Dominic,

You have the figures correct it is best to do the correct figures from the start
or you could be subject to a big CGT bill when you come to sell.

CGT is only 15% if you become a permanent resident and it is nil after you've
lived in the property for over 3 years.

My husband is an investment adviser who specialises in expatriate financial
affairs so if have any further question, please ask.

Regards
Rosie

dominicmcgrath <dom@...> wrote:

Hi all,

I looking at buying a house in Malta but still confused by one
point, maybe someone can clarify.

It seems you pay stamp duty at 5% of the 'official' value of the
house purchase price. the developer seems to want to 'help you' by
saying you can register the property value at a much lower value
thereby you pay less stamp duty and he pays less tax. Everybody's
happy it seems until you come to sell the house. If you are non-
resident you are subject to capital gains tax at 35% of the
difference between the 'official' purchase price and the sale price.

An example would be buy at real price 200,000 and official price
200,000, you pay 10,000 stamp duty. If you sell for 250,000 you pay
17,500 CGT. So in all you paid 27,500 in taxes.

On the other hand if you officially register the price at 100,000
(as my developer is suggesting!) you pay 5,000 stamp duty but pay
35,000 in total & 40,000 taxes.

Are my figures and logic correct or am I missing something? It seems
it is better to register the official price as high as possible. Is
there some way around the CGT.

thanks for any tips

Dominic






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