Duty on Documents and Transfers Act (Cap. 364), article 32

32. (1) There shall be charged on every document and on every judgment, decree or order of any court or other lawful authority, whereby any immovab le or any real right over an immovable is transferred to any person, and on every declaratio n made in accordance with article 33 in respect of persons from whom the transfer causa mortis originates who died on or after the 23rd November, 1999, a duty of five euro (5.00) for every one hundred euro (100) or part thereof of the amount or value of the consideration for the transfer of such thing or of the value of such thing, whichever is the higher. (2) Repealed by XI.2000.23. (3) Notwithstanding any other provision of this Act, no duty shall be charged on the transfer of immovable property or marketable securities: (i) between persons who are, o r were formerly, married to each other, when such assets are assigned between them consequent to a consensu al or judicial separation or to a divorce between such persons: Provided that in such circumstances, the term "immovable property" shall also include immovable property owned by a compan y which is fully owned by any or both spouses; or (ii) between persons who are, or were formerly married to each other, on the dissolution of the community of acquests existing between them; or (iii) between persons who are married to each other, whether the community of acquests exists between them or otherwise, on any transfer inter vivos o f t h e ordinary residence or part thereof, of any or both of the spouses; or (iv) on the death of one spouse, on any partition of any property held in common between spouses, whether it is community property or otherwise, between the surviving spouse and the heirs of the d eceased spouse; or Act No. XXVII of 2020. (v) between cohabitants whose cohabitation is enrolled by means of a public deed under the Cohabitation Act, 2020 , when such assets are assigned between them consequent to the dissolution of the cohabitation: Provided that in such circumstances, the term "immovable property" shall also include immovable property owned by a compan y which is fully owned by any or both said cohabitants; Act No. XXVII of 2020. (vi) between cohabitants whose cohabitation is enrolled by means of a public deed under the Cohabitation Act, 2020 , on the dissolution of the community between said cohabitants; Act No. XXVII of 2020. (vii) between cohabitants whose cohabitation is enrolled by means of the public deed under the Cohabitation Act, 2020 , whether the community of assets exists between 16 CAP. 364.] DUTY ON DOCUMENTS AND TRANSFERS them or otherwise, on any transfer inter vivos o f t h e cohabitation home or part thereof, of any or both of the cohabitants; or Act No. XXVII of 2020. (viii) on the death of one of the cohabitants, whose cohabitation is enrolled by means of a public deed under the Cohabitation Act, 2020 , on any partition of any property held in common between the cohabitants, whether it is the community property or otherwise, between the surviving cohabitant and the heirs of the deceased cohabitant. Cap. 246. (4) ( a) Subject to the provisions of paragraphs ( b) and ( d), in the case of a person who does not require a permit by the Minister for the purposes of the Immovable Property (Acquisition by Non-Residents) Act and who acquires, inter vivos , any immovable property or any real right over such pro perty for the purpose of establishing therein or constructing thereon his sole, ordinary residence, or who redeems any groundrent or other burthen imposed on any such property acquired by him by any title inter vivos , duty under this Title in respect of the first two hundred thousand euro (€200,000) or such greater amount as may be prescribed, of the aggregate value of the consideration paid for the acquisition or in the case of a transfer by a gratuitous title which does not qualify for duty relief under article 32C, of the value of such property and for the redemption of such property, shall be charged at the rate of three euro and fifty cents (€3.50) per one hundred euro (€100) or part thereof. Cap. 246. Provided that this paragraph shall not apply to a person who would have required a permit by the Minister for the purposes o f the Immovable Property (Acquisition by Non-Residents) Act had the property acquired not been s ituated in a special designated area. (b) Where such residence is acquired by an emphyteutical or sub-emphyteutical grant, a nd whether or not there is also payable on such deed a ny other consideration, the duty chargeable under this Act shall be reckoned at the rate of three euro and fifty cents (€3.50) for every one hundred euro (€100) or part thereof on the first two hundred thousand euro (€200,000), or such amount as may be prescribed, on the taxable value established in accordance with the provisions of article 40 and any additional taxable value shall incur a duty of five euro (€5) per one hundred euro (€ 100) or part thereof on the said taxable value. (c) Where such property is not fully acquired by such person the amount of the value that shall be charged at the rates specified in this sub-article shall be such amount as is proportionate to two hundred thousand euro (€200,000) or the value of the property (whichever is the less) as the proportion of the share so acquired by such person is to the whole. DUTY ON DOCUMENTS AND TRANSFERS [CAP. 364. 