Inheritance Tax in Malta – A Guide for Expats

Malta does not levy an inheritance tax in the way many jurisdictions do. There is no tax imposed on the global estate of a deceased person, nor on beneficiaries merely by reason of receiving an inheritance.

This position applies irrespective of the deceased’s nationality or residence. For expats, this often makes Malta attractive as a jurisdiction in which to hold assets or retire. However, the absence of inheritance tax does not mean that inheritance in Malta is entirely tax-free.

While there is no inheritance tax, duty on documents and transfers may apply where assets are transmitted on death. This is most relevant in the case of immovable property situated in Malta.

Where an heir acquires Maltese immovable property by succession, a declaration causa mortis (commonly referred to as a denunzja) must be published by a Maltese notary. Duty is generally payable at 5% of the market value of the inherited property.

As Article 32 of the Duty on Documents and Transfers Act (Cap. 364) provides, duty becomes chargeable upon the transmission of property causa mortis.

“One of the most common misunderstandings among expats is equating ‘no inheritance tax’ with ‘no tax on inheritance’. In Malta, the distinction lies in how and when duty applies.”
Dr Charlene Mifsud, Partner

Maltese law provides for specific exemptions and reliefs, which may reduce or eliminate duty in certain circumstances. These depend on factors such as:

• the relationship between the deceased and the heir;
• whether the inherited property served as the deceased’s principal residence;
• the value of the property and the heir’s use of it following inheritance.

Reliefs are assessed on a case-by-case basis, and careful structuring is often required to ensure they are properly claimed.

Movable assets such as bank accounts, shares and personal belongings generally do not attract inheritance tax or stamp duty in Malta merely by reason of succession. However, procedural steps may still be required to establish heirship and enable transfer or access to assets.

Where movable assets are held through Maltese companies or trusts, additional considerations may arise depending on the structure.

or expats, the most significant inheritance tax exposure often arises outside Malta. Foreign inheritance or estate taxes may still apply by reference to:

• the deceased’s domicile, nationality or residence;
• the location of assets outside Malta;
• the residence of beneficiaries.

Malta’s lack of inheritance tax does not override foreign tax claims. Coordinated estate planning is therefore essential to avoid double taxation or unintended tax leakage.

“Malta’s inheritance framework works best when viewed as part of a wider cross-border plan, not in isolation.”
Dr Priscilla Mifsud Parker, Senior Partner

For internationally mobile individuals, inheritance tax planning in Malta is inseparable from succession planning. Key considerations include:

• whether Maltese assets should be governed by a Malta-law will;
• how duty exposure on immovable property can be managed;
• coordination with foreign wills and estate plans;
• use of trusts or holding structures where appropriate.

Early planning allows expats to take advantage of Malta’s favourable framework while maintaining compliance across jurisdictions.

Malta offers a clear and predictable inheritance tax environment, but it is not tax-neutral by default. Understanding how duty applies on death – and how it interacts with foreign tax systems – is critical for expats who own property or assets in Malta.

Proper advice ensures that inheritance is structured efficiently, lawfully and with minimal administrative friction for heirs.

How Our Succession Planning Lawyers Can Help You

Our lawyers advise expats and international families on inheritance and succession matters involving Malta, including duty exposure, estate planning, wills, probate and cross-border coordination. We work closely with foreign advisers to ensure cohesive and tax-efficient outcomes.

[question]Does Malta charge inheritance tax on death?[/question]
[answer]No. Malta does not impose a traditional inheritance tax, but duty on documents and transfers may apply, particularly on inherited immovable property.[/answer]

[question]Do expats pay tax when inheriting property in Malta?[/question]
[answer]Expats may be subject to stamp duty at the applicable rate when inheriting Maltese immovable property, subject to any available exemptions or reliefs.[/answer]

[question]Are inherited bank accounts taxed in Malta?[/question]
[answer]Generally no. Movable assets such as bank accounts do not attract inheritance tax in Malta, although procedural steps are required to access them.[/answer]

[question]Does Malta’s lack of inheritance tax override foreign taxes?[/question]
[answer]No. Foreign inheritance or estate taxes may still apply depending on domicile, residence or asset location outside Malta.[/answer]