GRTU urges government to shore up property market

The GRTU has urged the government to ensure that there is no collapse of the property market because that would be detrimental to the economy and house owners.

In suggestions ahead of the Budget, the GRTU said that bad planning had led to an oversupply of ordinary apartments, even in prestigious areas.

With more than 80 percent of the Maltese owning their home, should the value of property fall drastically, families would suffer a devaluation of their main asset, the chamber said.

"Property sales have become much more difficult to achieve, and investors are losing confidence in the property market, especially with the amount of taxation they are enduring.

"Government action is required to ensue that the available properties on the market reach buyers at affordable prices and there is no collapse of this sector.

"It is in the government's interest that property sales recover as this would leave better revenue," the GRTU said.

It suggested that first-time buyers should be granted a one year concession during which they would not be charged stamp duty on property valued under €120,000.

There should also be a 12% final withholding tax instead of 35% on transfers to third parties still on convenium.

The GRTU said that since property owners were currently not viewing the leasing of property as a feasible option due to the 35% tax, it proposed a 5% tax on residential property and 15 percent on commercial properties.

Furthermore, foreigners should be allowed to invest in more than one property.