Selling PropertyCapital Gains Tax Tax on capital gains may be charged on the sale of the immovable property. If the property is sold within 5 years from date of acquisition, the vendor has the option to choose to be taxed: (1) a capital gains tax based on gains realised after taking into consideration the cost of purchase and sale, as well as any improvements carried out on the property or (2) a final withholding tax equivalent to 12% of the sale price of the immovable property. If the property has been owned by the vendor for a period exceeding 5 years, Capital Gains Tax is charged at a final withholding tax rate of 12% of the sale price of the immovable property. |
Capital gains tax is not charged when the property being transferred has been the owner’s own residence for at least 3 consecutive years immediately preceding the date of transfer and has been disposed of within 12 months of vacating the property. Capital gains tax on the sale of the property acquired through inheritance (Causa Mortis) is charged at the rate of 12% on the excess of the transfer value over the acquisition value as declared in the deed of Causa Mortis. If the property was inherited before the 25th November 1992, the rate of tax will be equivalent to 7% of the transfer value. In cases where Capital Gains may be due, we may with the assistance of our Tax Consultants apply to the Commissioner of Inland Revenue for a reduction in the tax due, through the submission of the relative tax return and a detailed account of all expenses incurred in the acquisition and sale of the property. |
It's no secret that property continues to be the best possible investment you can make. Whether you decide to build, renovate, buy-to-let, or just want somewhere to live or holiday in - there is no better place for your money.
Buying property to rent is a fast becoming investment prospect, making more property available to rent. On-Site is capitalising from this situation and is increasing its listings in this area.
So if you are a foreigner intending to purchase a property in Malta, and wish to get the feel of the island before making your move, you can opt to rent a property for a short or long let until you think you are ready to take a decision.
Our personnel from the letting department can help you decide on what type of property is ideal for your requirements. On-Site offers a reasonable choice of properties mainly in the South part of the island, especially Marsascala, a seaside resort fairly unspoiled by developers.
Once you have decided on the property you would like to rent, our Letting Specialists will draw up a tenancy agreement which is agreeable to both you and the Landlord. The length of the tenancy agreement can vary from 7 days to 3 months on short-let agreements and more than 3 months for long-term agreements.
Most properties offered for letting will include all furniture and fittings and are normally fully equipped with appliances and linen. Rental rates are rather reasonable, and maid, handyman and gardening services may also be included and may also be incorporated into the rental agreement if so desired.
Water and electricity consumption are included in the rental if on holiday let. In the case of long lets (over 3 months), these expenses are borne by the lessee on a consumption basis.
On signing of the letting agreement, a deposit is lodged with the property owner/lessor; usually equivalent to one month's rent. This will be held on account and will be returned at the end of the tenancy period, deducting any damages or pending utility bills which may be due. The deposit is refunded to the lessee upon the termination date of the lease or offset against any pending bills or damages to the inventory as agreed between the parties.
For more holiday lets enquiries email : info@on-site.com.mt