The Government’s first-time buyer’s scheme is being extended, with the value of property eligible for a reduced tax to be extended from €175,000 to €200,000, Finance Minister Edward Scicluna announced in his Budget 2021 speech on Monday night.
A reduction on duties on property purchases, announced earlier this year, are being extended to March 2021 for promise-of-sale agreements and until the end of 2021 for the signing of contracts of sale.
As for taxes on property donations, with the first €250,000 of a property’s value being exempt, up from the current €200,000.
Businesses benefit from tax reduction
A 1.5 per cent tax concession on the transfer of businesses is being extended to next year.
To give another boost to small operators, including the self-employed, the Maltese Government will increase the VAT threshold exempt from twenty thousand euros (€ 20,000) to thirty thousand euros (€ 30,000).
“This measure will reduce the red tape for these operators.”
A Malta Enterprise scheme will be launched so that companies that employ less than fifty (50) people undertake projects of innovation.
This scheme will be helping companies to invest in technologies that improve efficiencies and reduction of operating costs.
Furthermore, the scheme will assist companies to seek new markets and to employ qualified people to ensure sustainability of their enterprise. The scheme will be open for a defined period of one year and covering up to 50 per cent up to a maximum of two hundred thousand euros (€ 200,000) per company.
Collaboration with local research institutions and internationalization leads to an increase of thirty-five thousand euros (€ 35,000) in the aid granted.
The following schemes will be strengthened and extended: Micro Invest; the Business Development and Continuity Scheme; the Research & Development 2020 Scheme; R&D Feasibility Study Scheme; the Business Start scheme.
The following schemes, implemented in Gozo, will be extended to next year: The Employment Refund, Teleworking Scheme, schemes in the field of MICE
The Back-Office Employment Refund Scheme and promotional support to Gozitan enterprises operating in a special field of digital innovation, internet technology and in the tourism sector, will be improved to achieve more positive results.