Immovable Property

L.N. 227 of 2006

IMMOVABLE PROPERTY

(ACQUISITION BY NON-RESIDENTS) ACT

(CAP. 246)

Immovable Property

(Designation of Special Areas) Regulations, 2006

IN exercise of the powers conferred by article 8 of the Immovable

Property (Acquisition by Non-Residents) Act, hereinafter referred to

as “the Act”, the Prime Minister and Minister of Finance has made the

following regulations>-

The title of these regulations is the Immovable Property

(Designation of Special Areas) Regulations, 2006.

(1) The Minister responsible for finance, hereinafter referred

to as “the Minister”, shall only issue an Order designating an area as a

Special Designated Area in terms of article 2 of the Act if satisfactory

evidence is submitted by the applicant to show that>

(a) the superficial land area is not less than ten thousand

square metres (10,000m 2 ) and is wholly owned by the applicant or

held by him in perpetual emphyteusis or temporary emphyteusis

for a period exceeding ninety nine years, not taking into account

the period prior to the date of the application<

(b) the applicant has committed himself to restore historic

structures in the area or to regenerate a depressed urban, commercial

or industrial area<

(c) the development will provide high quality residential,

commercial or industrial property<

(d) the projected development is in harmony with its

surroundings, will be of architectural significance when completed

and the quality of materials and finishing to be used in the project

are of the highest standard<

(e) there is not sufficient available property in other Special

Designated Areas to satisfy current demand<

(f) outline or full development permits for the projected

development have been issued by the Malta Environment and

Planning Authority or such other competent authority<

(g) the applicant has performed a feasibility study, is of good

financial standing and discloses a legitimate source of funds to be

utilised for the project< and

(h) the applicant will retain the management and regular

maintenance of all the area, including the infrastructure and utilities

thereof, intended for public or common use< provided that such

management and maintenance may be delegated to a management

company with a proven track record.

(2) A Special Designated Area shall be defined by reference

to the boundaries set out in the Order and by reference to a site plan

contained in the Order.

(3) In assessing the suitability of the area indicated in the

application and the conformity of the development projected thereon

with the parameters of sub-regulation (1) of this regulation, the Minister

shall seek the advice of experts in the respective fields.

Upon approval of the application by the Minister, but prior to Fee payable.

the designation of the area as a Special Designated Area, the applicant

shall pay a one-time fee of ten thousand liri (Lm10,000) increased by

one lira (Lm1) per square metre of superficial area for any area in excess

of ten thousand square metres (10,000m 2 ).

The Minister shall keep a separate record showing all transfers Minister to keep

record of transfers.

of ownership or other transfers of real rights in Special Designated Areas

and, to this end, every Notary publishing such deed shall indicate whether

the deed relates to property in a Special Designated Area or otherwise,

on the notice submitted to the Commissioner of Inland Revenue (Capital

Transfer Duty Department) for the purpose of the Duty of Documents Cap. 364.

and Transfers Act.

(1) The failure to fulfil any commitment undertaken by the Penalties.

applicant in the application, shall constitute an offence under the Act

and the applicant, or the person or persons responsible for the

management, where the applicant is a juridical person, shall be liable,

on conviction, to a fine not exceeding ten thousand liri (Lm10,000) and

in the case of a continuing offence, to a further fine of not less than one

hundred liri (Lm100) and not exceeding one thousand liri (Lm1,000)

for each day during which the offence continues.

(2) The Minister may, furthermore and without prejudice

to any other remedy or penalty, at any time revoke the Special Designated

Area status of an area by notice published in the Gazette in the event

that>

(a) the applicant has made any false declaration or otherwise

given incorrect or incomplete information or failed to disclose a

material fact which has had, or may have had if disclosed, a bearing

on the approval of the application< or

(b) the applicant has failed to fulfil any of the commitments

undertaken by him in the application within ten years from the

issue of the Order designating the area as a Special Designated

Area< or

(c) the applicant has failed to complete the projected

development within ten years from the issue of the Order

designating the area as a Special Designated Area>

Provided that such revocation shall not be imposed

retroactively and shall not prejudice the Special Designated Area

status of any property in the area which has been validly transferred

to third parties prior to the date of such revocation.

The Immovable Property (Designation of Special Areas)

1993. Regulations, 1993, are hereby revoked.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press