In their annual search to find the “world’s best place to retire in 2018”. This comprehensive investigation examined 30 countries globally, judging them on a variety of criteria including the cost of living, healthcare, infrastructure, crime, taxes, climate and expat communities to name just a few. Valletta and Malta scored highly across these categories and resulted in an impressive A score with only the Algarve in Portugal receiving a better rating.
In Malta, property prices appear to have increased slightly in 2012, up by an average of 0.5% according to the Central Bank of Malta advertised property price index. Properties for rent and also properties for sale in Malta have increased.
Despite the slight slowdown in business activities, the performance of both the construction and real estate sectors was described as positive in 2012, the Central Bank said in its annual financial stability report.
“The very stable situation in the Maltese property market contrasted sharply with continuous depressed conditions in real estate markets in several euro area countries, notably Ireland, Spain and Greece. The rise in domestic property prices was, however, not sufficient to offset the downward movement in prices that occurred in recent years, particularly in 2008 and 2009,” the Central Bank.
Despite stable property prices, the volume of property sales, both for residential and commercial purposes, declined. The Central Bank said property Was still perceived to be somewhat overpriced for both residential and commercial categories.
The number of units for which permits were issued by the Malta Environment and Planning Authority declined by around 22% in 2012, when compared with the same period a year earlier. “The slowdown in the issue of such permits may reflect the oversupply of property in the real estate market. This may continue to persist, in view of slower growth in mortgage credit and the uncertain economic outlook overseas, which has a negative impact on foreign demand at the high end of the market.”
The Maltese Government announced an ‘Economic Recovery Plan’ as a result of the COVID-19 pandemic that has swept across the world. In addition to the initial announcement, two property-related legal notices were also published on the 15th June that outlined a temporary reduction in the rate of Stamp Duty (for buyers) and Final Withholding Tax (for sellers) on property transfers on the first €400,000 of the price. It stated that Stamp Duty will be reduced from 5% to 1.5% and Final Withholding Tax would be 5% instead of 8%.
These new reduced rates for Maltese citizens will start from 9th June 2020 through to 30th April 2021 with the aim of boosting the Maltese real estate industry which is being affected by the global economic slowdown after the coronavirus outbreak.
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For more information about Stamp Duty and Final Withholding Tax in Malta please contact one of our highly experienced team members via the contact details listed below:
info@remax-malta.com
+356 2015 6800
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