Economic Development Minister Chris Cardona promised measures for a sustainable revival of the real estate sector when he met the Malta Developers’ Association this morning.

He said the government was committed to the Labour election promises. These included the extension of the period during which sellers would have the option of choosing whether to pay capital gains tax or the 12% sales tax. The PL had also promised to reduce stamp duty on purchases by first-time buyers and the removal of the 5% tax on the transfer of the first residential property acquired by inheritance or donation from the parents.

The government is also planning an optional 15% flat tax rate on income from the hire of residential properties.

Dr Cardona said the system where government architects are sent to make valuations after a property is sold will be discontinued, ending the situation where people face high bills months after properties change hands.

Improvements are also being planned for the permanent residents’ scheme.

Association president Michael Falzon welcomed the plans, noting that many of the proposals had been made by the association itself.