Another budget measure was carried out for this year – that of sales tax rebates for houses rented at affordable rates – which will come into effect with immediate effect. This was announced by the Minister for Social and Affordable Accommodation Roderick Galdes during a news conference.
Through this measure, owners of properties that have been rented at affordable rates for at least 10 years and who choose to sell the property to the tenants who live in them or to their children who live in the same house, will not pay sales tax, neither by the owner nor by the buyer, up to a value of €200,000.
Likewise, owners of properties that have been rented at affordable rates for at least 3 years but not more than 10 years, and who choose to sell the property to tenants living in that property or to their children, only 50% of the sales tax is paid by the seller and by the buyer on the first €200,000 in value.
The lease of the properties that qualify for this measure as “Affordable Rates” will be linked to the percentage of 85% of the price indicated in the index of the Housing Authority, according to the applicable region, which reflects the average rent price in the respective region and also takes into account the size of the house.
Minister Roderick Galdes said that this is another scheme that is clearly showing the commitment of this government to offer adequate and accessible solutions for everyone and offer concrete help. He reiterated that this incentive will be offering stronger stability to several tenants and help more people become home owners.
He explained how although the scheme itself does not specify that the property must be subject to controlled rents, there are a substantial number of properties subject to what were the pre-1995 rent laws that fall within the criteria of ‘ this scheme, and therefore it is a measure that gives a fair solution to the owners of these properties and much more stability to the tenants. Minister Galdes also emphasized that such a measure continues to promote sustainable models and rewards owners who look long term and offer stability.
The Chief Executive of the Housing Authority Leonid McKay said that the Housing Authority will be operating this scheme from the application phase until the issuance of the certificate through which the owners and the tenants will not pay any tax up to the value of €200,000. In this scheme the owners and tenants will be applying together since the help will be given on the basis of the relationship between them, as well as since both of them will benefit from this initiative .
Photos: DOI/MSAA
