Mixed reception for property renovation schemes

A Malta Environment and Planning Authority spokesperson revealed that 216 beneficiaries across 44 localities in Malta and Gozo are receiving assistance to the tune of €687,000, which covers up to 20% of restoration costs on their residential buildings. The financial assistance was capped at the maximum of €5,000 per applicant.

But only two have so far applied to benefit from a parallel scheme to claim exemption from duty on documents upon transfer between heirs.

According to MEPA, this incentive generated over €2.8 million worth of private investment in restoration.

The property renovation scheme 'Investi f'Darek', was launched by Finance Minister Tonio Fenech and Tourism and Culture Minister Mario de Marco on 18 February 2012, and expired in September.

Eligible expenditure that qualified for this grant included the cost of works related to restoration, cleaning and maintenance of the facade, repair or replacement of doors and apertures, repair or replacement of traditional wooden/masonry balconies, paint and plaster works, consolidation and restoration of the internal building structure that includes repair or replacement of 'xorok' and timber/steel beams, arches and 'kilep', reconstruction or maintenance of roofs and wells.

Costs of materials, labour, hire of equipment, professional fees (the latter include architect's fees, specialist consultancy and project management costs capped at maximum rate of 5% of the total restoration costs), as well as MEPA permit fees and other government charges that are directly related to restoration were also eligible for the grant.

But only two applicants have so far applied for a MEPA certificate which would entitle them to subsequently claim exemption from duty on documents upon transfer between heirs.

The aim of this scheme was to facilitate the consolidation of property ownership of privately owned residential Grade 1 and Grade 2 scheduled buildings and private residential buildings within Urban Conservation Areas.

The total amount of exemption for these two applications has not yet been established.

Property owners have until 31 December 2013 to submit the application for exemption for this grant in accordance with the process described in the legal notice. Only one building per applicant is eligible for support under this scheme.

The applicant for the scheme is to apply to MEPA for a certificate.

Such a certificate must be duly filled and endorsed by MEPA and is to be presented by the applicant to the Notary Public nominated by the applicant to effect the deed of transfer or promise of transfer.

The Notary Public is to forward such a certificate together with the other relevant documents related to the deed/promise of transfer to the Capital Transfer Section of the Inland Revenue Department

All residential buildings in any established Urban Conservation area or any property scheduled in grades 1 and 2 is eligible for this scheme.

The incentives under the Investi f'Darek scheme seek to promote investment in the restoration and conservation of private residential buildings scheduled in grades 1 and 2 and such buildings in Urban Conservation Areas.