Malta tax features of the 2021 Budget

1. The regeneration measures with regards to the transfer inter vivos of immovable property in Malta are being extended, with the deadline being promise of sale agreements registered by not later than 31^st March 2021. These measures are hence the following on the first EUR 400,000 of the immovable property:
   1. Property tax of 5%
   2. Duty on documents of 1.5%
2. VAT exempt threshold has been increased to EUR 30,000 per annum, from EUR 20,000
3. A tax exemption on the profits of compliant voluntary organization having an annual income not exceeding EUR 50,000.
4. The 1.5% reduced rate on duty on documents on certain donations pertaining to family businesses is being extended to 2021.
5. Cost of Living Adjustment set at EUR 1.75
6. Increases in tax refunds between EUR 45 and EUR 85 for persons earning less than EUR 60,000.
7. The exemption on duty for first time buyers of immovable property in Malta is being increased to an exempt value of EUR 200,000 (from EUR 175,000).
8. The reduced rate of duty at 3.5% on the acquisition of residential property in Malta is being extended to the first EUR 200,000 (from EUR 175,000).
9. For the whole of 2021, any profits or gains arising from assignment of rights on immovable properties shall be taxable in full at a final tax rate of 15%
10. Royalties derived by individuals from literary works by virtue of a title on copyrights on that work shall be taxed at a final tax rate of 15% on the gross amount received.
11. The income tax exemption relating to Voluntary Occupational Pension Schemes has increased to EUR 3000 per annum.
12. Income tax exemptions on Third Pillar Pension Schemes are now increased by EUR 1000 to EUR 3000 per annum (as from 2021).

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