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property forsale, to let, malta, fsm
property forsale, to let, malta, fsm

A Brief Overview of the Capital Gains Tax Overhaul Introduced through Budget 2015
(18th November 2014)

Budget 2015 saw the end of the Capital Gains Tax system as we know it – an end to the 7% provisional tax option, and an end to the 12% final tax rate too. Instead, the following system has been outlined through the Budget Speech (2015), and shall be the foundation to the Legal Notice bringing about these amendments as from 01 January 2015:

 

→ Individuals shall have to identify which of their properties constitutes their primary residence, in accordance to conditions and regulations still to be identified by the Legal Notice.

 

→ Individuals who sell their primary residence (as duly identified) after at least 3 years of such residence being owned and occupied by the individuals, shall still benefit from the Capital Gains Tax exemption.

 

→ Individuals who sell their property within 5 years from date of acquisition shall be taxed at 5% on the transfer value,instead of 12%.

 

→ Individuals who sell property which they acquired prior to 01 January 2004 shall be taxed at 10% on the transfer value, instead of 12%.

 

→ The default tax rate for individuals who sell property which they acquired after the 01 January 2014, when no exemption is applicable, shall be of 8% on the transfer value.

 

These amendments DO NOT apply to those who had already registered a promise of sale/transfer by the 17 November 2014, even if the final deed of transfer is to be published after the 01 January 2015.

 

Compiled by Notary Dr Ann Bugeja


property forsale, to let, malta, fsm
property forsale, to let, malta, fsm