Inheritance tax in Malta: What you need to know

Are you set to receive an inheritance from a relative living in Malta? Or perhaps you’ve retired to Malta as a UK expat, and plan to see out your days there.

In both of these circumstances, it’s useful to know a little about how inheritance law works in Malta - especially in relation to taxes.

In this guide, we’ll be covering all the essentials you need to know about inheritance tax in Malta. This includes rates, allowances, exemptions and how inheritance-related tax is calculated in the country - and how to pay any tax you may owe.

We’ll also show you how to send large amounts of money securely between countries using the Wise Account. This can be extremely useful if you have inheritance tax to pay, or want to send money from an inheritance back to the UK.

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Table of contents

What is inheritance tax? Inheritance tax in Malta Who pays inheritance tax in Malta? Inheritance tax rates in Malta Taxable assets and exemptions How to calculate inheritance tax in Malta How to pay inheritance tax in Malta Wise - For big money transfers at life’s big moments FAQs about inheritance tax in Malta How much can I inherit without paying inheritance tax in Malta? Is Malta a tax haven? What are the inheritance rules in Malta? Which other EU countries have no inheritance tax?

What is inheritance tax?

Inheritance tax, known as IHT in the UK, is a tax paid to the government on the estate of someone who has died. The ‘estate’ usually encompasses all property and possessions, as well as savings, investments and pensions.

Many countries have inheritance tax systems. Depending where in the world you are, the tax may be known as estate tax, inheritance tax or succession tax.

However, not all countries have this kind of tax in place. New Zealand, Singapore, Portugal and Canada are among a handful of countries which don’t charge inheritance tax at all.¹

Inheritance tax in Malta

Malta doesn’t have inheritance tax, estate tax or death duties. However, there is still what is known as Capital Transfer Duty (also known as stamp duty) to pay when certain assets and property are transferred as part of an inheritance.²

It only applies to real estate, property and other assets held in Malta, rather than in other countries.

The law and processes relating to inheritances is overseen by the Tax and Customs Authority Malta and applies to the whole country, with no regional variations.

Who pays inheritance tax in Malta?

Under Maltese inheritance tax laws, the estate of the deceased person is dealt with and taxed in the country they are permanently resident in.

So if you have a relative who permanently lives in Malta and you receive an inheritance from them, you may be subject to Maltese inheritance laws - even if you live in the UK or another country.

A crucial point to remember though is that only assets held in Malta are subject to the country’s Capital Transfer Duty.²

Anyone who is liable for the duty will need to pay it separately to the tax authority. This is different to how it works in the UK, where a lump sum of tax is paid out of the estate.

It’s important to get professional tax advice to check which country’s tax laws apply to you, especially if you live between countries or have property in multiple countries.

Inheritance tax rates in Malta

As Malta charges stamp duty rather than inheritance tax, its rates are a little different to other countries.

In the UK, there’s a flat rate applied to estates valued over a certain sum.

Elsewhere in Europe, countries such as Spain, Italy and France use progressive tax systems where the rate falls into set categories depending on the value of the inheritance and/or the relationship of the beneficiary to the deceased person.

These countries also offer a tax-free personal allowance to each beneficiary based on how close a relative they are to the deceased.

But in Malta, there’s just one rate of Capital Transfer Duty to know about - a flat rate of 5%.³ This applies to all beneficiaries who are eligible to pay the tax, although there are some exemptions and rebates - we’ll look at these next.

Taxable assets and exemptions

Under Maltese inheritance laws, all ‘immovable’ property situated in Malta is subject to Capital Transfer Duty when transferred as part of an inheritance.

However, there are some exemptions and allowances, such as:²

• No stamp duty is charged on property left to the spouse or cohabitant, or children of the deceased person (provided a number of conditions are met)
• A tax-free allowance of €250,000 EUR on property passed on from the deceased person to their children, where they will live on the property. The remaining value will be subject to a reduced rate of stamp duty of 3.5%.
• If the property will be the sole residence of a beneficiary and it is their first home, there is a tax-free allowance of €200,000 EUR.

