During yesterday’s session of parliament, Finance Minister Clyde Caruana presented the country’s budget for 2022.
Malta Budget 2022
The Malta Budget 2022 follows weeks of consultation and discussions, with its motto being ‘The country you wish to leave future generations’. It is set at a time when Malta is slowly yet steadily recovering economically from the effects of the pandemic. Despite the challenges faced, the real GDP is expected to grow by 6.5% in 2022 and to continue to grow steadily until 2024. This augurs well for Malta’s prospects for the upcoming years. With no new taxes being introduced, the Malta Budget for 2022 sets the tone for the upcoming year with a number of new incentives and benefits.
Malta Budget 2022: Tax and Property Purchase
With the scope of regenerating uninhabited Maltese houses, an exemption from property transfers tax (payable by the vendor) and duty on documents (payable by the purchaser) was introduced on the first Eur 750,000 of the purchase price in relation to properties that are more than 20 years old and have been vacant for seven years or more, in UCAs or built in the traditional style. When such properties are purchased by first-time buyers, a grant of €15,000 will be paid (€30,000 for Gozitan first-time buyers of such properties in Gozo) . VAT refunds for the restoration and renovation of qualifying property have also been extended and improved, to help homeowners give new life to traditional Maltese dwellings. Get in touch with our Property Tax Advisor to learn more about Tax and Property Purchase in the Malta Budget 2022.
Malta Budget 2022: Tax Benefits for Businesses
The Finance Minister also introduced in this year's Malta budget a new concept to attract start-ups, in the form of ‘start-up visas’. Malta Enterprise and Community Malta have been entrusted with the development of this program, that is said to attract non-EU entrepreneurs. Moreover, Malta Enterprise will be launching a tax benefit applicable to businesses which invest in eligible projects of that same business or investments in different businesses. Additionally, duty paid on the transfer inter vivos of family businesses to descendants shall be subject to a reduced tax rate of 1.5%.
Malta Budget 2022: Environmental Sector
The environment sector in Malta gets its biggest ever financial boost, as a number of new initiatives are rolled out in this year's Malta budget. A process will be launched to enable a public and private partnership to invest in green projects which create carbon credit. Such credits could be purchased by other public or private bodies to reach their carbon goals. A carbon farming initiative has been unveiled to incentivize land conversion into Agroforestry systems.
Read more on this year's Malta Budget 2023
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