17 (d) Duty relief provided for in paragraph ( a) shall not be available where the pers on acquiring the property owns, at the time of acquisition, any other property in respect of which duty relief has been claimed under paragraph ( a) or article 32C. Th e notary who receives any deed to which this article refers shall record in the deed a declaration by the person so acquiring the immovable that he does not own any other property in respect of which duty relief has been claimed under paragraph (a) or article 32C and that the said property is being acquired by him for the purpose stated in paragraph ( a) and the said notary shall warn the said person of the importance of the truthfulness of such declaration. (e) For the purposes of this article, article 32C, and article 35 "residence" shall also include: (i) a garage attached to or underlying such residence or a garage situated in the same block of residential apartment s of which the residence forms part or a garage of not more than thirty square metres situated within five hundred metres of such residence or block of apartments: Provided that for the purposes of this article and for the purposes of articl e 32C such garage shall also be acquired together with such residence on the same deed: Provided further that for the purposes of article 35, such a garage need not have been previously acquired by the decuius together with such residence on the same deed; (ii) land which the owner has for his own occupation and enjoyment with that residence as its garden or grounds consisting of an area which, regard being had to the size and character of the dwelling house, is required for the reasonable enjoyment of it as a residence; and "ordinary residence" means the principal residence being a dwelling house which is the only or main residence of a person. Any part of the residence which is used exclusively for commercial purposes shall not be considered as "ordinary residence" and this part shall be apportioned on the basis of the area occupied for this purpose as a proportion of the whole area of the relative dwelling house. (5) Where any duty chargeable in respect of any immovable property transferred causa mortis has been paid, or no duty is payable on such transfer, and the notary declares on the relati ve deed that the property in question came to the co-owners throug h a transfer causa mortis and that a complete decl aration, including the property to which the partition refers, has been duly made in accordance with article 33, the duty chargeable under this arti cle on 18 CAP. 364.] DUTY ON DOCUMENTS AND TRANSFERS deeds partitioning such immovable property between co-owners shall not be levied. The notary shall on any such deed give the relevant details of all the decl arations made in accordance wit h article 33. (6)* (a) Notwithstanding the foregoing provisions of this article, where the Commissioner issues a certificate attesting that any immovable or any real right over an immovable is transferred from one company to another company forming part of the same group of companies, and that he is satisfied t hat such requirements or conditions, if any, as may be prescribed by regulations under this Act are fulfilled, he shall, according to the case, either refund the duty or order that no duty shall be chargeable on such a transfer. For the purposes of this sub-article, "a group of companies" shall have the same meaning assigned to it in article 42. (b) The provisions of paragraph ( a) shall only apply where the individual, direct or i ndirect, beneficial owners of the companies referred to in the said paragraph are the same and each such individual holds, directly or indirectly, substantially the same percentage interest in the nominal share capital and voting rights in each of the said companies. For the purpose of this paragraph an individual is deemed to hold substantially the same percentage interest in the nominal share capital and voting rights in each of the said companies where the difference between the percentage interest held in each company does not exceed twenty percent: Provided that where an individual holds, directly or indirectly, less than twenty percent of the nominal share capital and voting rights in only one of the companies referred to in paragraph ( a), such individual shall not be taken into account in determining whether the individual direct or indirect beneficial owners of the companies referred to in paragraph ( a) are the same: P r o v i d e d f u r t h e r t h a t i f m o r e t h a n o n e i n d i v i d u a l holds, directly or indirectly, less than twenty percent of the nominal share capital and voting rights in one of the said companies, the pr eceding proviso shall not apply where together such individuals hold, directly or indirectly, twenty percent or more of the nominal share capital and voting rights in that company: Provided also that the whole of this paragraph shall *this sub-article was originally added by Act XXV of 1995 as ar ticle 32A. DUTY ON DOCUMENTS AND TRANSFERS [CAP. 364. 