Regulations, 2025

L.N. 277 of 2025

GOVERNMENT LANDS ACT

(CAP. 573)

Redemption of Temporary Directum Dominium Scheme and

Subsequent Full Ownership of Residential Government Property

Regulations, 2025

IN EXERCISE of the powers conferred by articles 31(L) and 77

of the Government Lands Act, the Minister responsible for the Lands

Authority and the Minister responsible for justice have made the

following regulations:-

(1) The title of these regulations is the Redemption of

Temporary Directum Dominium Scheme and Subsequent Full

Ownership of Residential Government Property Regulations, 2025.

(2) The scope of these regulations is to create a scheme and

establish the criteria on the basis of which a temporary emphyteutical

concession may be redeemed by eligible applicants.

In these regulations, unless the context otherwise requires

"Act" means the Government Lands Act;

"additional payments" means any other subsequent

redemption amount that the Authority may impose in relation to

the transfer of property in accordance with these regulations;

"applicant" means any natural or legal person currently

recognised as an emphyteuta, or in the process of being

recognised as an emphyteuta by the Authority in accordance with

these regulations;

"Authority" means the Lands Authority established by

article 5 of the Lands Authority Act;

"Minister" means the Minister responsible for the

Authority;

"residential properties" means those properties

(a) originally granted a temporary emphyteutical

concession for residential purposes and are currently still in

use as residences;

(b) originally granted a temporary emphyteutical

concession for the development of one or more residences;

or

(c) originally granted a temporary emphyteutical

concession for non-residential use but have been

developed, or may be developed, for residential use subject

to the provisions of the Amendment or Revocation of a

Condition Imposed in a Contract of a Property Transferred

by the Government, the Lands Authority or Ecclesiastical

Entities by means of a Sale or Emphyteusis Regulations;

"Type A redemption" means a redemption of groundrent of

properties used as the sole and ordinary residence of the

applicant and garages or parking spaces used for residential

purposes which shall be either interconnected with the residence

or fall within the same emphteutical concession;

"Type B redemption" means a redemption of groundrent of

properties that are not considered as the sole and ordinary

residence of the applicant, or garages or parking spaces not

eligible under the terms of Type A redemption of these

regulations;

"Type C redemption" means a redemption of groundrent of

undeveloped land.

(1) The scheme shall be applicable for the redemption of Applicability.

temporary ground rents that are paid by the applicant for properties

that are classified by the Authority as residential properties, as defined

in these regulations.

(2) These regulations shall be applicable to Type A, B and C

redemptions.

The applications shall be submitted by an applicant who Eligibility to

submit

shall be a person or legal entity who

applications.

(a) is recognised or is in the process of being recognised

by the Government as the emphyteuta or the current emphyteuta

of the property; and

(b) shall have no outstanding ground rent payments in

respect of the property

Provided that in cases where the applicant is a legal

entity, applications shall only be considered in terms of

regulations under Types B and C redemptions.

An applicant who holds the property on sub-emphyteusis

shall only qualify if the requisites provided in regulation 4 are satisfied

(a) the applicant is recognised or is in the process of

being recognised as the emphyteuta by the Government and

currently pays the relative ground rent to Government;

(b) in the case where the sub-ground rent has been

redeemed, the applicant shall prove that the sub-ground rent has

been redeemed by the sub-emphyteuta; and

(c) the applicant is applying for the sole and ordinary

residence under Type A redemption

Provided that the emphyteutical term arising from the

original concession and that of the sub-emphyteusis shall expire

on the same day.

All application fees are listed in Schedule IV. Any expenses

relating to the sale or redemption, including the notary, perit or legal

fees shall be borne by the applicant.

These regulations shall not be applicable to the following

properties

(a) properties that have been granted by temporary

emphyteusis for residential purposes where the redemption

mechanism is specified in the terms of the deed of emphyteusis;

(b) properties burdened by a temporary emphyteusis

being used for any commercial purpose;

(c) properties which were or shall be re-developed either

in part or in whole as a commercial development. The

emphyteuta should assign a portion of the ground rent to the

commercial development and assume the responsibility of

payment thereof until the expire of the emphyteutical term;

(d) properties that have been granted by temporary

emphyteutical concession for agricultural purposes.

(1) If the applicant is a natural person who proves to the

satisfaction of the Authority that the property in question shall be used

as a sole and ordinary residence, the redemption shall be effected

according to the provisions of Schedule I.

