Chamber real estate section encouraged by Budget’s innovative approach

As developers rue Budget, Chamber realtors welcomes change in mindset and the incentives encouraging people to restore and renovate derelict properties.

Chamber - final withholding tax system on residential and commercial rentals is definitely 'a step in the right direction'.
Chamber - final withholding tax system on residential and commercial rentals is definitely 'a step in the right direction'.

The Real Estate Business Section of the Malta Chamber of Commerce said it has been encouraged by Budget 2012's different and innovative approach towards the property sector.

The Chamber real estate section said the Budget had been in line with proposals it put forward together with the Federation of Estate Agents, the Malta Developers Association, the Federation of Building Contractors and the Chamber of Architects. 

The proposals were presented during a Business Breakfast on the State of The Property Industry last October.

The real estate section welcomed the change in mindset and applauded the incentives offered to people or companies that restore or renovate Scheduled and derelict properties in Urban Conservation Areas. "The concept of rewarding investors who are preserving our national heritage is commendable and should be extended further. This is a system already adopted in other European Union countries with great success," the section said.

Speaking on the widening of the permitted use of types of properties in UCAs, while remaining compatible with residential zones, the section said it is an issue which local stakeholders have worked incessantly to convince Government to change and reflect today's needs.

"The introduction of a final withholding tax system on residential and commercial rentals is definitely a step in the right direction, even though it is a small start. This is a change that we have actively promoted and we encourage the Minister to extend it to all residential rentals," it said.

The Section also praised the measure aimed at facilitating the transfer of property between heirs to consolidate ownership and avoid buildings becoming derelict.

More in National