Developers demand moratorium on stamp duty for first-time buyers in 2014

The Malta Developers Association has made a bold demand for a one-time concession for the year 2014 to those who do not own any property and are buying a property for the first time in their lives, so that they will not pay stamp duty.

The government receives over €90 million in general duty paid on documents, both property and other forms of transactions.

The MDA also called for substantial incentives to encourage the regeneration of village cores (Urban Conservation Areas), which it said were being neglected "at an alarming rate" with the result of a huge lack of interest among developers to invest in these localities.

The MDA said it wanted a substantial reduction in the MEPA tariffs so that houses and properties in these old areas are renovated, even when this involves demolition; removal of Capital Gains Tax on the transfer of property in these localities and a tax of 15% on profits will be paid only after the relevant fiscal receipts are presented which show that VAT has been paid; and that all the village cores should be given fiscal incentives as Special Designated Areas.

It also said all of Gozo should be considered a special designated area.

The MDA also called for incentives so that new buildings would exceed the EU's energy-saving objectives.

The association, whose president and vice-president are Sandro Chetcuti and Michael Falzon, said a system of 15% withholding tax on residential rents should be introduced, with the option of paying the normal tax rate on income.

An important measure proposed was that, as a temporary measure, the Inland Revenue Department should accept the valuations any architect gives to a property so long as that architect is responsible for the valuation they give. A property price index, which is being discussed in the BICC, is yet to be established.

Other measures proposed by the MDA included: a government scheme so that ground rents on its own properties rented out are converted to a freehold property in way that encourages investment on the site within five years;

Minimisation of bureaucracy in land researches in a full process that will see all properties registered with the Land Registry;

A refund on that part of the tax paid on VAT where Capital Gains Tax has been paid at a rate of 12% on the value of the sale; and encouraging the sale of property to foreigners through the Malta Retirement Programme and further marketing of property sales.