Last Updated on 13th January 2026
The Maltese tax regime has no estate or inheritance tax, which is one of the many reasons it is considered a tax-friendly destination for estate planning, and for affluent expats who wish to preserve their wealth to pass on to loved ones in the future.
However, the absence of inheritance tax doesn’t mean that foreign nationals can overlook planning, because there are numerous considerations. They include the potential exposure to UK Inheritance Tax (IHT), the implications of forced heirship rules, and the importance of having a will that is fully recognised and enforceable in Malta.
Our local team has compiled key insights that all expats living in or planning a move to Malta should know, highlighting common errors non-EU citizens make when assuming they won’t need to take action to ensure their estate is distributed according to their wishes.
The Importance of Maltese Estate Planning Despite the Lack of Inheritance Tax
As we’ve noted, the lack of inheritance tax by no means implies that assets and estates can be ignored, or that they will automatically be passed to your heirs tax-free. Forced heirship is prevalent in European countries, including Malta, which means that if you do nothing, assets will be apportioned regardless of whether that contradicts your will.
While most expats want at least some of their estates to pass to a spouse and children, many also don’t want to sacrifice control. They may have significant assets, complex family relationships, or specific assets they want to leave to a certain individual.
Malta has adopted the EU Succession Regulation, meaning expats can elect to follow UK inheritance laws, which do not incorporate any forced heirship provisions. However, this must be registered correctly well in advance to ensure the estate owner’s wishes aren’t overridden.
Possible Taxes Payable Against Maltese Inheritances
Some assets may be subject to a tax charge, because although there isn’t an inheritance tax, other obligations may exist. They include:
- Capital Gains Tax: Charged against the gain arising from the sale of an inherited property if this was not the primary residence of the distributor or was not occupied for three years or more before they passed away.
- Capital Transfer Duty: A levy similar to stamp duty, with a 5% rate payable against inherited properties. This does not apply if the beneficiary is a spouse, cohabitant or child.
- UK IHT: Payable if the distributor is deemed a long-term UK resident.
There are varied exemptions and allowances in addition to these taxes, depending on the relationship of the inheritor to the original owner, the value of the property and whether they plan to live there, but it is incorrect to assume that all Maltese inheritances are 100% tax-free.
Why Expat Residents in Malta May Be Subject to UK Inheritance Tax
Reforms to the UK tax system mean more overseas expats may be subject to British IHT, even if they have lived overseas for many years. Much will depend on the specifics, but from April 2025, UK citizens will be assessed based on their residency, not their domiciliary status.
A British expat living in Malta could be categorised as a long-term resident if they:
- Were a UK tax resident for 10 of the last 20 years
- Were a UK resident for 10 years before the current tax year
The estate of a person deemed a long-term UK tax resident will be subject to UK IHT against all worldwide assets, including any unused pension wealth which has been included in the scope of IHT from 2027.
If this does not apply, it is worth noting that the estates of expats who are not long-term UK residents may still be subject to IHT on UK assets.
Creating a Recognised and Valid Will as a Maltese Resident
Malta does, technically, recognise wills created overseas, but this isn’t set in stone. That’s because this may depend on the legal structure and type of will, and whether it is compliant with existing tax laws, which may not be the case if a will was created long ago.
Maltese wills can be registered with the Public Registry, which means they are created by a notary and witnessed by two independent individuals, or can be written by a person who is at least 18, who then lodges the will with a notary.
In either case, if there is no will, or it is not considered valid for any reason, intestate succession rules come into force. That means estates are distributed between a spouse and children, or to other family members if there are no children, but also that the estate can be collected by the government if no heirs are identified.
This makes it paramount that expats create legally valid wills, keep them updated, and ensure they are fully compliant, without any risk that their estate will be allocated against their wishes or collected by the Maltese government.
Key Issues That Strategic Maltese Estate Planning Can Help Avoid
The most common issues with estates and succession in Malta arise when expats haven’t created a will or kept it up to date. They may, for example, have an outdated will created during a previous marriage or relationship, or have failed to register their wish for UK inheritance law to apply, which means the estate becomes subject to forced heirship rules.
Other issues include a lack of tax planning, with expats unaware that their assets may be subject to UK IHT or that certain real estate assets may be exposed to other transfer and capital gains taxes.
While Malta’s tax regime is widely perceived as beneficial, and there is no local inheritance tax, we strongly recommend foreign national expats take action to ensure they understand the taxes, distributions and potential trust structures that will protect their estates and have the peace of mind that their assets will be distributed exactly as they would like.
For more information on Maltese estate planning, exposure to UK IHT as a cross-border expat or ensuring your estate is managed in accordance with UK regulations, please contact the Chase Buchanan Private Wealth Management Maltese team to schedule a call with one of our experienced advisers.
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*Information correct as at January 2026
