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Property Related Measures from the 2024 Budget

09.07.2024 | News

New budget measures have been announced this week in the Gibraltar Parliament which will impact certain property owners and investors. These are as follows:

New Property Sales Tax

The Government are proposing to introduce a tax purportedly with effect from 1 July 2024 “on the profit or gains derived from property sales where any person holds three or more properties”. There are to be exemptions to this, although the only exemption mentioned at present is in relation to a person’s primary residence. Only a high-level overview on this proposed tax has been provided at present, so we are unable to analyse it further. We will provide an update on this measure once the Bill has been gazetted or tabled in Parliament.

Short Term Lets / Air BNB Properties

The Government will be introducing new regulations to govern short term holiday lets and Air BNBs. It was announced that a fee will need to be paid for registration and that the property will need to be inspected. There is no further information available on this new measure at present. We will provide an update on this measure once the Bill has been gazetted or tabled in Parliament.

Off-Plan Purchases / Sales

The Government will be introducing a 0.5% special stamp duty payable by the seller on the assignment and novation of a purchase agreement in respect of properties being bought before or during their construction (known as Off-Plan Properties). It has not yet been confirmed what consideration this special stamp duty will be payable on. We will provide an update on this measure once the Bill has been gazetted or tabled in Parliament.

First & Second Time Homebuyer’s Allowance

The first and second time homebuyer’s allowance (exempting these purchasers from paying stamp duty on the first £300,000 of the purchase price) will only be available to these persons for properties purchased for under £800,000.

Special Stamp Duty Exemption – Affordable Homes

Effective as from 1st July 2018, the Government introduced a special stamp duty of 7.5% payable by the seller on the sale of a residential property at Beach View Terraces or Mons Calpe Mews within the period of ten years from the date the original purchaser bought the property. The Government have now clarified that, henceforth, this special stamp duty should not apply to sales after these properties have been sold on the open market. This special stamp duty is to only apply to those who are selling after purchasing from the Government (i.e. the first owner).

Downsizing Incentive for Seniors

The Government are looking to implement a “downsizing incentive” for seniors (over 65) which will be the equivalent of he first time home buyer’s allowance for those selling and moving to a smaller property. There is no further information available on this new measure at present. We will provide an update on this measure once the Bill has been gazetted or tabled in Parliament.

If you are concerned about any of the above measures or would like to be kept up to date with any further announcements or information, please do not hesitate to get in contact with the property team by e-mail at property@triay.com to discuss how we may be able to assist you.


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