DUTY ON THE ACQUISITION OF THE SECOND IMMOVABLE PROPERTY TO BE USED AS SOLE RESIDENCE (EXEMPTION) ORDER

DUTY ON THE ACQUISITION OF THE SECOND

IMMOVABLE PROPERTY TO BE USED AS SOLE

RESIDENCE (EXEMPTION)

SUBSIDIARY LEGISLATION 364.17

DUTY ON THE ACQUISITION OF THE SECOND

IMMOVABLE PROPERTY TO BE USED AS SOLE

RESIDENCE (EXEMPTION) ORDER

2nd February, 2018

LEGAL NOTICE 39 of 2018, as amended by 223 and 414 of 2018 and

117 and 281 of 2019, 427 of 2020, 460 of 2021, 366 of 2022, 289 of 2023,

325 of 2024 and 283 of 2025.

The title of this order is the Duty on the Acquisition of

the Second Immovable Property to be used as Sole Residence

(Exemption) Order.

Notwithstanding any other provision in the Duty on

Documents and Transfers Act, where an individual transfers his

residential immovable property (hereinafter referred to as the

''replaced property''), and acquires another residential immovable

property (hereinafter referred to as the ''replacement property'') within

twelve (12) months from the date of transfer of the replaced property,

the duty paid on the first eighty-six thousand euro (€86,000) of the

value of the replacement property shall be refunded

Provided that this article shall only apply where all the

following conditions have been satisfied

(a)

the transfer of the replaced property must qualify

for tax relief under article 5A(4)(c) of the Income Tax Act;

(b)

the replaced property must have been acquired by

way of a transfer that qualified for relief under article 32(4)(a)

of the Duty on Documents and Transfers Act;

(c)

the acquisition of the replacement property must

qualify for duty relief under article 32(4)(a) of the Duty on

Documents and Transfers Act. Acquisitions made through a

gratuitous title in accordance with rule 3(2) of the Duty on

Documents and Transfers Rules are excluded;

(d)

if the replaced property had qualified for an

exemption under article 3 of the Exemption of Duty in Terms of

Article 23 Order or under article 32C of the Duty on Documents

and Transfers Act, five (5) years must have elapsed on the date

of acquisition of the replacement property;

(e) * the individual must not have owned any other

residential immovable property acquired through a transfer

inter vivos before the acquisition of the replacement property,

*In force as from 10th October 2017.

DUTY ON THE ACQUISITION OF THE SECOND

IMMOVABLE PROPERTY TO BE USED AS SOLE

RESIDENCE (EXEMPTION)

other than the replaced property. For the purpose of articles 3

and 4, the individual must not own any other residential

immovable property at the time of acquisition of the

replacement property, other than the replaced property. For the

purpose of this sub-article "residential immovable property"

includes also a plot of land or airspace;

(f)

the transfer of the replaced property must be made

within twelve (12) months from the acquisition of the

replacement property.

For the purpose of article 2, in the case of persons who are

on the Register of Persons with Disability kept by the Commission for

the Rights of Persons with Disability set up in terms of the Equal

Opportunities (Persons with Disability) Act, and who are in possession

of an identity card issued by the said Commission, and who benefit

from any Disability Assistance according to article 27 of the Social

Security Act, the duty paid on the first one hundred and fifty thousand

(€150,000) of the value of the replacement property will be euro

refunded.

For the purpose of article 2, in the case of guardians of

persons who are on the Register of Persons with Disability kept by the

Commission for the Rights of Persons with Disability set up in terms of

the Equal Opportunities (Persons with Disability) Act, who reside in

the same household and who are in possession of an identity card

issued by the said Commission, and who benefit from any Disability

Assistance according to article 27 of the Social Security Act, or from

Disabled Child Allowance according to article 77 of the same Act, the

duty paid on the first one hundred and fifty thousand euro (€150,000)

of the value of the replacement property shall be refunded.

The benefit would apply on a pro-rata basis according to

the share of the property being acquired.

The order shall apply to acquisitions affected from the

10th October 2017 up to the 31st December 2026, where the notice

required in terms of the Duty on Documents and Transfers Act and the

Duty on Documents and Transfers Rules has been submitted to the

Commissioner for Revenue on the form or other means provided by the

Commissioner on or before the 28th February 2027.

Claims for refund of duty under this order shall be made

in writing and shall not be considered by the Commissioner if made

after six months from the date of the last contract or from the 2nd

February, 2018 whichever is the latest. The Commissioner will check

eligibility and the person who acquires the property must submit to the

DUTY ON THE ACQUISITION OF THE SECOND

IMMOVABLE PROPERTY TO BE USED AS SOLE

RESIDENCE (EXEMPTION)

Commissioner for Revenue any information, forms and documentation

that the Commissioner for Revenue may require by means of a notice

in writing, within the period specified in the notice which may not be

of less than thirty (30) days.

For the purpose of articles 3 and 4, upon request for

refund there should be submitted a report by an occupational therapist

establishing that the replaced property is not adequate for the person

with disability. The Commissioner for Revenue reserves the right to

confirm such report through an occupational therapist engaged by him.

The relief granted under this order shall be forfeited and

the provisions of article 10 shall apply if any of the provisions of this

order are not satisfied.

When the relief from duty under this order is forfeited as

provided in article 9, the provisions of article 2 shall not apply and the

duty chargeable on the transfer referred to in that article shall be the

duty that would have been chargeable in accordance with the

provisions of the Duty on Documents and Transfers Act had the relief

under this order not been claimed and availed of.