Inheritance is the procedure through which a person receives various assets that belonged to a deceased person, who were stipulated in a will. Such assets are passed forward to successors and to each person/s is/are who is/are entitled to inherit. Although the procedure comes into effect at a sensible moment in life, several legal aspects have to be undertaken. We recommend you to get legal advice from a law firm in Malta aboutthe Inheritance Law in Malta. With a deep knowledge in various civil matters, our Maltese lawyers can help local and foreign citizens in inheritance matters, including purchasing properties in Malta that can be mentioned by the testament.
|Inheritance tax in Malta
|Malta does not impose inheritance tax, also known as estate tax or succession tax.
No estate duty
|There is no estate duty in Malta, which means that beneficiaries do not have to pay taxes on the total value of the estate.
No inheritance tax on assets
Inheriting assets in Malta such as property, investments, or money does not trigger an inheritance tax liability.
|Immovable property transfer tax
|When inheriting immovable property in Malta, beneficiaries may be subject to a transfer tax of 5% upon registration of the property.
|Duty on the donation of assets between qualifying familiy members
Levied at the rate of 1.5% in certain conditions
Maltese Civil Code
|Estate planning and trusts
Proper estate planning and utilizing trusts can help manage and minimize any liabilities associated with inherited assets.
|Who is eligible for a reserved portion in inheritance?
Legitimate, illegitimate and adopted children
|Real estate and immovable property
Inheriting real estate or immovable property may trigger transfer taxes, but not inheritance tax in Malta.
|International wealth planning
|High-net-worth individuals should consider international wealth planning strategies to optimize tax efficiency for inherited assets.
|Charitable donations and bequests
Beneficiaries considering charitable donations or bequests may enjoy tax benefits and exemptions in Malta.
|Tax implications for non-residents
Non-resident beneficiaries inheriting assets in Malta should assess their tax liabilities only in their home country.
|Legal and notarial fees
Beneficiaries may incur legal and notarial fees when handling the inheritance process, including will execution and estate administration.
|Legal age to receive inheritance in Malta
|Consult tax professionals
|It is advisable to consult our tax professionals and legal consultants familiar with Maltese inheritance tax laws for personalized guidance.
Inheritance regulations in Malta
The main law providing for inheritance in Malta is the Civil Code under which succession can be disposed based on a will or the lack of will. There are several ways in which the disposal of assets and various goods can take place after a person’s death, according to the Inheritance Law in Malta. These are:
- Through a will, case in which several conditions must be met, among which the validity of the will is essential.
- Through a secret will which is recorded with a court of law in Malta by the testator or one of the witnesses.
- Trusts and foundations are also means through which succession can be ensured by a person;
- Without a will, case in which intestate succession will be completed in accordance with the law.
No matter the case in which an inheritance is left to successors, you can rely on our lawyers in Malta can guide on how to draft a will. We can tell you more about inheritance rights of heirs in Malta.
Inheritance tax in Malta Malta does not impose inheritance tax, also known as estate tax or succession tax.
No estate duty There is no estate duty in Malta, which means that beneficiaries do not have to pay taxes on the total value of the estate.
No inheritance tax on assets
Inheriting assets in Malta such as property, investments, or money does not trigger an inheritance tax liability.Immovable property transfer tax When inheriting immovable property in Malta, beneficiaries may be subject to a transfer tax of 5% upon registration of the property. Duty on the donation of assets between qualifying familiy members
Levied at the rate of 1.5% in certain conditions. Succession law
Maltese Civil Code.Estate planning and trusts
Proper estate planning and utilizing trusts can help manage and minimize any liabilities associated with inherited assets. Who is eligible for a reserved portion in inheritance?
Legitimate, illegitimate and adopted children. Real estate and immovable property
Inheriting real estate or immovable property may trigger transfer taxes, but not inheritance tax in Malta.International wealth planning High-net-worth individuals should consider international wealth planning strategies to optimize tax efficiency for inherited assets. Charitable donations and bequests
Beneficiaries considering charitable donations or bequests may enjoy tax benefits and exemptions in Malta.Tax implications for non-residents
Non-resident beneficiaries inheriting assets in Malta should assess their tax liabilities only in their home country. Legal and notarial fees
Beneficiaries may incur legal and notarial fees when handling the inheritance process, including will execution and estate administration. Legal age to receive inheritance in Malta
Over 18. Consult tax professionals It is advisable to consult our tax professionals and legal consultants familiar with Maltese inheritance tax laws for personalized guidance.
Types of wills in Malta
The most common way of disposing of one’s assets after death is by will. Both nationals and foreign citizens who have relocated to Malta can take advantage of the laws of this country and draw up testaments through which they can leave their belongings to successors. The following types of testaments are acknowledged in Malta:
- Ordinary or common wills which can be public or secret, as seen above.
- Unica charta wills or joint testaments left by a husband and wife together.
- Privileged wills which can be drafted under extraordinary circumstances.
- Wills made at sea are also acknowledged by the Maltese legislation and are quite common in this country.
- A will drafted outside Malta by Maltese citizens can be enforced here.
