REDEMPTION OF TEMPORARY DIRECTUM DOMINIUM SCHEME AND SUBSEQUENT FULL OWNERSHIP OF RESIDENTIAL GOVERNMENT

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

SUBSIDIARY LEGISLATION 573.18

REDEMPTION OF TEMPORARY DIRECTUM

DOMINIUM SCHEME AND SUBSEQUENT FULL

OWNERSHIP OF RESIDENTIAL GOVERNMENT

PROPERTY REGULATIONS

3rd December, 2025

LEGAL NOTICE 277 of 2025.

(1)

The title of these regulations is the Redemption of

Temporary Directum Dominium Scheme and Subsequent Full

Ownership of Residential Government Property Regulations.

(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

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

(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 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

shall be a person or legal entity who

(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

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

(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

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

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

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

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

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

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 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

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

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

Concessions Regulations.

(7)

The minimum amount payable by the applicant

following the submission of the application 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 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 and garages and, or parking spaces for residential purposes shall

be eligible for redemption as prescribed by these regulations. The

applicant shall submit the plans of the proposed or approved

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

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

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

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

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;

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

(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

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

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

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,

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

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

01

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

30. 01 to

40. 01 to

50. 01 to

60. 01 to

70. 01 to 10000

80. 01 to 11000

90. 01 to 12000

100. 01 to 14000

110. 0 to 15000

01

sa

U SJIEDA SĦIĦA SUSSEGWENTI TA’ PROPRJETAJIET

RESIDENZJALI TAL-GVERN

40. 01 sa

50. 01 sa

60. 01 sa

70. 01 sa 10000

80. 01 sa 11000

90. 01 sa 12000

100. 01 sa 14000

110. 0 sa 15000

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

to

11000

60.01

to

12000

70.01

to

13000

80.01

to

14000

90.01

to

15000

100.01

to

17000

110.0

to

18000

120.01+

19000

€2,000 per garage or parking space

SCHEME AND SUBSEQUENT FULL OWNERSHIP OF

RESIDENTIAL GOVERNMENT PROPERTY

Schedule III

(regulation 10)

Redemption Prices for Applications Submitted with regard to

Type C redemptions

Redemption price per unit or apartment

Redemption price per garage or parking space

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

Amended Certificate of Redemption

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

residential unit

1,000

garage or parking spaces

Type C redemption

The first five (5) residential units

1,000

additional units

garage parking spaces