MDA welcomes Budget 2014 with satisfaction

The Malta Developers Association welcomes with satisfaction the measures announced by government in the Budget speech, which indicate that government is recognising the need for a thrust in the property market while assuring a level playing field in this sector, as well as through efforts aimed at avoiding abuses in taxation.

The measures announced include four that were among the proposals made by the MDA to the government. First and foremost, the introduction of a 15% withholding tax on rents of residential units, while leaving the possibility of these rents being taxed with the normal taxation procedures.

The concession to those who do not own property, and who are purchasing a property for the first time, do so without paying stamp duty.

The end of the system using architects briefed by government to value property for taxation purposes with the Inland Revenue Department accepting valuations made by any architect, so long as the architect is responsible for the valuation.

Another measure is the setting up of an official structure aimed at encouraging the sale of property to foreigners through marketing campaigns abroad.

The MDA also welcomes the proposed pilot project for Valletta so that the country can begin taking steps to rehabilitate and utilise abandoned property in our capital city.