(2) A property shall be considered to be the sole and ordinary

residence of the applicant principally if the applicant declares under

oath that he has been residing in the property referred to in the

application, for not less than three (3) years prior to the date on which

the application for redemption is submitted and that no other property

has been redeemed under a Type A redemption during the preceding

five (5) years. The Authority may request any additional documents

and information in relation to this requirement.

(3) If the redeemed property is transferred by sale or any other

real title, within the period of fifteen (15) years from the date of

validation of the application for redemption, an additional payment of

three per cent (3%) of the selling price shall be due to the Authority

Provided that the additional payment of three per cent (3%)

shall be paid with the transfer of each individual unit if the redeemed

property has been redeveloped into separate units.

(4) The date of validation of the application shall be the date on

which the application was validated and ready to be processed by the

Authority and such date shall be indicated in the deed of redemption.

(5) Additional payments shall be due only once on the

occurrence of the first transfer following redemption.

(6) The property shall be redeemed subject to the condition

that it shall be used for a residential purpose in accordance with these

regulations and any change in use shall be subject to the provisions of

the Amendment or Revocation of a Condition Imposed in a Contract of S.L. 573.17.

a Property Transferred by the Government, the Lands Authority or

Ecclesiastical Entities by means of a Sale or Emphyteusis Regulations.

(7) Garages and, or parking spaces that form an integral part of

the property that is being redeemed, or fall within the same

emphyteutical concession and are not used for commercial purposes,

shall be redeemed and the rate of a three per cent (3%) additional

payment of the selling price shall also be applicable. If the use of the

garage and, or parking space be changed to a commercial nature, the

provisions of the Amendment or Revocation of a Condition Imposed S.L. 573.17.

in a Contract of a Property Transferred by the Government, the Lands

Authority or Ecclesiastical Entities by means of a Sale or Emphyteusis

Regulations shall apply

Provided that there shall be no distinction based on the date

of the granting of the original concession or on the date of termination

of emphyteusis

Provided further that residential properties with an expired

emphyteutical concession and that qualify under the terms of a Type A

redemption, shall be eligible to apply under the same terms of a Type

A redemption, once the emphyteutical concession has been renewed

under the provisions of the Expired or Expiring Emphyteutical

Concessions Regulations.

(8) The minimum amount payable by the applicant following

an application submitted in accordance with the Expired or Expiring

Emphyteutical Concessions Regulations shall be of one (1) year

ground rent and shall be paid prior to the submission of the application

in terms of these regulations

Provided that any additional payments shall be charged to

the seller on transfers subsequent to the deed of redemption and shall

be collected by the notary publishing the deed of transfer of property.

(1) Any property not eligible under a Type A redemption

may nevertheless be redeemed according to the provisions of Schedule

II.

(2) In the case that the redeemed property is sold or transferred

by a real right during the period of fifteen (15) years from the date of

validation of the application for redemption, an additional payment of

three per cent (3%) of the selling price shall be due to the Authority

Provided that the additional payment of three per cent (3%)

shall be paid with the transfer of each individual unit if the redeemed

property has been redeveloped into separate units.

(3) The date of validation of the application shall be the date on

which the application was validated and ready to be processed by the

Authority, which date shall be indicated in the deed of redemption.

(4) These additional payments shall be due only once on the

occurrence of the first transfer following redemption.

(5) The property shall be redeemed subject to the condition

that it shall be used for a residential purpose in accordance with these

regulations and any change in use shall be subject to the regulations

established by the provisions of the Amendment or Revocation of a

Condition Imposed in a Contract of a Property Transferred by the

Government, the Lands Authority or Ecclesiastical Entities by means

of a Sale or Emphyteusis Regulations.

(6) Garages and, or parking spaces that do not qualify under a

Type A redemption and are not used for commercial purposes, may be

redeemed in accordance with Schedule II and the rate of three per cent

(3%) of the selling price shall also be applicable. Should the use of the

garage and, or parking space be changed to a commercial nature, the

provisions of the Amendment or Revocation of a Condition Imposed S.L. 573.17.

in a Contract of a Property Transferred by the Government, the Lands

Authority or Ecclesiastical Entities by means of a Sale or Emphyteusis

Regulations shall apply

Provided that there shall be no distinction based on the date

of the granting of the original concession or on the expiry date of the

emphyteusis

Provided further that properties with an expired

emphyteutical concession and that qualify under the terms of a Type B

redemption, shall be eligible to apply under the same terms of a Type

B redemption once the emphyteutical concession has been renewed

under the provisions of the Expired or Expiring Emphyteutical S.L. 573.15.

