Taxes in Europe Database v2
Duty on Documents and Transfers Act, Chapter 364. Income Tax Act, Chapter 123.
The succession or transfer duties are levied on heirs and legatees causa mortis.
Property and Capital.
The succession or transfer duties are levied on the value of each beneficiary's share of property inherited and of shares held in Public Limited Companies which companies are not quoted in the Malta Stock Exchange.
-Abatement of EUR35,000 of the value of a dwelling house, being an ordinary residence of the person from whom the transfer causa mortis originates, provided that where such dwelling house is not fully owned or otherwise held by the person from whom the transfer causa mortis originates, the amount of the value that shall not be taken into account shall be such amount as is proportionate to EUR35,000 or the value of the dwelling house (whichever is the less) as the proportion of the share of the ownership or other title under which the dwelling house is held by such person is the whole.
-Abatement of the value of the usufruct of any property chargeable bequeathed by the person from whom the transfer causa mortis originates in favour of his/her surviving spouse.
Where total duty payable by each heir/legatee, is less than EUR2,300 the duty shall be rebated by the amount of EUR230 and where such rebate exceeds the amount of duty chargeable, the rebate shall be reduced to the amount of duty so chargeable, provided that the declaration be made within six months from the date of death of the deceased.
- EUR5.00 for every EUR100.00 or part thereof of the amount or value of the consideration being inherited of such thing or the value of such thing, whichever is the higher.
- EUR3.50 for every EUR100.00 or part thereof on the first EUR35,000 value of the deceased dwelling house, be paid by heirs/legatees who used to live with the deceased in the same dwelling house being also their respective sole ordinary residence.
- 3% for every EUR230.00 or part thereof of the value of shares being inherited and which shares are held in Public Limited Companies which are not quoted in the Malta Stock Exchange.
As of 2015, transfers of immovable property will be subject to an 8% final withholding tax, to be levied on the transfer value, subject to the following exceptions:
Transfers of property made on or after 1 January 2015 would be taxed under the current tax system in cases where the ‘konvenju’ (promise of sale) for the said property transfer has been registered with the Commissioner for Revenue by 17 November 2014, being the date of the Budget Speech.
Duty is payable upon registration of the deed containing the Causa Mortis declaration within fifteen working days following that on which the document is completed.
Commissioner of Inland Revenue - Inland Revenue Department