Restoration initiatives launched
Two new schemes tied to the 2012 budget have been launched enticing people to invest in the restoration of property in Urban Conservation Areas (UCA) and scheduled buildings.
Minister for Finance, the Economy and Investment Tonio Fenech explained that these tax incentives are to help stop the urban sprawl. The first initiative is based on development in UCA's. “If someone restores a building to rent out as a residence, he will pay 10% tax on income from rent, whilst if someone is restoring to rent out for commercial use will pay 15% tax on income from rent instead of 35%,” the Minister explained. The total tax benefit shall not exceed the maximum of 50%.of the total amount of eligible expenditure invested in restoration.
The second scheme is aimed developers who specialise in restorations. Developers will receive a tax credit of 20% of eligible costs up to a maximum of €20,000 if it's restoration of a normal building and the tax credit will cover up to 30% of eligible costs up to a maximum of €30,000 if the building is scheduled.
The schemes form part of the ‘investi f’darek’ programme. Applications will be received until the end of 2013, and works must be completed by the end of 2014.
Minister of Tourism, Culture and the Environment Mario de Marco commented; “We need to do all we can to conserve the heart of Maltese architecture”.