It is important to know that the person drafting the will must comply with a few criteria, among which:
- He or she must have full mental capacity at the moment the testament is drafted.
- The individual must have reached the legal age of 18, however, younger persons can also draft wills as long as they may give financial dispositions.
- The individual must have at least two witnesses at the moment the will is written.
- The testator can be a foreign person, as there is no limitation in this sense; the will be valid in Malta.
Our Maltese lawyers can advise and help local and foreign citizens who need help in preparing their wills and who want to know more about inheritance rights of heirs in Malta. They can also grant a power of attorneywhen it comes to the enforcement of certain rights mentioned in a will.
Intestate succession in Malta
Intestate succession is possible under one or more of the following situations:
- A person has not left any testament.
- The will left by a person is not valid.
- If the testator has not made provisions about all his/her assets.
- If the heirs do not want to accept the inheritance.
- If one or more heirs are unable or lack the capacity of receiving an inheritance.
In the case of intestate inheritance, the division of property will follow specific regulations depending on the heirs. Our lawyers in Malta can explain how the rules of intestate inheritance apply. The same team can offer details about the succession tax in Malta.
Inheritance procedure in Malta
After the opening of the will, the successors to the inheritance have to follow specific steps in order to legally receive the ownership of the assets stipulated in the document. If the deceased did not leave a will, the successors are the closest relatives. Our Maltese lawyers can offer you details on how the inheritance will be distributed, in the situation in which there is no written testament.
The notary will hand in the testament in the moment when the death certificate is issued. In case of inheriting immovable properties, the successors must hire an architect to prepare an evaluation of the buildings. After the evaluation is done, the successor must pay a 5% transfer tax from the evaluation price of the building. If the successor is the life partner of the deceased, he or she must pay, at the transfer of ownership, a 5% tax on half of the evaluation price. If you believe you need more information about Inheritance Law in Malta, We suggest you address to our experts.
Descendants in inheritance cases in Malta
Under the Civil Law, the heirs to an estate in Malta can be the children, the spouse and the other close or distant relatives of the deceased. Unless a will has been drafted, the estate must be divided among the survivor heirs as follows:
- in the case of maximum four children, each heir will receive one-third of the assets divided in equal shares;
- in the case of more than five children, each heir will receive a half of the estate divided in equal shares;
- the spouse (if still alive) will be entitled to one-fourth of the entire estate of the deceased;
- the remaining share of the estate will be divided among the other living heirs of the deceased.
In order to enter the possession of their right of estate, the heirs must first accept it. This is done with the public notary who has certified the will or the lawyer of the family. Our attorneys in Malta can advise in matters related to the inheritance rights of heirs in Malta.
No will – inheritance procedure
Not all citizens leave a will after their death. In this case, the Maltese law states that first in line as successors are the children. If the couple did not have children, the inheritance will be given to the surviving spouse. If there are children and a surviving spouse, the belongings of the deceased will be equally shared between the above mentioned. Our lawyers in Malta can provide you with information on how the inheritance may be distributed, according to the family structure of the deceased.
Inheritance procedures opened from 17 August 2015 on, are solved under the Cross Border Succession Law, applicable to persons with more than two nationalities. When deciding to write a will, they can choose the succession law from any of the countries whose nationality they possess.
Foreigners and wills in Malta
Foreigners intending to draft a will in Malta are suggested to get in touch with our Maltese lawyers and benefit from comprehensive legal advice and assistance in this matter. Public or secret wills are available in Malta. While the public wills can be drawn up in the presence of witnesses in front of a notary, the secret one is drafted by the testator and then deposited with a notary in Malta. There is also the possibility of registering the will in the court of law of voluntary jurisdiction, in the presence of a magistrate. It should be noted that a will can be prepared by both spouses at the same time if they want to dispose of their common assets mentioned by the same document. In any case, foreigners in Malta need to comply with the applicable laws and especially the Inheritance Law in Malta.
A will registered in a country different from Malta can be available here and should respect the form specified by the law of the country where it was rendered. The rules concerning the retained portion are deemed to be public policy, and hence, any outlooks that are contrary to such regulations included in a will made outside Malta will not be effective in Malta, if such a will is contested by a family member. All you need to know aboutthe Inheritance Law Malta and about succession tax in Malta can be discussed with our Maltese lawyers.
Cases in which there is no will left in Malta
If a deceased person has no will, the provisions of the Inheritance Law in Malta referring to property distribution applies. In this direction, properties owned in Malta will be distributed in accordance with the intestate succession rules. The assets will be equally distributed to the spouse and children who survived the deceased. Moreover, if there are no children and spouse, the properties will be distributed to ascendants. You should talk to our attorneys in Malta and find out more about the inheritance tax in Malta and see how our specialists can help you.
Inheritance tax in Malta
According to the Maltese laws, there are no inheritance taxes in this country. Considering an inheritance can also take the form of a donation, it is also useful to know that there is no gift tax in Malta either. The only ley imposed is the transfer duty which must be paid by the heir. The rate of this levy is 5% of the value of the inherited estate. In case you need assistance in drafting a will, our Maltese law firm is at your disposal with full information on the legislation in this sense. We can also help foreign citizens who want to have their wills drafted in Malta.
