S.L. 364.12 Art. 4Exemption of duty on acquisition of residential property in Gozo.

(1) In the case of a transfer inter vivos of residential property situated in Gozo, the duty otherwise chargeable in terms of the Duty on Documents and Transfers Act shall be chargeable at the rate of two euro (€2.00) for every one hundred euro (€100.00) or part thereof of the amount or value of the consideration for the transfer of the property or the value of the property, whichever is the higher.

Provided that:

(a) this article shall not apply to a transfer where a notice of a promise of sale agreement in relation to that transfer was given in accordance with the provisions of article 3(6) of the Duty on Documents and Transfers Act or of any rules made thereunder before the 18th October 2016;

(b) subject to paragraph (a) and to the other provisions of this article, this article shall only apply where no relief is claimed in accordance with article 32C of the Duty on Documents and Transfers Act and provided that either of the following two conditions is satisfied:

(i) the final deed relative to the said transfer is made by the by the 31st January 2024 and the notice of the said final deed is given to the Commissioner for Tax and Customs by the 31st March 2024; or

(ii) notice is given in accordance with the provisions of article 3(6) of the Duty on Documents and Transfers Act or of any rules made thereunder by the 31st January 2024 of a promise of sale agreement in relation to such transfer;

(c) without prejudice to the provisions of the fourth proviso to this sub-article, a promise of sale agreement shall be deemed as being an agreement in relation to a transfer when all the following conditions are satisfied:

(i) the final deed relative to the said transfer is made in accordance with the same terms and conditions agreed to in the said promise of sale agreement;

(ii) the transfer is made by the same person who appeared on the said promise of sale agreement as the person who has promised to transfer the property in question or his heir; and

(iii) the transfer is made:

(a) to the same person who appeared on the said promise of sale agreement as the person who has promised to acquire the property in question or his heir; or

(b) where the said promise of sale agreement has been assigned to another person or where an agreement of a promise of assignment of the said promise of sale agreement has been concluded, and notice of the said assignment or promise of assignment has been given in accordance with the provisions of article 3(6) of the Duty on Documents and Transfers Act or of any rules made thereunder by the 31st January

2024, to the same person to whom the said promise of sale agreement has been assigned or with whom the agreement of a promise of assignment of the said promise of sale has been concluded, or his heirs;

Provided also that this article shall not apply to acquisitions of property made for the purpose of demolition and the construction of more than one unit, or to acquisitions of property in the course of a trade or business: Provided also that this article shall not apply to acquisitions made by a body of persons: Provided also that where a notice of a promise of sale or transfer relating to a property given to the Commissioner in accordance with the provisions of article 3(6) of the Duty on Documents and Transfers Act or of rules made under that Act before the 18th October 2016 is either cancelled after the said date or expired and, either the said property is transferred to the same person or persons appearing on the said promise of sale which has been cancelled or expired or, another property forming part of the same project or situated within the same building is transferred to the same person or persons appearing on the said promise of sale which has been cancelled or has expired, any of such transfers shall for the purpose of this article be deemed to be transfers in respect of which a notice of a promise of sale or transfer has been given to the Commissioner in accordance with the provisions of article 3(6) of the Duty on Documents and Transfers Act or of rules made under that Act before the 18th October 2016.

(2) For the purposes of this article, "residential property" includes a garage attached to or underlying such residence or a garage situated in the same block of residential apartments of which the residence forms part or a garage of not more than thirty (30) square metres situated within five hundred (500) metres of such residence or block of apartments, and acquired together with such residence on the same deed.

(3) In the case of a transfer of land, the relief granted under this article shall only apply if one residential unit is to be built thereon, and such relief shall be forfeited in the case of a breach of this condition.