It pays to restore - Buying an older-type property carries generous benefits
Older properties have a certain charm – they are more spacious, have the kind of vernacular architecture that is a talking point at any dinner, and allow the owners to create their own story through kind restoration. Moreover, older properties contribute to local culture – as they help preserve the unique identity that Malta’s village cores have.
But beyond the nostalgia, culture and identity, buying and restoring an old property also makes financial sense, thanks to the government incentives that are currently on offer for those who want to invest in an older-type property.
One of the more generous incentives is that buyers are exempt from capital gains tax and stamp duty on the first €750,000 of the value of the property, if this is located in an urban conservation area; was built more than 20 years ago and has been vacant for more than seven years; or is newly built in typical and traditional Maltese style and architecture.
First Time Buyer Incentives
First-time buyers are exempted from stamp duty on the first €200,000 on a property’s purchase type – this applies to any type of property, irrespective of location. But when it comes to older-type properties – that is, homes built over 20 years ago and vacant for more than seven years – or new properties built in typical Maltese style and architecture, buyers can also apply for an additional grant of €15,000 to be used for restoration. If the property is in Gozo, the grant goes up to €30,000.
There are other incentives. Current and prospective owners of older-type properties can also benefit from a VAT refund of up to €54,000 on the first €300,000 spent on refurbishment works. Through this scheme, owners can apply for a VAT refund on works, including materials, the hire of equipment, planning permit fees, labour, government charges directly related to finishing and restoration, and professional fees such as project management, architect’s fees and specialist consultancy.
Buying your first property is an exciting time – whether it is a new property or an older-type property – as it is an opportunity to discover things and build dreams. Frank Salt makes it even more thrilling. For first-time buyers, Frank Salt Real Estate has put together a First Time Buyer Pack worth over €15,000. First-time buyers are mostly always on a budget – but having €15,000 worth of vouchers and savings will help first-time buyers save money and furnish their new home.
Our Second Time Buyer Offers
Frank Salt Real Estate also has some generous offers for second-time buyers. In fact, if you are selling your old home and buying a new one at the same time through Frank Salt, you can benefit from up to €1,000 cash back to cover your expenses. Not only that, but Frank Salt will also give you a €500 contribution towards your notarial fees, 50 per cent off your first year of home insurance on the new property, free energy performance certificate if required, and up to 35 per cent off vouchers from leading participating outlets.
Issued by Frank Salt Real Estate Ltd, St Julian’s, Malta | October 2022