The Notarial Council has asked for an urgent meeting with the government.

The Notarial Council yesterday asked the government for an urgent meeting following the “surprising” overhaul of the property taxation system announced in the Budget.

Speaking to Times of Malta, council president Clinton Bellizzi said they were “very surprised” by the announcements, adding that no notaries had ever been consulted about the changes.

“We cannot understand why, despite various meetings and our good relations with the administration, the government never uttered a word to us over these changes.”

Insisting that notaries would have to be the ones to implement the new measures, since they were public officers, Dr Bellizzi said they were seeking urgent talks with the government to see how the new system would be implemented and to obtain clarifications.

The government announced an overhaul of the taxation system on the transfer of property. While at present sellers can either pay 12 per cent tax on the value of a sale or 35 per cent on the gains they declare, the new system will see a discount for developers, who will pay eight per cent tax on the property. At the same time, individuals who do not usually trade in property pay just 6.5 per cent. In the case of property acquired before 2002, the tax payable will be cut from 12 to 10 per cent of the sale. Exemptions on residential property remain in force.

This is one of the changes we need to clarify

Asked to explain how the distinction will be made between developers and individuals, Dr Bellizzi admitted he did not know. “This is one of the changes we need to clarify with the minister,” he said. He also complained about the extension by a further six months of a scheme for first-time buyers, saying the government had ignored a suggestion by the council to announce a cut-off date. This is complicating matters for all those involved because it is putting unnecessary pressure to wrap up pending promises of sale,” he said.

According to the scheme, announced in last year’s Budget, first-time buyers can save about €5,000 in stamp duty.

The Malta Developers Association welcomed “with satisfaction” the Budget, stating it was their idea to lower the taxes payable when selling property. “The Budget confirms the government is giving the property market its due importance,” the MDA said.