Prime Minister and Labour Party leader Robert Abela has highlighted what he described as the “clear difference” between the Labour Party’s succession law proposals and those presented by the Partit Nazzjonalista during the podcast Isma Dean. He argued that Labour’s measures are aimed at reducing financial burdens on families, while the Opposition’s proposals would create “new and unnecessary burdens.”
Under the Labour proposal, children inheriting a property and making it their ordinary residence would be exempt from paying succession stamp duty, even if the property was not previously the deceased’s main residence. Dr Abela explained that if heirs decide to rent the inherited property instead, they would still declare its value, but the 5% succession tax payment would be postponed until the property is sold. He stated, “we will postpone the payment until the day the property is sold.”
The Prime Minister claimed the PN proposal would lead to higher taxation for heirs. Using a hypothetical case involving a €300,000 inherited property, he said the PN system could result in heirs paying €24,000 in tax, compared to €15,000 under Labour’s proposal. He also announced additional measures, including exemptions for spouses, parents inheriting their children’s homes, and increased tax-free property donations for first-time buyers.
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