MDA welcomes proposed stamp duty relief on parent-to-child property transfers

The Malta Development Association (MDA) has welcomed the proposal to ease stamp duty on the transfer of property from parents to their children.

In an official statement, the MDA said the measure would help families plan how to pass property on to the next generation.

The MDA said the cost of such transfers can be a significant obstacle for parents who wish to provide for their children during their lifetime. Relief specifically targeting transfers from parents to children could reduce this burden and give families greater flexibility.

Earlier in September, the Government announced a reduction in stamp duty on the transfer of businesses between family members. This 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.

The MDA added that the final rules should clearly set out which properties and transfers qualify, how the relief can be claimed, and when it will take effect. Families and the notaries advising them need certainty before making decisions.