Concessions Regulations.

(7) The minimum amount payable by the applicant following

the submission of the application in accordance with the Expired or S.L. 573.15.

Expiring Emphyteutical Concessions Regulations shall be of one (1)

year ground rent and shall be paid prior to the submission of the

application in accordance with these regulations

Provided that additional payments shall be charged to the

seller on transfers subsequent to the deed of redemption and shall be

collected by the notary publishing the deed of transfer of property.

(1) Undeveloped land to be developed into a unit or more Type C

and garages and, or parking spaces for residential purposes shall be redemption

Conditions for

eligible for redemption as prescribed by these regulations. The redemption

groundrent of

applicant shall submit the plans of the proposed or approved undeveloped

development, and such plans shall form an integral part of the deed of land.

redemption. Following the submission and successful processing of an

application, the Authority shall provide a Certificate of Redemption to

the applicant indicating the properties that were subject to redemption.

(2)

The applicable redemption prices are listed in Schedule III.

(3) When a unit within the development is sold or transferred

by a real right within the period of fifteen (15) years from the date of

validation of the application for redemption, an additional payment of

three per cent (3%) of the selling price shall be due to the Authority.

(4) The properties shall continue to be used for a residential

purpose as prescribed in these regulations with the exception and

exclusion of any part intended for commercial purposes as prescribed

in the definition "residential properties". Any change in use shall be

subject to the provisions of the Amendment or Revocation of a

Condition Imposed in a Contract of a Property Transferred by the

Government, the Lands Authority or Ecclesiastical Entities by means

of a Sale or Emphyteusis Regulations regulating the request for change

in conditions of an emphyteutical concession

Provided that there shall be no distinction based on the date

of the granting of the original concession, or on the date of termination

of emphyteusis

Provided further that residential properties with an expired

emphyteutical concession and that qualify under the terms of a Type C

redemption, shall be eligible to apply under the same terms of a Type

C redemption once the emphyteutical concession has been renewed in

accordance with the provisions of Expired or Expiring Emphyteutical

Concessions Regulations.

(5) The minimum amount payable by the applicant following

the submission of an application in terms of the Expired or Expiring

Emphyteutical Concessions Regulations shall be of one (1) year’s

ground rent and shall be paid prior to the submission of the application

in terms of these regulations

Provided that any additional payments shall be due by the

vendor only once on the first transfer following redemption and shall

be collected by the notary publishing the deed of transfer of property.

(6) Further to the issuing of a certificate of redemption as

provided in sub-regulation (1), should additional development be

proposed, an additional payment of three per cent (3%), apart from the

redemption prices as indicated in sub-regulation (2) corresponding to

the addition of units, garages or parking spaces shall be due to the

Authority

Provided that the imposition of the additional payment

shall remain in effect for a period of fifteen (15) years from the date of

the validation of the original application for redemption, which date

shall be clearly stated in the deed of redemption. A revised Certificate

of Redemption based on the additional plans submitted by the

applicant shall be provided with each Deed of Redemption. Amended

Certificates of Redemption shall be issued subject to an additional

payment of one thousand euro (€1,000) per certificate of redemption

Provided further that should the number of the proposed

residential units, garages or parking spaces be reduced, the applicant

shall not be eligible to claim any refund of the previously paid amount

to the Authority.

The following transfers shall be exempt from subsequent Exemptions

from post-

redemption additional payments

redemption

additional

payments.

(a) transfers in favour of ascendants, descendants or

siblings, provided that the property remains as an ordinary

residence;

(b) transfers in favour of persons with disability duly

registered with the competent entity;

(c) transfers in favour of those applicants who satisfy the

criteria for exemption from duty in relation to their first

immovable property as established in the Exemption of Duty in S.L. 364.12.

terms of the Order;

(d) subsequent redemption transfers of Type A

redemptions only effected by persons over sixty-five (65) years

of age.

(1) Prior to any transfer of property, the vendor shall Conditions

inform the Authority about the transfer and obtain prior consent. Such common

categories.

information and attainment of consent are required on pain of nullity

and the amount due shall be paid on the transfer of property.

