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Generic Tax Name Duty on documents and transfers - Property transfers
Tax name in the national language Taxxa fuq Dokumenti u Trasferimenti - Trasferiment ta Propjeta
Tax name in English Duty on documents and transfers - Property transfers
Member State MT-Malta
Tax in force since 1992/11/25
If abolished, date on which the tax ceases to apply
Business version date 2015/01/01
Version date 2015/02/17
This file was last updated on

Type of tax
Direct taxes Personal income tax
Corporate income tax
Other

Indirect taxes VAT
Excise duty (EU harmonised)
Alcoholic beverages
Energy products and electricity
Manufactured tobacco
Other

Social security contribution Employers
Employees
Other
 
Legal base

Duty on Documents and Transfers Act, Chapter 364. Income Tax Act, Chapter 123.

 
Who sets
The tax rate is set by




The tax base is set by




The reliefs are set by




Comments
 
Beneficiary





Comments

 
Geographical Scope

Malta.

 
Taxpayers

The succession or transfer duties are levied on heirs and legatees causa mortis.

 
Tax object and basis of assessment

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.

 
Deductions, Allowances, Credits, Exemptions

Abatements:

-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.

Reductions:

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.

 
Rate(s) Structure

- 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:

 

  1. Transfers of immovable property acquired prior to 2004 will be subject to a 10% final withholding tax; and
  2. Transfers of immovable property, made by individuals who are non-property traders within five years from the date of acquisition of such property will be subject to a 5% final withholding tax.

 

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.

 

 
Tax due date

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.

 
Tax collector

Commissioner of Inland Revenue - Inland Revenue Department

 
Special features

 
Economic function







Comments
 
Environmental taxes



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Tax revenue
ESA95 code d91ac

Year
Annual tax revenue (millions)
Currency
Tax revenue as % of GDP
Tax revenue as % of total tax revenue
2012 12.11 EUR 0.17
2011 11.12 EUR 0.16
2010 11.26 EUR 0.17
2009 10.85 EUR 0.18
2008 11.70 EUR 0.19
2007 11.96 EUR 0.21
2006 11.04 EUR 0.20
2005 14.61 EUR 0.28
2004 6.73 EUR 0.14
2003 4.30 EUR 0.09
2002 3.86 EUR 0.08
2001 3.09 EUR 0.07
2000 2.92 EUR 0.07

Comments