Budget 2023: €10,000 grant announced for first-time buyers
Stepping onto the property ladder can seem like a distant dream for young people living in Malta. However, with the latest government-backed financial scheme, buying a first home could be within closer reach than you think.
If you are looking to step onto the property ladder for the first time, or already have done on or after 1 January 2022, you are now eligible for a €10,000 grant over the span of 10 years. The grant will go towards the payment of home loans for properties valued up to €500,000.
Finance and Employment Minister Clyde Caruana also announced that previous schemes related to property purchases will be extended for the next two years, including tax reduction schemes for first-time buyers, second-time buyers and the purchase of property in Gozo.
Not sure how you can benefit? We’ve summarised the property highlights outlined in this year’s budget plan, and the tax incentives that will still apply from last years, below:
- Stamp Duty Exemptions
First time buyers will still be exempt from paying Stamp Duty on the first €200,000. This increases to €750,000 and also extends to Capital Gains Tax when selling and purchasing a qualifying* property.
Property buyers in Gozo will continue to benefit from a reduced stamp duty fee of 2% until the end of 2024.
Vendors looking to sell their home and move into another residential property, without owning any other property at the time, can receive a refund on stamp duty of up to €3,000.
First-time buyer Gozitan couples who purchase qualifying* properties, will continue to receive a grant of €15,000 if the property is in Malta and €30,000 in Gozo.
- Renovation Refunds
The government had announced last year that people who renovate qualifying* properties would receive a grant on the value of the VAT paid up to a maximum of €54,000 for the first €300,000 spent on restoration and finishing expenses. This will also be extended until 2024.
If you’re looking for a fixer-upper, we have a large number of traditional older-style properties to show you. Check out our full, selective portfolio here.
- Future Guidelines
New guidelines will be established and introduced next year relating to the quality and appearance of new properties, so that owners of these properties can also benefit from tax breaks and grants.
Looking to get on the property ladder?
With 2,800 people already benefiting from these schemes, now might be the right time to consider getting on the housing ladder.
In response to the 2023 budget announcement, Founder & CEO Sara Grech comments, ‘There was nothing small about the property measures introduced in this year’s budget, which will undoubtedly be welcomed by those in the process of buying. It is so important for Malta’s economic growth that we continue to encourage new buyers onto the ladder, but we need to ensure that this is being done in a sustainable way”.
So, if you are a first-time buyer or just looking to open the door of opportunity through government incentives, get in touch. We can keep you updated with suitable new properties as they come onto the market and help you start the home buying process.
To read more about Malta’s 2023 budget measures, click here.
*Qualifying Properties: those built more than 20 years ago and which have been vacant for seven years; for properties within the Urban Conservation Area; for new properties that are built in typical and traditional Maltese style and architecture.