Government cuts stamp duty on family business transfers to 1.5%

The Government has announced a reduction in stamp duty on the transfer of businesses between family members.

A legal notice will be published which will reduce the stamp duty from 5 per cent to 1.5 per cent in such instances.

The change was a pledge made in the Labour Party’s electoral manifesto, which had underlined that family businesses are the backbone of the Maltese economy.

Youth, Wellbeing and Electoral Programme Implementation Minister Omar Farrugia said the legal notice will also address cases in which a family member dies while a business transfer is still under way, by allowing heirs to benefit from the reduced stamp duty rate.

Just on Monday, the Malta Chamber of Commerce had requested that this change take place. In its pre-budget document, the Malta Chamber issued a proposal for a lower stamp duty to be introduced for business transactions transferred between family members while they are alive, thereby incentivising business succession planning.