19 not apply, where the companies referred to in paragraph ( a) are directly or indirectly owned as to eighty percent or more by a company whose securities are listed on a stock exchange recognised by the Commissioner for the pur pose of this provision. (c) Notwithstanding the foregoing provisions of this article, no duty shall be chargeable on a transfer of immovable property by a company to its shareholder in the course of winding up or in the course of a distribution of assets pursuant to a scheme of distribution, where the said shareholder is an individual or his spouse who owns or own, directly or indirectly, not less than 9 5% of the share capital and voting rights of the said company transferring the property as aforesaid and the Commissioner issues a certificate attesting that h e is satisfied that the requirements and conditions under this paragraph are fulfilled: Provided that this paragraph shall only apply and the Commissioner shall only issue a certificate, where all the following conditions have been satisfied: (i) the said shareholder held, directly or indirectly, not less than 95% of the share capital and voting rights of the company transferring the said immovable property for a period exceeding five years immediately preceding the date of the transfer of the prop erty as aforesaid; (ii) the said property consists of any immovable property, including land; (iii) the said immovable property is held as a capital asset by the company and has been so held for a period exceeding five years immediately preceding the date of the transfer of the property as aforesaid. (7) Notwithstanding any other provisions of this Act, no duty shall be chargeable on a transfer of an undivided share of a dw elling house, where the dwelling house was, immediately before the transfer, co-owned by two individuals and the transfer is made by one of the co-owners to the other: Provided further that where on e of the co-owners dies, the provisions of this sub-article shall apply to the transfer of a n undivided share of the dwelling house from the heirs of the deceased co-owner to the oth er co-owner where any duty chargeable in respect of the property transferred causa mortis has been paid, or no duty is payable on such transfer, and the nota ry declares on the relative deed that the property in question cam e to the heirs of the deceased co- owner through a transfer causa mortis and that a complete declaration has been duly made in accordanc e with article 33. The notary shall on any such deed give the rel evant details of all the decl arations made in acco rdance with article 33.' 20 CAP. 364.] DUTY ON DOCUMENTS AND TRANSFERS Provided that this sub-article shall only apply where the co- owners had, for the purposes of sub-article (4)( a), declared in the deed of the acquisition of that property that they had acquired it for the purpose of establishing therein or constructing thereon the ir sole ordinary residence. (8) No duty shall be charged on a deed of partition of immovable property which was acquired by th e co-owners through a transfer inter vivos , or partly through a transfer inter vivos and partly through a transfer causa mortis where the real value of the share of the property assigned under the said deed to each co-owner is equal to the real value of the undivided share held by each co-owner bef ore the partition: Provided that where the real value of the share of the property assigned to a co-owner exceeds the real value of the undivided share held by such co-owner before the partition, duty shall be paid on such excess: Provided further that where an undivided share held by a co-owner would have been transferred causa mortis to such co- owner, the provisions of this sub -article shall only apply wher e any duty chargeable in respect of the property transferred causa mortis has been paid, or no duty is payable on such transfer, and the notary declares on the relative deed that the property in question cam e to the co-owner through a transfer causa mortis and that a complete declaration, including the property to which the partition refe rs, has been duly made in accordance with article 33. The notary shall on any such deed give the relevant details of all the declarations made in accordance with article 33. Special rules applicable to trusts. Added by: XIII. 2004.72.