The Government will be making it easier to buy property as well as introducing a major administrative reform in the valuation of property for tax purposes.

Stamp duty (boll) for first time buyers will be reduced.

Reporting on last year’s schemes promoting the sale of property to foreigners, the Finance Minister said that until the end of October 690 properties costing €105 million had been sold to foreigners.

The main property-related measures, which will be implemented in 2013, will be a long-overdue administrative reform in property valuation.

Buyers taking out bank loans will be able to send in the valuation of their property made by their bank’s architect rather than have a government architect make their own valuation.

The valuation is essential because it forms the basis for the stamp duty that has to be paid on the sale of a property.

At a briefing for journalists given just before he announced the Budget for 2013, Mr Fenech said banks had no interest to inflate or reduce the price of the property they would be lending money for and, therefore, the Govern-ment felt comfortable accepting their valuations.

The Government-appointed architects’ valuations over the years drew a lot of criticism, with many people complaining they were arbitrary. Moreover, people whose declared property value is disputed often face a surprise tax bill on top of the taxes they would have already paid.

On the other hand, people who do not obtain a bank loan and whose property is worth more than €250,000 can ask for a valuation by a Government architect to take place before the signing of their contract to establish the stamp duty payable beforehand.

This valuation remains valid for six months from the date of issue.

Other measures aimed at heirs and first-time property buyers were also announced.

As from the start of the New Year, stamp duty on transfer of property from parents to children will be removed.

The stamp duty rate for first-time buyers will remain the same at 3.5 per cent but the ceiling has been increased to €150,000 from the current €116,500.