Key facts
- Inheritance tax
- None
- Duty on immovable property
- 5% of market value at death
- Surviving spouse (sole residence)
- Exempt on deceased's share
- Heir's own residence
- Reduced 3.5% on first €400,000
- Rebate if filed within 6 months
- €250 (duty ≤ €2,300)
- Interest after 1 year
- 4% a year
Malta does not levy an inheritance tax, an estate tax or a gift tax. What it does charge is duty on documents when immovable property — or certain shares — passes to heirs. The duty is declared in a notarial deed known as a declaration causa mortis, which also registers the heirs as the new owners.
How much duty is due?
The basic rate is 5% of the market value of the property on the date of death. The value is declared by the heirs, usually supported by an architect’s valuation; as with sales, an unrealistically low value invites an assessment.
Exemptions and reduced rates
The surviving spouse
Where a surviving spouse inherits the deceased spouse’s share of the home that was their sole residence, that share is exempt from duty.
Heirs who already live in the property
Where an heir inherits a property that is already their sole residence, a reduced rate of 3.5% applies on the first part of the value. Budget 2026 raised this threshold from €200,000 to €400,000; the balance above it is charged at the normal rate.
Donations within the family
Parents who donate a home to their children during their lifetime also benefit from relief: no duty is charged on the first €250,000 where the property is used for residential purposes. Donations have other legal consequences — for example on the rights of other heirs — so discuss them with your notary.
The process, step by step
- Locate the will. Wills made in Malta are registered with the Public Registry and the Notarial Archives; your notary can search for them. Foreign wills may need to be proved before they can be acted on in Malta.
- Appoint a notary. The notary identifies the property, obtains searches and prepares the declaration causa mortis.
- Value the property. Usually by an architect, as at the date of death.
- Sign the declaration and pay the duty. The notary publishes the deed and pays the duty to the tax authorities.
- Register ownership. The deed is registered, so the heirs can later sell, let or mortgage the property.
Why timing matters
- Within six months: a rebate of €250 is available where the declaration is made within six months of death and the duty does not exceed €2,300.
- After one year: interest runs on the duty at 4% a year, and a late declaration can disqualify heirs from some exemptions.
When the heirs later sell
When inherited property is sold, the seller pays property transfer tax in the usual way — the rate depends on how and when the property was acquired. Keep the declaration causa mortis and the valuation with your title documents; your notary will need them.
International families
If the deceased lived abroad or held assets in several countries, two separate questions arise: which country’s succession law governs the estate, and which taxes each country charges. Maltese duty applies to property in Malta regardless of the owner’s nationality. EU succession rules and the terms of a will can decide the governing law, so international families should take joined-up legal advice.
