Recent budget of Malta for next year contains a reduction of personal income tax (PIT) brackets, through a rate down on income between €19,500 and €60,000 from 29% to 25%. Those who purchasing their first property they can get tax concession and that will be extended until June 30, 2015. The tax break exempts the first €150,000 of a property purchase from duty.
VAT measures include a VAT refund scheme for non-EU tourists and the introduction of a 5% rate of VAT on sales of e-books, cut from 18%. Additionally, the VAT registration threshold, of €7,000, will be repealed, requiring every business in Malta to register for VAT.
Along with Malta is also to replace the 35% Capital Gain Tax on property transactions with an 8% Final Withholding Tax from first January 2015. It will be applicable to traders and non-traders equally.
