Landlords and tenants will not pay capital gains tax on the sale of properties that have been rented out for over a decade, the government has announced. 

In a scheme unveiled on Friday, Housing Minister Roderick Galdes announced that those who have been renting out a property to the same tenants for over a decade and decide to sell it to the tenants, will not pay tax on the first €200,000. The tax will also be waived for the tenants, Galdes said. 

Those who have been renting out a property for over three years but for not more than a decade will only pay 50% of the tax due on the first €200,000. 

The scheme applies to those who rent the property for “affordable rates”, which according to the Housing Authority works out to around 85% or less of the median rental prices. 

It also only applies if the landlord sells the property to the tenant or their children. 

Galdes said the scheme will continue to help ensure “stability” and sends the clear message that the sector can be “affordable”. 

The scheme, which comes into force on Friday, will not be capped and anyone who meets the set criteria is eligible, Galdes said. 

Meanwhile, Housing Authority CEO Leonid McKay said the authority will be implementing the scheme “from the application stage to the issuing of the certificate to be handed to the notary”. 

“We do not want this process to be a lengthy one and we will do our utmost to ensure this. To avoid abuse, we will also communicate with the notarial council so that the notaries will be able to contact the authority to verify the certificates presented by the landlords and tenants,” McKay said. 

Details on the scheme will be published on the Housing Authority’s website. 

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