How inheritance tax works in Malta
Malta does not levy a general inheritance tax or estate tax. The key exception is immovable property in Malta, which passes through a causa mortis deed and is subject to duty under the Duty on Documents and Transfers Act.
The basic duty rate on inheriting Maltese immovable property is 5% of market value at the date of death. In 2026, the reduced 3.5% rate was extended to the first EUR 400,000 in qualifying residential cases, subject to the usual residence conditions.
Timing matters. A deed within six months can qualify for a rebate, while delay beyond one year can trigger interest and may affect exemptions. Shares in Maltese companies can also trigger transfer-duty rules.
Succession is not just a tax issue. Wills, notarial steps, registry filings, property ownership, and whether the asset is a sole residence all affect the final result.
Tax rates at a glance
- Inheritance tax
- 0%No general levy
- Causa mortis duty
- 5%
- Reduced residential duty
- 3.5%
- Late filing interest
- 4% p.a.
Who benefits most
These profiles tend to benefit most when the rules match their real residence, payroll and business setup.
FamiliesProperty ownersExpatsInvestorsFamily offices
Watch out for
- Malta's lack of a general inheritance tax does not remove the need for a notary, especially where Maltese property or company shares are involved.
- The reduced residential duty rules are conditional, so the ordinary residence and occupancy facts must be checked carefully before assuming the lower rate applies.
- Heirs living outside Malta can still face tax, probate or reporting obligations in their own country even if Malta's inheritance levy is limited.
Frequently asked questions
Does Malta have inheritance tax?
Malta does not have a general inheritance tax or estate tax. Maltese immovable property passing on death is still subject to causa mortis duty and notarial formalities.
What is the tax on inherited property in Malta?
The basic duty rate is 5%, with a reduced 3.5% rate applying in qualifying residential cases. The 2026 budget extended the reduced rate to the first EUR 400,000 in those cases.
Do heirs need a notary in Malta?
Usually yes, if the deceased owned immovable property or company shares in Malta. The transfer must be published and registered properly.