News

25 May 2012

String of tax incentives to boost growth

 String of tax incentives to boost growth

Published on May 25, 2012

THE HOUSE of Representatives yesterday passed a string of tax incentives aimed at boosting business activity and attracting foreign investments on the island.

Among others, income tax laws have been amended so that a 5 per cent VAT paid on homes, intended as primary and permanent residences, is extended to purchases by non-EU nationals.

Aircraft imports will be exempted from VAT provided the aircraft is not used by airlines for the purpose of transporting passengers for a fee, where the importer is subject to tax and carries out the import for business purposes, and where the aircraft is imported from a non-EU country.

Other measures provide for decreased fees for copyright acquisition, trademarks and patents.

Parliament also extended the period for reduced property transfer fees until December 31 of this year. 

The scheme came into effect in December of 2011 and was slated to remain in force for a period of six months. Lawmakers decided to extend the period for another six months yesterday.

Under the scheme, if you pay VAT on your house purchase, you’ll pay no transfer fee at all and if you are eligible to pay VAT on your purchase, your property transfer fee will be reduced by 50 per cent.