Developers welcome positive reaction to its proposals

MDA satisfied government acknowledged its proposals on withholding tax on property tax.

The Malta Developers Association has expressed its satisfaction with Budget 2013, saying government had given importance to the property sector as one of the main pillars of the Maltese economy.

"MDA is pleased to note that government is proposing to take steps about the two most pressing problems in connection with taxation that are currently seriously hindering the sale of property. These concern the issue on the 12% withholding tax on the selling price and the issue regarding property valuations made by government-appointed architects after the deed of sale," the MDA said.

The MDA said the solutions to these two problems were among a list of steps suggested to government in order to address the stagnation in the property market - proposals submitted in writing as well as during negotiations during meetings the finance minister.

"MDA is satisfied that the government has acknowledged that its proposals were justified and made sense, to the extent that in the Budget it has announced important steps so that its proposals are positively accepted.

"While appreciating that the raising of the ceiling up to which first-time buyers pay 3.5% stamp duty is a positive step, MDA feels that it would have been better if this stamp duty were completely removed in the case of those who are genuinely buying property for the first time."