As from 22 February 2021 a levy of 0,4% applies on all disposals of immovable property that are within the current control of the Republic (i.e. both trading-nature and capital-nature disposals).
As from 18 November 2022, the levy applies on all disposals of immovable property as well as disposals of shares of a company which, directly or indirectly, holds immovable property (1).
In cases involving a direct disposal of immovable property, the levy is imposed on the disposal consideration, whereas in cases involving a disposal of shares of a company the levy is imposed on the latest general valuation undertaken by the Department of Land & Surveys.
The obligation for payment of the levy lies with the seller.
The following direct or indirect disposals of immovable property are exempt:
- Debt for asset swaps;
- Qualifying reorganisations; and
- Shares listed on a recognised stock exchange.
Notes:
1. During the period 22 February 2021 – 17 November 2022, different provisions applied with respect to certain aspects of the levy. For example, during this period the levy is applied only on disposals of immovable property itself and disposals of shares of a company which directly held immovable property to the extent that the buyer of the shares assumes control of such company.
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