IMMOVABLE PROPERTY (DESIGNATION OF SPECIAL AREAS) REGULATIONS

IMMOVABLE PROPERTY

(DESIGNATION OF SPECIAL AREAS)

SUBSIDIARY LEGISLATION 246.02

IMMOVABLE PROPERTY (DESIGNATION OF

SPECIAL AREAS) REGULATIONS

29th September, 2006

LEGAL NOTICE 227 of 2006, as amended by Legal Notices 320 and 411

of 2007, and 82 of 2008.

The title of these regulations is Immovable Property

(Designation of Special Areas) Regulations.

(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

Immovable Property (Acquisition by Non-Residents) Act,

hereinafter referred to as "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.

IMMOVABLE PROPERTY

(DESIGNATION OF SPECIAL AREAS)

(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 subregulation (1), the Minister shall

seek the advice of experts in the respective fields.

(4) Upon approval of the application by the Minister, but prior

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

applicant shall pay a one-time fee of twenty-three thousand euro

(23,000) increased by two euro and thirty-three cents (€2.33) per

square metre of superficial area for any area in excess of ten

thousand square metres (10,000m 2 ).

(1) The Minister may also issue an Order designating an

area as a Special Designated Area in terms of article 2 of the Act if

an application is made in regard to a site, of a superficial area

below 10,000 square metres, which is an extension of and adjacent

to an existing development that has already been granted Special

Designated Area status in virtue of the provisions of regulation 2,

or by an Order issued prior to the coming into force of the said

regulation, or in virtue of this regulation.

(2) Prior to issuing such an Order, the Minister shall ensure that

satisfactory evidence is submitted to show that the applicant is the

same person who was granted the original Special Designated Area

status, or an assignee or successor in title of such person; and that

the applicant has abided by all the conditions contained in the

original Order granting Special Designated Area status as well as

with all the conditions contained in these regulations, where

applicable.

(1) The Minister may also issue an Order designating an

area as a Special Designated Area in terms of article 2 of the Act if

an application is made in regard to a site of a superficial area below

10,000 square metres, on which site the applicant has constructed

or plans to construct a minimum of thirty thousand square metres

(30,000m 2 ) of the total floor area.

(2) For the purposes of these regulations, "floor area" means

the amount of floor area within a building determined by the

external measurements of the building, that is including the

thickness of the external walls and half the thickness of the

dividing or party walls, and includes any staircase, lift, shafts,

internal yards, verandahs, terraces, balconies, canopies and other

spaces, and a roof or terrace used for commercial purposes.

(3) Prior to issuing such an Order, the Minister shall ensure that

satisfactory evidence is submitted to show that the applicant has

abided with any applicable conditions contained in these

regulations.

(4) Upon approval of the application by the Minister, but prior

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

applicant shall pay a one-time fee of twenty three thousand euro

(€23,000) increased by two euro and thirty three cents (€ 2.33) per

IMMOVABLE PROPERTY

(DESIGNATION OF SPECIAL AREAS)

square metre of total floor area in excess of thirty thousand square

metres (30,000m 2 ).

The Minister shall keep a separate record showing all

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

C o m m i s s i o n e r o f I n l a n d R e v e n u e ( C a p i t a l Tr a n s f e r D u t y

Department) for the purpose of the Duty of Documents and

Transfers Act.

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

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 twenty-three thousand

euro (23,000) and in the case of a continuing offence, to a further

fine of not less than two hundred and thirty euro (230) and not

exceeding two thousand and three hundred euro (2,300) 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.