The government this evening announced fiscal incentives for the conservation and use of grade one and grade two scheduled buildings in urban conservation areas.

Finance Minister Tonio Fenech said there will be an exemption on duty on documents for transfer of ownership between heirs, valid up to the end of 2013, to facilitate the consolidation of ownership.

Individuals who wish to restore their residence will be given a rebate of 20% on expenses, up to €5000.

The government will also launch a scheme to encourage the restoration of buildings by individuals and companies. This will include a reduced final withholding tax of 10% on income from rent of residential properties and 15% for commercial purposes and, for sales, a final withholding tax of 10% or a tax credit of 5% on chargeable income from that transaction.

Firms wishing to restore buildings used by them for commercial purposes will enjoy a 20% tax credit on eligible expenses. This will rise to 30% for grade one and grade two scheduled properties.

Mepa will also broaden the possible uses of such building as long as they were compatible with residential zones.