Property sales hit new record as MDA calls for extension in tax incentives

Government's stamp duty deductions scheme appears to be bearing fruit

As property sales reach another record high, the Malta Developers Association is calling on government to extend its stamp duty and property transfer tax deduction schemes.

"The MDA is pleased to note that the timely proposals it made to government last April, at the onset of the COVID-19 pandemic, for the reduction of both stamp duty as well as property transfer tax resulted in a record-breaking number of promises of sales for April 2021," the associated said in a statement.

According to the MDA, 1,796 promises of sale were carried out in April 2021 with an aggregate property value totalling at almost €400 million.

In 2019, the number of promises of sale stoof at 417 in the same month, its aggregate property value standing at €84.5 million.

With 1430 of these promises of sales were for residential properties, the MDA said that this is down not only to the ever-growing demand in the sector, but also to the fact that the amount of property available on the market remains within buyers' reach.

"The MDA encourages government to keep this positive trend going by extending the time-frame of the reduction in taxes related to property transfer in order to keep achieving excellent economic results due to the ripple effect the industry has on numerous other sectors, including the employment sector."

As part of the economic recovery package announced last June, government reduced the stamp duty for buyers and sellers on promise of sale agreements entered into this year for contracts that had to be concluded by March 2021.