Duty on the Acquisition of the Second Property to be used for Own Residence

A new legal notice was published about the Duty on the Acquisition of the Second Immovable Property to be used for Own Residence (Exemption) Order.

This legal notice was published whereby an individual transfers his residential immovable property and acquires another residential immovable property (the 'replacement property') within 12 months from the date of transfer of the replaced property, the duty paid on the first €86,000 of the value of the replacement property shall be refunded, provided that a number of conditions are satisfied.

Primarily that this must be ones’ residence and the property will be replaced (meaning that this apply not when you buy a second property but when you replace your first one).

The individual must not have owned any other residential immovable property acquired through a transfer inter vivos before the acquisition of the replacement property, other than the replaced property in the case where the replacement property is acquired before transferring the replaced property.

In the case of persons who are on the Register of Persons with Disability kept by the Commission for the Rights of Persons with Disability and who are in possession of an identity card issued by the said Commission, and who benefit from any Disability Assistance according to article 27 of the Social Security Act, the duty paid on the first € 150,000 of the value  of the replacement property will be refunded. This even applies to guardians of persons with disabilities.

This order shall apply to acquisitions affected from 10th October 2017 up to 31st December 2018, and the form contained in the First Schedule of the Duty on Documents and Transfers Rules has been delivered to the Commissioner for Revenue on or before 28th February 2019.

Details: http://www.justiceservices.gov.mt/DownloadDocument.aspx?app=lp&itemid=28902&l=1

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