The 2024 budget has introduced several incentives and updates that are set to positively impact Malta’s real estate market. The government has extended various schemes to support first-time and second-time buyers, making property acquisition more accessible.
Incentives for Home Buyers The Stamp Duty Reduction Scheme continues to provide significant relief, reducing tax rates from 8% to 5% and lowering the stamp duty from 5% to 1.5% on the first €200,000 of a property’s value. Additionally, the grant for first-time buyers in Urban Conservation Areas (UCAs) in Gozo has increased to €40,000, although the tax incentive for Gozo properties has been removed, resulting in the stamp duty reverting to 5%.
Extended Benefits The first-time buyers scheme, which offers €10,000 over ten years, has been extended, with an additional €2.2 million allocated. VAT refunds up to €54,000 on renovations and restorations remain available, ensuring equal benefits for both couples and single individuals.
Market Trends In 2024, the real estate market in Malta is seeing a growing demand for properties that accommodate remote work and offer outdoor spaces like gardens and terraces. Areas perceived as cultural hubs are becoming popular among younger buyers and professionals, while senior citizens favor communities with ample amenities.
The commercial real estate sector is also evolving, with a rise in flexible workspaces and mixed-use complexes that combine residential, retail, and recreational spaces. This trend reflects the ongoing adjustments businesses are making post-pandemic.
Overall, the 2024 budget measures and market trends suggest a robust and adaptable real estate sector in Malta, ready to meet the diverse needs of its residents and investors.