A property tax scheme is being extended to help the real estate sector.
Finance Minister Tonio Fenech said today that during 2009, the property sector slowed down because of the impact of the international financial crisis.
The minister recalled that in November 2006,the government had carried out an important change in the taxation on the transfer of property whenit introduced a final withholding tax of 12 per cent on the market value of the property in question. With those changes, the government had given the choice between the old system, that is with the normal rates on capital gains when the property in question was transferred within five years from the date of purchase.
After several proposals to Government had decided to extend the period of choice from five to seven years.