(2) When the ground rent is revisable, it is to be revised up to

the date of the validation of the application prior to redemption.

(3) The terms indicated in regulation 8 in relation to the

additional payments following the redemption of the property shall

commence from the date of the validation of the application and the

said date shall be clearly indicated in the contract of redemption.

(4) The plans of the property to be redeemed shall be annexed

to the contract of redemption in order that a clear delineation of the

property to be redeemed shall be clearly identified.

(5)

The application fees are listed in Schedule IV.

(6) The Authority may consider a property as being of high net

value and, or of historical and, or national importance, in which case

these regulations shall not be applicable. In such a case, the application

shall not be considered and any fees paid to the Authority shall be

reimbursed.

An applicant shall have a right of appeal from a decision of

the Authority taken pursuant to these regulations in accordance with

article 57 of the Lands Authority Act.

(1) The Authority shall have the right to reject in its sole

discretion any application submitted to it in accordance with these

Regulations.

(2) The decision by which the Authority denies an application

submitted to it pursuant to these regulations shall be in writing, even if

by electronic means, and shall include the reason which led to the

refusal of the application.

(3) The Authority shall have the right to bring any action

before the Civil Court, First Hall, requesting the rescission of the

emphyteutical concession, issued on the basis of a false declaration,

incorrect information, or resulting from an error, in cases where it

deems that the Authority should have not acceded to the redemption

request in the absence of such false declaration, incorrect information

or error.

(4) The Authority shall not be liable to any form of damage or

compensation in the exercise of its functions in accordance with these

regulations.

(1) Applicants having pending applications for

redemption which were submitted under previous schemes upon the

coming into force of these regulations may opt to transfer their

application in order that they may be regulated in terms of these

regulations at any stage prior to the signing of the deed. Furthermore,

any Type A redemption application shall be subject to a reduction on

the redemption price equivalent to the difference between the two (2)

application fees.

(2) Applicants who have already concluded a contract of

redemption in accordance with previous schemes shall have the right

to carry out subsequent transfers in accordance with the provisions of

these regulations.

(3) Cancellation of hypothecs arising from previous schemes

shall be contingent to the payment of the deposit of the additional

payments resulting from these regulations equivalent to three per cent

(3%) of the selling price.

(4) The notary publishing the deed of the subsequent transfer

shall collect these additional payments.

(5)

Any concluded processes under previous schemes,

including the cancellation of the hypothec shall be excluded from these

regulations.

Schedule I

(regulation 8)

Groundrent Payable and the Corresponding Redemption Prices

for Applications Submitted with regard to Type A redemptions

Euro

Euro

to

5.01

to

10.01

to

to

20. 01

30. 01 to

40. 01 to

50. 01 to

60. 01 to

70. 01 10000 to

80. 01 11000 to

90. 01 12000 to

100. 01 14000 to

110. 0 15000 to

01+

16000

€1,000 per garage or parking space

Note: the garage or parking space must either be interconnected with the residence or

fall within the same emphyteutical concession.

Schedule II

(regulation 9)

Annual groundrent payable and the corresponding redemption

prices for applications submitted with regard to Type B redemptions

which inter alia include: properties used as other residences, vacant

properties, and properties which were granted on a temporary

emphyteutical concession as a single residential unit and that have

already been developed into multiple units.

Euro

Euro

to

5.01

to

10.01

to

20.01

to

30.01

to

40.01

to

50.01

11000

to

60.01

12000

to

70.01

13000

to

80.01

14000

to

90.01

15000

to

100.01

17000

to

110.0

18000

to

120.01+

19000

€2,000 per garage or parking space

Schedule III

(regulation 10)

Redemption Prices for Applications Submitted with regard to

Type C redemptions

Redemption price per unit or apartment

€7,000

Redemption price per garage or parking space

€2,000

-

Original Certificate of Redemption provided by the Authority upon signing of the deed

Amended Certificate of Redemption

€1,000

Schedule IV

(regulation 6)

Application Fees

Categories

Application fees - € per unit or garage

or parking space

Type A redemption

residential unit

garage or parking spaces

Type B redemption

1,000

residential unit

garage or parking spaces

Type C redemption

1,000

The first five (5) residential units

additional units

garage parking spaces

€0.99