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Home Ownership (Encouragement) Act (Cap. 328) Consolidated

HOME OWNERSHIP (ENCOURAGEMENT) [ CAP. 328. 1

CHAPTER 328

HOME OWNERSHIP (ENCOURAGEMENT) ACT

To make provision for the granting of certain incentives for the encouragement of home ownership.

(28th October, 1988)*

ACT XXVIII of 1988, as amended by Legal Notice 424 of 2007.

1. The short title of this Act is the Home Ownership

(Encouragement) Act.

2. In this Act, unless the context otherwise requires -

"beneficiary" means the person to whom any of the incentives referred to in article 3 are granted;
"dwelling-house" has the same meaning assigned to it under the

Housing (Decontrol) Ordinance;

"Housing Authority" means the authority established by article 3 of the Housing Authority Act;
"Housing Secretary" has the same meaning assigned to it by the
Housing Act;
"Minister" means the Minister responsibl e for housing, and includes any Parlia me nt ary Se cre t ary wi th resp on sib i l i t y for housing; and
"usufruct" has the same meaning assigned to it in article 2 of the
Death and Donation Duty Act†.

3. The Housing Authority or the Housing Secretary may make re gu lat i o n s , w i t h th e ap prov al o f t h e Mi ni st er, p r ov id in g for schemes for the encou r agement of ho m e ow nership in Malta, whereby persons are encouraged to acquire a dwelling-house for their own residence by being granted all or any one or more of the following incentives:

(a) relief from the duty chargeable under the Duty on
Documents Act‡;
(b) relief from the duty chargeable under the Death and
Donation Duty Act†;
(c) the right to register the dwelling-house as a decontrolled dwelling-house under the Housing (Decontrol) Ordinance.

Short title. Interpretation.

Cap. 158. Cap. 261. Cap. 125.

Cap. 239. Incentives for

home ownership.

Cap. 294. Cap. 239.

Cap. 158.

4. (1) The grant of any of the incentives under article 3 shall be made and shall be evidenced by a certificate which shall be issued by the Housing Authority or the Housing Secretary, as the case may require.

(2) Except tor the purposes of article 5(b) a certificate issued

Evidence of the grant of incentives. Amended by:

L.N. 424 of 2007.

*See Government Notice No. 716 of the 28th October, 1988.

†Repealed by Act XVI of 1993.

‡Repealed by Act XVII of 1993.

2 CAP. 328.] HOME OWNERSHIP (ENCOURAGEMENT)

Relief from duty on documents. Cap. 294.

Relief from death and donation duty. Amended by:

L.N. 424 of 2007.

Cap. 239.

under subarticle (1) shall have effect only if it is annexed to the deed whereby the dwelling-house to which it refers is acquired.
(3) A certificate issued under subarticle (1) shall contain the full particulars of the beneficiary, a full description of the dwelling- house for the acquisition of which the incentives under this Act are being granted and the speci f ic incen tiv es bein g grant e d in accordance with the scheme.
(4) Without prejudice to any liability under any other law, any person who forg es a certificate pu rp orti ng to be issu ed und er subartic le (1), or who shall knowingly make use of such forged document or of a copy thereof, shall be guilty of an offence and shall, on conviction, be liable to a fine (multa) of two thousand and three hundred and tw enty-nine euro and thirty-seven cents (2,329.37) or to imprisonment for a term not exceeding two years or to both such fine and imprisonment.
5. A relief from duty under the Duty on Documents Act*, may consist in all or in any one or more of the following exemptions from the duties chargeable under the said Act, that is to say:
(a) an exemption from the duty chargeable under Title III of Part III of the said Act, on the deed whereby the dwelling-house which is being acquired under the scheme is transferred to the beneficiary;
(b) an exemption from the duty chargeable under Title IV of Part III of the said Act, on any appraisement or valuation of the dwelling-house which is being acquired under the scheme in connection with -
(i) its transfer to the beneficiary;
(ii) the grant of any loan by any bank or other institution to the beneficiary for the purpose of the acquisition of such dwelling-house;
(c) an exemption from the duty chargeable under Title V of Part III of the said Act, on the receipt for the payment of the price or other consideration for which the dwelling-house which is being acquired under the scheme is transferred to the beneficiary;
and where relief has been so granted the duties aforesaid shall, to the extent of the relief, not be chargeable.
6. (1) Where relief from duty under the Death and Donation Duty Act†, is granted, on the death of the beneficiary, and where th e benefici ary is m a rri ed at th e tim e of t h e acquisiti on of the
dwelling-house, also on the death of the beneficiary’s spouse, no duty shall b e p a yabl e u nder th e said A c t , on acco unt of or in relation to the dwelling-house acquired under the scheme on any of the following:
(a) on the transmission through devolution by law or under a testamentary disposition by universal or

*Repealed by Act XVII of 1993.

†Repealed by Act XVI of 1993.

HOME OWNERSHIP (ENCOURAGEMENT) [ CAP. 328. 3

particular title of the rights of the beneficiary or of the beneficiary’s spouse over the dwelling-house;
(b) on the transmission causa mortis of the usufruct of the dwelling-house or share therein, in favour of the beneficiary or the widow or widower of the beneficiary; and
(c) on the consolidation of the usufruct referred to in paragraph (b) hereof with the nuda proprietas of the dwelling-house on the termination of the usufruct.
(2) The exemption granted under subarticle (1) shall not apply to any part of the value of such dwelling-house in excess of sixteen t housand and t h ree hu ndred and fiv e euro and sixty-o n e cents (16,305.61).
7. Where the right to register the dwelling-house as a decontrolled dwelli ng -h ouse und er th e Ho usin g (D econt ro l) Ordinance, is g ranted, such dw el ling-house shall be cap able of being reg istered as a decon trolled dwelling-house und er and in accordance with article 3(e) of the said Ordinance.

8. The Schemes published by Government Notices numbers

1 27, 128 , 129 and 1 30 in the Governmen t Gazette of the 16t h
February, 1988 shall be deemed to be made by regulations made in
virtue of and according to article 3.

Right to register as a decontrolled dwelling-house. Cap. 158.

Schemes made before the coming into force of this Act.