‘Hoarding tax’ on abandoned property mooted

New amendments to property laws will allow a faster sale of properties whose owners are not entirely in agreement on the sale of the property.

In the case of inherited properties, the law allows that the sale of a property goes through when at least 51% of the heirs agree on a price – but only 10 years from the date of the inheritance.

“To reduce the phenomenon of vacant properties, we are going to reduce this period from 10 years, to three years for all inherited properties and those that are yet to be bequeathed,” Scicluna said.

The measure would allow heirs unable to agree on the sale of a property, to go through with the sale after three years and only if 51% of the heirs agree to do so.

The law is to be passed by the end of 2015, with the three-year period starting in 2016. The law will allow all properties to be sold under this procedure to be included in the list of land registration areas.

Budget 2016 will also see a reduction in the registration tax from 5% to 2.5% for buildings in Urban Conservation Areas whose contracts are finalised between 1 January and 31 December 2016.

Final withholding tax on the sale of regenerated UCA properties will also be reduced from 8% to 5%.

The government will also launch a consultation process to discuss which sanctions or penalties should be levied on abandoned commercial properties, such as warehouses or showrooms, left undeveloped – a possible kind of hoarding tax.