The section related to fiscal measures impacting the Property Sector, is always eagerly expected by operators in the sector and also by potential customers, be they first time buyers or others. The measures relating to property announced by the Minister of Finance fall under three categories, namely, regulatory, newly introduced, or improved schemes and extension of current schemes
Authority Regulating the Sector
The announcement that a new Authority regulating the construction industry will be set up as from 2022 was warmly welcomed. This Authority will safeguard health and safety, the environment and be authorised to issue the necessary standards and regulations governing this vibrant industry.
The setting up of a Compensation Fund to provide redress for damages suffered as a result of damages during construction or as a result of such works, is a highly welcomed development that seeks to address a crucial and widespread concern of many stakeholders and the general public.
New or Improved Schemes
The following newly introduced or improved schemes formed part of the 2021 Budget:
- The duty-free portion on a donation of property by parents to their children for residential purposes has been increased to cover values up to €250,000
- The first €200,000 in inheritance of residential property will now be subject to the reduced tax rate of 3.5%
- The value of property exempted from tax for first time buyers has been increased from the current €175,000 to €200,000 – thus capturing a wider net of young beneficiaries.
Extension of Schemes
The reduction of duty on inter-vivos transfers of immoveable property from 5% to 1.5% for the first €400,000 will be renewed on promises of sale agreements registered by 31 March 2021 provided the contract is entered into by the end of 2021.