MALTA Law and Practice Contributed by: Damien Degiorgio and Ramona Galea, Fenech Farrugia Fiott Legal
to identify the land being acquired, the public purpose for which it is being required, the amount of compensation which the Authority is willing to pay, together with a site plan of the land and a valuation drawn up in terms of the Government Lands Act. • If the acquisition of the land is for posses - sion and use, then the relevant declaration shall indicate the number of years that the Authority intends to keep the land, provided that such number does not exceed ten years. Acquisition rent shall be payable to the per - son entitled to receive or to let and receive the rental on lease of the land affected, or the tutor, curator, administrator, procurator or other representative of the person so entitled. • The Authority shall not later than 14 days following the publication of the declaration, provided that this is physically possible to carry out, attach a copy of the declaration of the site plan upon or near the land which is being acquired. This notice shall also be shown on the notice board of the office of the local council and of the police station in the locality where the land is situated. • If the land being acquired is occupied by any person, the Lands Authority shall by means of a judicial act presented in the register of the Arbitration Board, forward a copy of the declaration and the plan to those persons occupying the land. • Any person interested in the land being acquired may contest the public purpose of the said declaration and demand its cancella - tion before the Arbitration Board by means of an application filed in the registry of the said Board within 50 days from the publication of the said declaration. Once the application is served on the Lands Authority, the latter shall have the right to submit a reply within 20 days from the notification. The Arbitration Board shall set down the application for hearing
without delay, and, after listening to the wit - nesses and the submissions of the parties, it shall pass judgment within the shortest time possible but not any later than two months from the closing date within which the Lands Authority had to file its reply. • Any party aggrieved by the decision given by the Arbitration Board may appeal before the Court of Appeal in its superior jurisdiction by means of an application filed within 20 days from the date of such decision. The Court of Appeal shall set down the cause for hear - ing at a date not later than two months from the date of application. After listening to the parties’ oral submission, the court shall pass judgment on the merits within the shortest time period, which must not be longer than six months from the day that the appeal application was filed and the parties duly notified. 2.10 Taxes Applicable to a Transaction The respective parties must make reference to the legal provisions regulating the tax payable on the purchase and sale of property in Malta, specifically the Income Tax Act, Chapter 123 of the Laws of Malta and the Duty on Documents and Transfers Act, Chapter 364 of the Laws of Malta. The seller is required to pay capital trans - fer taxes on the transfer of any property, whereas the buyer must pay the stamp duty. The tax and stamp duty are, however, dependent on a num - ber of facts such as the relationship of the par - ties, whether the property is subject to transfer exemptions and whether or not the transfer is subject to any incentive measures issued by the government at the time of the transfer. In Malta, the standard rate of stamp duty to be paid by the buyer is 5% whereas the capital gains tax to be paid by the seller is 8%. The parties must pay 20% (out of the aforementioned 5%) stamp duty upon the signing of the “Promise of Sale
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