Tax incentives for the restoration and reuse of scheduled property and properties in urban conservation areas were announced today by Finance Minister Tonio Fenech and Environment Minister Mario de Marco.

The schemes form part of the Investi d'Darek schemes first announced in the budget last year. They are aimed, in particular, at encouraging the restoration of buildings for rental purposes. Such people will have tax on rental revenue reduced to 10% instead of 35% when the property is used for residential purposes.

When a property is rented for commercial purposes, tax will be charged at 15% instead of 35%.

Anybody who buys property, restores it and sells it, will pay final withholding tax of 10% instead of 12%.

Restoration of a property in a UCA for commercial use by the owner will enjoy a tax credit of 20% when the property is not scheduled, and 30% if it is scheduled.

Applications will be received up to the end of next year. Further details and the application forms can be viewed on the Mepa website under the Investi f'darek section.

The incentives are explained by Dr de Marco above.