How to calculate inheritance tax in Malta

In order to calculate the amount of Capital Transfer Duty owed by recipients of Maltese property as part of an inheritance, the tax authority in Malta must determine the value of the assets - for example, the value of a real estate property.

To do this, the authority’s assessor will provide a value for each asset. This will be checked by an internal board and if required, an additional valuation from a third-party specialist will be sought.⁴ This is the value that will be used to calculate the 5% stamp duty owed.

How to pay inheritance tax in Malta

If you are a beneficiary who is liable for stamp duty, there is a set process you must follow.

The first step is to go to a Notary Public to have a ‘Causa Mortis’ declaration (known as denunzja in Maltese) drawn up. On signing this declaration, you must pay the amount of Capital Transfer Duty due. The Notary then registers the declaration and transfers the duty paid to the tax authorities.⁵

There are penalties to pay if you don’t submit your Causa Mortis declaration and pay the required transfer duties on time. If you fail to make the declaration within a year of the person’s death, you'll have to pay interest at a rate of 4% per year. You may also miss out on any exemptions you may have been eligible for. ⁶

You’ll need to contact the tax authority to find out about available payment methods.

If you’re living in the UK or another country, a solution such as Wise could be ideal for sending a payment for inheritance tax to Malta. You can send money worldwide with Wise, for low fees* and mid-market exchange rates. There’s even a dedicated service for securely sending large amounts.

Wise - For big money transfers at life’s big moments

After reading this, you should have a better idea of how the Maltese inheritance tax system works - or rather, how the country’s transfer taxes apply to inherited assets in the country. We’ve looked at rates, exemptions and how to pay inheritance-related tax in Malta.

If you need a way to pay taxes abroad, send inherited money back to the UK or generally manage your finances between countries - Wise is a great solution.

With Wise, you can hold and convert between 40+ currencies in your online account. And you can send money worldwide for low, transparent fees* and mid-market exchange rates.

If you’re sending a large sum between countries, read our quick guide on what documents you’ll need.

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FAQs about inheritance tax in Malta

Here are some commonly asked questions:

How much can I inherit without paying inheritance tax in Malta?

It all depends on your relationship to the person who has died. If you’re a close relative such as a spouse or child, you shouldn’t have to pay the stamp duty tax that Malta uses instead of inheritance tax.

Is Malta a tax haven?

No, Malta isn’t officially classed as a tax haven, like some European countries like Monaco, Luxembourg and Switzerland.

Recognised tax havens often have very low or no corporate tax, while Malta charges a respectable rate of 35%. However, Malta is often mentioned in the same breath as other tax havens due to its tax refund system for companies, which can reduce the amount of tax owed.⁷

And of course, there’s also the fact that Malta doesn’t charge any inheritance tax - although it does have a transfer tax on inherited assets.

The country is also transparent on tax (unlike some known tax havens) and adheres to all EU regulations.⁷

What are the inheritance rules in Malta?

Malta uses a system called forced heirship to determine how inheritances are divided. This is part of the country’s Civil Code.

This is where close relatives (the spouse and any children) of the deceased are considered to have a right to inherit a share of their estate, despite what might be in the person’s will.⁸

If there’s no will or the will is ruled invalid, estates are divided in line with the country’s succession laws.

Which other EU countries have no inheritance tax?

Within the EU, the following countries have no inheritance taxes:⁹

• Austria
• Cyprus
• Estonia
• Latvia
• Portugal
• Romania
• Slovakia
• Sweden.

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Sources used:

1. No More Tax - 10 jurisdictions with no inheritance tax
2. PwC - Tax Summaries - Malta
3. Tax & Customs Administration Malta - FAQs Causa Mortis
4. Tax & Customs Administration Malta - Inheritance - Assessments
5. Tax & Customs Administration Malta - Inheritance Tax
6. Tax & Customs Administration Malta - Declaration Causa Mortis
7. Offshore Protection - Is Malta a Tax Haven? Offshore Jurisdiction Review
8. Law Gratis - Inheritance Laws in Malta
9. Euro News - Inheritance tax across Europe: How do the rules, rates and revenues vary?

Sources last checked on date: 28-Jul-2025