By means of LN 130 of 2021, the Government of Malta has amended the above-mentioned rules, which were originally issued in 2020 after announcing a recovery package with the aim of restoring the economy following the effect of the COVID-19 pandemic
The transfer ‘inter vivos’ of immovable property situated in Malta made on or after the 9th of June 2020 but before the 1st April 2021 was subject to a duty at the rate of Eur1.50 for every Eur100 or part thereof on the first Eur400,000 of the transfer consideration or market value of the property, whichever is the higher. This reduced rate has been extended to transfers made before 1st August 2021. In the case of an acquisition of an undivided share of property, the benefit shall apply only to such portion of Eur400,000 which corresponds pro rata to the share that is acquired.
To benefit from such a reduced rate, all the following conditions must be satisfied:
- The person acquiring the property does not require an AIP permit
- Notice of the final deed in relation to such transfer is given to the Commissioner for Revenue by not later than the 30th April 2021. This has now been extended to the 31st August 2021.
- No relief is claimed under Article 32C of the Duty on Documents and Transfers Act
Where a notice of the relative promise of sale is given to the Commissioner for Revenue before the 1st April 2021 (now extended to before the 1st August 2021), the reduced rate shall also apply in the case of a transfer ‘inter vivos’ of immovable property or any real right over such property made by not later than the 31st December 2021 (now extended by a month to 31 January 2022), provided that the notice of the final deed in relation to such a transfer is given to the Commissioner for Revenue by not later than the 28th February 2022.