Question ID : 54
Created on 2007-04-11 at 3:57 AM
Author : Christian Vella [christian@mgimalta.com]
Online URL : http://www.mgimalta.com/phpkb/question.php?ID=54
Our Income Tax Act exempts a transfer of immovable property if this was an individual's own residence for at least three consecutive years before the date of transfer. Nonetheless, in the definition of "own residence", the law makes it clear that the property should have been physically occupied during the three-year period. Additionally, the property has to be sold within 12 months of vacating the premises. If these conditions are met, the transfer and sale of property should be exempt from tax on property transfers and capital gains accordingly.