Ease Property Tax To Help The Banks, Say Maltese Developers

By ExpatBriefing.com Editorial 08 June, 2012

The Malta Developers Association has reiterated the need for a change to Malta's property tax regime, this time noting the positive impact investment-friendly measures would have on the stability of the nation's banking sector.

Referring to recent concerns expressed by the European Commission on the increase in problematic property loans for the banking sector, the Association suggested that improved tax conditions for purchasers of property would lead to a property market resurgence so that pressure on banks could be eased.

In particular, the Association has said that the capital gains tax option - for the home-seller to opt to pay tax on the actual profits made - should be made available indefinitely. Presently, under rules introduced in 2005, which were subsequently amended in 2006, developers selling real estate within seven years of purchase can opt to pay capital gains tax of 35% or a 12% withholding tax on property sales. After this seven-year period, the 12% tax rate applies.

Further, the Association has recommended that restrictions placed on foreign buyers should be eased, to allow developers to market Maltese real estate investments more widely.

Tags: Expatriates | Tax | Investment | Real-estate Investment | Malta | Property Tax | Banking | Real-estate | Offshore | Offshore Banking | Withholding Tax |

 





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