Property Valuation for Inheritance (Causa Mortis) in Malta

When someone dies in Malta and leaves immovable property, the transfer of that property to the heirs is formalised through a deed known as a declaration causa mortis (Latin for "by reason of death"). It is the legal instrument that records who has inherited the property and at what value, regulated under the Duty on Documents and Transfers Act (Cap. 364).

The declaration is published by a notary public and registered in the Public Registry. Until it is concluded and registered, the heirs do not have a clean, marketable title to the inherited property, which makes a later sale, mortgage or further transfer difficult.

Heirs are not obliged to act together. According to the Malta Tax and Customs Administration (MTCA), each heir may go to a notary and make a declaration causa mortis for their own share only, rather than all heirs signing a single deed.

A declaration causa mortis cannot simply name the property; it must attach a value to it. The MTCA requires the heirs to state the true value of each property, or share, being transferred to them, and this declared value is what the transfer is taxed on.

The reference point is the market value of the property at the date of death, not its value today and not the price the deceased originally paid. Getting that figure right matters in two directions: it drives the duty payable now, and for property inherited after 24 November 1992 it fixes the acquisition value used to work out the tax on any later sale (see pitfalls below).

In practice the value attached to the declaration is supported by a valuation prepared by a warranted architect (perit). The perit inspects the property, considers its location, size, condition and any planning or title issues, and arrives at an open-market figure as at the relevant date.

As with bank and mortgage valuations, the core method is comparables: recent sale prices of broadly similar properties in the same area, adjusted for differences in size, finish and state of repair. The declaration is also accompanied by a Land Registry site plan identifying the property.

A defensible, well-documented valuation protects the heirs. Declared values are vetted, and if the department does not accept a figure its own architect may establish the market value; a figure that looks too low therefore invites a challenge and a revised assessment.

• Basis: open-market value at the date of death.
• Prepared by a warranted architect (perit), not the bank.
• Method: comparable sales, adjusted for the specific property.
• Supporting documents: Land Registry site plan; title references.

Transfers of immovable property on death are subject to duty under Malta's duty on documents and transfers regime, administered by the Malta Tax and Customs Administration (MTCA), which absorbed the former office of the Commissioner for Revenue (CFR). The duty is calculated on the value of the property as declared in the deed, which is why the valuation is central to the whole process.

The headline rate of duty is 5% of the market value of the property. A reduced rate of 3.5% applies to a band of the value where the dwelling is inherited as the ordinary residence of the deceased and/or the transferees; the standard 5% applies to any value above that band. PwC reports that the upper limit for the reduced-rate band was raised to EUR 400,000 (from EUR 200,000) with effect from 28 October 2025 under Budget 2026; older MTCA guidance still cites lower figures, and a first portion of the value is exempt. Because thresholds and exempt bands change with each Budget, confirm the current figures with your notary before relying on any number.

Some transfers are fully exempt. Per the MTCA, the devolution to a surviving spouse (or cohabitant) of the deceased's share in their sole (ordinary) residence is exempt — the exemption is conditional on it being the shared sole residence, not any dwelling house. A parallel exemption applies where children inherit a parent's ordinary residence, conditional on the deed being concluded within one year of death.

The notary typically collects the duty and accounts for it to the MTCA on registration of the deed. Declared values are subject to vetting, and if the authority considers a value understated it can be revised, with duty recalculated accordingly.

There is no fixed day-one deadline to inherit, but timing affects cost. The MTCA framework charges interest on duty once a year has passed from the date of death, and earlier conclusion can preserve certain reliefs — notably the children's ordinary-residence exemption, which requires the deed within one year of death.

Most problems with a causa mortis transfer come down to the value declared and to coordination between heirs.

• Under-declaring the value. A low figure reduces duty now but can be challenged and revised by the department's assessors, with additional duty and interest, and it understates your acquisition value for any future sale.
• Ignoring the later-sale base cost. For property inherited after 24 November 1992, the value declared on the causa mortis becomes the acquisition value: on a later sale, property transfer tax of 12% is charged on the difference between the sale price and that declared value, so an artificially low inheritance value enlarges the taxable difference later. (Property inherited before that date is taxed differently — broadly a flat rate on the selling price — so the declared value does not feed into that calculation.)
• Multiple heirs out of step. Because heirs can declare separately, shares can be valued inconsistently or some heirs may delay, complicating a later sale of the whole property.
• Leaving it too long. Waiting past a year triggers interest on the duty and forfeits the children's ordinary-residence exemption, which depends on concluding within one year.
• Treating a bank or estate-agent figure as a formal valuation. The declaration is supported by a perit's valuation; an informal estimate is not a substitute.