Company in Malta

Malta is an EU Member State with
an Exceptionally Advantageous Tax Regime

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Malta company formation package: 99 EURO – arrangement of Malta company formation and bank account (via officially licensed local member / partner firms) including VAT and Tax registration. "FBS KOTSOMITIS", operating since 1998, is a well-known and established international professional services network with officially licensed and regulated local member / partner firms. Contact us to start process by sending an email to enquiries@fbsmalta.com, by using our contact form or by calling on +356 2338 1500.

Malta Immovable Property Tax

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Malta Immovable Property Tax, Charge and Rates. Inheritance Tax

Tax Charge and Rates

Tax is imposed on the immovable property’s owner (individuals and/or legal persons) in Malta, upon the transfer of the immovable property, in the following manner:

  • Immovable property which is transferred inter vivos shall be taxable at 12% of the transfer price, if the subject property has been in the possession of the transferor for more than seven (7) years immediately preceding the transfer.

Where the subject property has been retained by the transferor for a period of less than seven (7) years immediately preceding the transfer, the transferor may elect, either to (i) pay 12% of the transfer price; or (ii) pay 35% on the gain on the sale.

No capital gains is payable where the subject property was the ordinary residence of the transferor for three (3) years immediately preceding the transfer.

  • In the case of immovable property, a distinction is made between property inherited prior to the 24 November 1992 and immovable property inherited after this date

Immovable property inherited prior to 24 November 1992 shall be taxable at 7% of transfer value, whereas immovable property inherited after this date is taxable at a rate of 12% of the difference between the transfer value and the cost of acquisition.

  • In the case of immovable property transferred by donation, the litmus test is whether the property is transferred within 5 years from date of the acquisition.

In the event of immovable property transferred within 5 years from acquisition, the transferor may elect, either to (i) pay 12% of the value price; or (ii) pay 35% on the gain on the sale.

Conversely, no discretion is permissible in the case of immovable property transferred after 5 years from acquisition, and the transferor shall pay tax equal to 12% of the difference between the transfer value and the acquisition value.

Inheritance Tax

There are no inheritances taxes payable in Malta. However, transfer of immovable property and securities causa mortis may be susceptible to Duty on Documents Tax.

For bespoke Tax advice, please click here to contact our tax advisors or send us an email on enquiries@fbsmalta.com

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