place any longer and are more than happy to downgrade to a smaller, more manageable property.

The other big point from Budget 2018 is regulating the rental market. It is fair to say that in the last few years the prices have gone through the roof. Now the Government is forcing landlords to register all rental contracts. It is about time a legal framework is put together in order to protects owners and people renting in Malta.

More and more people will be able to benefit from social housing with the criteria widening and now including people over 65.

The last thing worth mentioning, which does have effect on the property market is the Cash For Passport scheme, also know by its official name - the Individual Investment Program. The IPP is highly controversial and gives foreigners access to Maltese citizenship, considering they do enough to stimulate the economy. That means paying high rent (over 1,500 Euro a month) and buying expensive properties, most often in Sliema and St Julians.

Overall, things are looking good and both the politicians and the people are showing a lot of confidence in the property market in Malta.

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