The Macau authorities have proposed changes to tax incentives for real estate purchases in response to market conditions, aiming to increase the maximum mortgage loan-to-value ratio from 70% to 80% and to establish a 3% tax on the portion of residential properties valued at MOP6 million or more that exceeds this amount.
Presenting his portfolio’s policy direction at the Legislative Assembly (AL) yesterday, the Secretary for Economy and Finance, Anton Tai, expressed his commitment to adjusting tax incentives for real-estate purchases. He stated that qualified residents purchasing residential units will be exempt from stamp duty on the first MOP6 million, with corresponding adjustments to mortgage loan-to-value limits.
“The measures will initially be implemented for residential projects,” he noted, adding that commercial projects will require further assessment after evaluating the impact of the new measures. “Tourist areas differ significantly from other communities,” he emphasized.
As a supplement, the Monetary Authority of Macao (AMCM) proposed increasing the loan-to-value ratio for residential mortgages from 70% to 80%. This measure is scheduled to take effect alongside the budget proposal to raise the residential property tax exemption to MOP6 million, aiming to improve affordability for potential homebuyers in the current market.
Meanwhile, the AMCM reported that as of the end of September, total fiscal reserves have been revised to MOP658.7 billion, with preliminary calculations indicating an investment income of MOP34.9 billion, resulting in a return rate of 5.6%.
Gov’t to take control of revitalization plans under ‘big six’
After two to three years of implementation, the Secretary for Economy and Finance acknowledged yesterday that “some projects have not achieved the expected results” and will need fine-tuning while staying within their original scope.
Regarding the government’s revitalization plans for declining urban and rural areas, which the six gaming concessionaires are currently undertaking as part of non-gaming development projects, Tai announced a new development model set to begin this year or next.
This model includes government oversight and coordination, with the concessionaires’ investing resources while the private sector manages planning and implementation. The aim is to leverage the strengths of all parties to promote sustainable development in these zones.
The government will approve development plans, coordinate resource allocation, and support the creation of district development centers to plan and implement specific projects, with the concessionaires dedicating resources to district development in line with their agreements with the government.
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