Purchasing a property in Malta
The process of purchasing a property in Malta is relatively straightforward for both local and foreign citizens, respecting the agreements in this sense. It is quite recommended to ask for real estate due diligence and make some verifications of the sale-purchase contract before making a payment. Our Maltese lawyers can help citizens interested in buying a property in Malta and can also provide support for mentioning such assets in a will. Here are some facts and figures about properties in Malta:
- More than 1,300 property reservation contracts have been registered in Malta in August 2020, worth nearly EUR 300 million.
- A total of 1,600 property reservation agreements in Malta have been registered during the summer of 2020.
- The threshold amount for entering the Citizenship by Investment Programme in Malta increased from EUR 350,000 to EUR 700,000, in 2020.
Appealing a testament in Malta
Our Maltese lawyers can help local and foreign citizens appeal a will if they intend to do so. There are quite a few reasons why a will can be challenged by family members or by those not mentioned in this document. Here are some examples:
- The person who left a will in Malta can be considered mentally unfit.
- The will was not initialed before a notary public, and therefore, its value may raise questions.
- This document was made under pressure.
- There are people who are not mentioned in the will, although it would have been normal.
- If testamentary dispositions have been left in favor of persons who would not have any right of inheritance.
- In case of non-compliance with the quotas for spouses, the will can be attacked.
It is true that the process of challenging a will can be stressful and time-consuming. But, with the help of our lawyers in Malta, you will be able to get through these moments well because we have solutions at hand for you. In addition, the experience, in this case, helps us to offer our clients correct expertise and legal representation in court, if necessary. You can find out more about the inheritance rights of heirs in Malta from our specialists on inheritance issues.
Inherited assets accepted in Malta
According to Inheritance Law in Malta, anyone who wants to leave a will with his property can do so without restrictions. Both foreign and Maltese citizens can mention in a will what kind of property they can inherit: bank accounts with certain amounts of money, private property, bonds, stocks, companies, artwork, jewelry, cars, and other tangible goods.
Companies inherited by will must be based on clear document support. Although such an inheritance in the family can only be made with a verbal agreement, it is better to have this decision in writing, in order to be protected against potential appeals from certain shareholders in the company.
There are cases in which the shareholders of a company have challenged the decision of the founder of a company to leave it to the children. The process is quite complicated, although, at first glance, written and/or verbal consent should be sufficient to take over the inheritance. However, in order not to face such problems, it is better to talk to our lawyer in Malta and find out the conditions that you must meet if you want to leave a will. We are here to explain everything you need to know about the inheritance rights of heirs in Malta.
Is there a difference between beneficiaries and heirs?
Of course, the beneficiaries are the people mentioned in the will, while the heirs refer to the children who have been left behind by the death of one parent or both. A will should clearly state who is entitled to inherit the estate of the deceased. Although anyone can leave a will, as the last wish regarding the inheritance and its distribution, either in writing or orally, it is much better to do so in the presence of a notary and two witnesses. This way you will have the guarantee that the inheritance will end up in good hands and that the wishes will be respected. In addition, you can find comprehensive information on inheritance tax in Malta.
Legal advice from our specialists in Malta
As mentioned above, the legal support provided by a lawyer specializing in Inheritance Law in Malta is essential. If you have planned to make your will and you want to know how to do it legally, it is recommended that you call on our help and get an idea of the legal services we can offer you. You can find out what are the conditions mentioned by law regarding the drawing up of a will, how the assets are distributed according to their category, how they reach the family and how to avoid contesting such a document.
Succession tax in Malta is another important topic that we will develop if you plan to work with us. Thus, you will be informed about the taxes imposed at the time of handing over the respective inheritance in Malta. It is important to know that our legal services are addressed to both Maltese and foreign citizens who reside in this country and who at some point are beneficiaries mentioned in a will. We rely on professionalism, responsibility, and efficiency when working with our clients in a delicate situation like this.
FAQ about Inheritance Law in Malta
A will normally comprises information about the distribution of properties in the family. However, the disposal of assets can also be done without a will, respecting the succession stipulated by the legislation.
Common wills, joint spouse wills, foreign wills, and privileged wills are among the testaments accepted in Malta. More about the inheritance rights of heirs in Malta can be discussed with our Maltese attorneys.
It is quite recommended to have the support of a Maltese lawyer specialized in inheritance in Malta. Such an expert knows the Inheritance Law in Malta and can provide the necessary legal advice and assistance in this direction. More about succession tax in Malta can be found if you get in touch with our advisors.
At the moment, the inheritance tax in Malta is set at 5% of the value of the property inherited by will. Our lawyers in Malta can tell you more about the succession tax in Malta.
There is no obligation to draw up a will in Malta or anywhere else in the world, so many properties are distributed after a person’s death, with respect to the applicable laws. The surviving spouse and children are first in the line of succession. We invite you to find out all the details about the inheritance rights of heirs in Malta from our specialists.
If you need legal advice on inheritance procedures in Malta, our Maltese law firm can help you throughout the process. Please contact our attorneys in Malta, who can offer you consultations on this matter.