New housing tax rules take effect

Young Macau residents buying their first homes can now take out bank loans equivalent to 80 or 90 percent of the properties’ agreed-upon valuation.

The revised mortgage-lending rule is one of the new housing regulations which came into effect yesterday.

On Friday, a notice published in the Official Gazette amended the existing urban and housing tax regulations, as well as the regulations governing  stamp duty tax for the purchase of more than one residential property.

The two bills received second and final readings in the Legislative Assembly on February 6 and 7, respectively.

Under the new rules, the status of rental properties as exemptions to the vacant residential property tax will be removed.

The new stamp duty tax rule – applicable on acquisition of a second residential property – stipulates that homebuyers will be obliged to pay 5 percent of the property’s value on top of existing taxes.

For the purchase of a third property and over, the additional stamp duty will be 10 percent of the property value.

According to Chief Executive Chui Sai On, the new rules aim to promote the healthy development of Macau’s property market.

Speaking to reporters last week, Chui urged members of the public to exercise care when buying property and consider whether they can afford the asking price.

In a statement by the Government Information Bureau, government officials reiterated that banks must follow risk management guidelines and carefully assess prospective borrowers’ ability to repay loans. Each monthly repayment must be no greater than 50 percent of a borrower’s monthly income.

Clarification on new rules

THE MONETARY Authority of Macao (AMCM) and the Financial Services Bureau (DSF) jointly organized a session to clarify new measures approved by the Legislative Assembly, which aim to tighten regulations on the real estate market. During the session, the AMCM pointed out that it had sought opinions from diverse members of society, whose main wish is for the government to support property buyers who aspire to become homeowners even as they repay their mortgage loans..