Malta’s rich architectural and cultural heritage is a cornerstone of its national identity and a key attraction for tourists. To preserve this heritage, the Maltese government has introduced various incentives aimed at encouraging the restoration and maintenance of buildings within Urban Conservation Areas (UCAs). These incentives are designed to support property owners and promote sustainable urban development while preserving the unique historical character of Malta’s towns and cities.

Objectives of Government Incentives for UCAs

The primary goals of the government incentives for UCAs are to:

1. Preserve Historical Structures: Ensure the protection and restoration of historic buildings, maintaining their structural integrity and aesthetic value.
2. Enhance Urban Environments: Improve the visual and functional quality of urban areas, making them more appealing for residents and visitors alike.
3. Encourage Sustainable Practices: Promote the use of eco-friendly materials and methods in restoration projects, aligning with broader environmental sustainability goals.
4. Support Economic Development: Stimulate local economies by creating jobs in construction, conservation, and tourism sectors.

Types of Government Incentives Currently Available for UCAs

The Maltese government offers a range of incentives to support property owners in UCAs, including;

Malta Capital Gains Tax and Stamp Duty Exemption

New homeowners in UCAs can now qualify for an exemption on the first €750,000 of Malta’s Stamp Duty (also known as Malta’s ‘bolla’), as long as the property meets at least one of the following criteria:

• Located within an Urban Conservation Area (UCA) and;
• Built over 20-years-ago and has been vacant for more than 7-years
• Newly built, displaying traditional typical Maltese style and architecture (Developed in conformity with approved criteria as defined by the established guidelines and approved by the Board appointed by the Minister responsible for finance.)

The Malta Capital Gains Tax and Stamp Duty Exemption is available for properties purchased until December 2024.

Property owners may be eligible for tax deductions on expenses related to the restoration and maintenance of buildings within UCAs. These tax incentives help reduce the overall financial burden on owners undertaking conservation projects.

First Time Buyer’s Incentive

First Time Buyers may also qualify for a stamp duty (bolla) exemption on the first €200,000 of the property’s total purchase price. If the property fits is located within a UCA area, built over 20 years ago and vacant over 7 years, or built with traditional Maltese style architecture), another additional grant of up to €15,000 can be used for restoration purposes.

This UCA grant can increase to up to €40,000 if property is located in Gozo.

Grant on Restoration Work – VAT Refund

The Government will reimburse eligible expenditure that is incurred in relation to the restoration and finishing of privately owned residential properties within UCAs, properties that have been built for more than 20-years and have been vacant for more than 7-years, and new properties that are developed in conformity with approved criteria as defined by the established guidelines required.

Up to the 31st of December 2024, all eligible applicants may apply twice on each property for a grant of 18% on the costs of restoration and finishings. This is up to an aggregated maximum of €54,000 for each property.

UCA Certificates

Make sure that your property is eligible to the above grants. Malta’s Environment and Planning Authority issues UCA Certificates to that effect. To find out more about UCA Malta House Schemes, please visit finance.gov.mt or contact us today to help you further.