Inheriting Property in Malta: What Heirs Should Know

Testate and Intestate Succession

A person may leave a will, in which case their estate is distributed as they direct, subject to the reserved portion described below. Where no valid will exists, the estate is distributed by intestate succession under a fixed order set out in the Civil Code. In broad terms, the estate devolves first to the deceased's descendants, then to the surviving spouse, then to ascendants such as parents, then to collateral relatives such as siblings, and only in the absence of any of these to the Government of Malta. The precise share each category receives depends on which other categories survive the deceased and in what number, so two estates with a similar asset base can be divided quite differently depending on the family circumstances.

Malta has no probate system in the sense familiar to buyers from common law jurisdictions. There is no court process reviewing a will for validity before an estate can be administered. A will published by a Maltese notary, or a foreign will recognised as valid, generally takes effect directly, with disputes over validity or entitlement handled by the civil courts only if a claim is actually raised.

The Reserved Portion: Malta's Forced Heirship Rule

Malta does not allow complete freedom of testation. A portion of the estate, known as the reserved portion and formerly referred to as the legitim, is set aside by law for the deceased's children and, in defined circumstances, their surviving spouse, regardless of what a will provides. The remainder, the disposable portion, is what the deceased may leave freely to whomever they choose.

The size of the reserved portion depends on the number of children and whether a spouse survives, and it applies whether the deceased died testate or intestate. Children are also required to bring into account, a process called collation, any significant lifetime gifts they received from the deceased, so that one child cannot be effectively over-compensated during the deceased's lifetime at the expense of a sibling's eventual reserved share. A claim to the reserved portion must generally be brought within ten years of the succession opening, and interest can accrue on the claim from an earlier point if pursued promptly.

For owners drafting or reviewing a will, and for buyers assessing a property that has passed through a family estate, the practical implication is the same: a will cannot always be relied upon to dispose of a property exactly as written, and title deriving from an estate should be checked carefully by a notary to confirm all reserved-portion claims have been satisfied or have lapsed.

Multiple Heirs and Co-Ownership

Where a property passes to more than one heir, whether children, siblings, or a combination of relatives, it is common for the property to be inherited in undivided shares rather than allocated outright to a single person. Each co-heir may make their own causa mortis declaration for their share independently, without requiring the others to act at the same time, which is useful where heirs are spread across different countries or simply proceed at different paces.

Undivided co-ownership can, however, become impractical, particularly where heirs disagree on whether to sell, rent, or retain the property. Maltese law allows any co-owner to request a judicial division of common property, and where physical division is not feasible, such as with a single apartment, the court can order a sale by auction with proceeds divided among the co-heirs according to their shares. Reaching a private agreement, whether a buyout between siblings or a coordinated sale, is almost always faster and less costly than proceeding to a court-ordered division, and is worth pursuing early wherever family relations allow.

Foreign Heirs and Cross-Border Succession

Malta's international property market means cross-border succession is a routine, not an exceptional, situation. Since 17 August 2015, succession across most of the European Union, Malta included, has been governed by the EU Succession Regulation, commonly known as Brussels IV. Under the Regulation, the default rule is that the law of the deceased's habitual residence at the time of death governs the succession of their entire estate, wherever in the EU the assets are located. A person may instead choose, in their will, for the law of their nationality to apply, which is a common and often advisable step for foreign nationals who own property in Malta but do not intend to be habitually resident there indefinitely.

The United Kingdom, Ireland and Denmark are not signatories to the Regulation, which matters for the many British and Irish nationals who own property in Malta. In practice, this means the interaction between Maltese succession law and the succession law of a British or Irish estate needs to be worked through carefully with legal advisers in both jurisdictions, rather than assumed to align automatically.

It is also important to separate succession law from succession tax. The Regulation determines which country's law governs who inherits what, but it does not touch tax. Regardless of which law applies to the succession as a whole, Maltese causa mortis duty still falls due on any immovable property situated in Malta, simply because the property is located there. A foreign heir inheriting under, say, French or American succession law will still need to complete a Maltese causa mortis declaration and settle any duty owed before dealing with the property locally.

For heirs proving their entitlement across borders, the European Certificate of Succession is a useful document introduced by the Regulation, allowing an heir, executor or administrator to demonstrate their status in any EU member state without repeating the full local legal process in each one.

Minors Inheriting Property

Where a minor stands to inherit an interest in property, whether outright or as a co-heir, that interest cannot be dealt with as freely as an adult heir's share. A minor cannot independently sign a deed, grant a mandate, or agree to a sale. Their interests are represented by a parent or legal guardian acting as curator, and certain transactions, most notably the sale of the minor's share, require the authorisation of the Maltese courts, granted only where the court is satisfied the transaction is in the minor's best interest. This adds a procedural step and a realistic timeline of some months to any transaction involving a minor heir, a point worth factoring in early if the family intends to sell rather than retain the property.

Renouncing an Inheritance

An heir is not obliged to accept an inheritance. Succession in Malta can be renounced, typically where the estate carries debts exceeding its value, or simply where an heir has no interest in a jointly held asset such as a property they would rather not co-own. Renunciation must be made expressly, generally by a declaration before a notary, rather than assumed from an heir's silence or inaction.

Renunciation of the succession as a whole does not automatically forfeit a claim to the reserved portion; Maltese law specifically allows an heir to renounce the general succession while still expressly reserving the right to claim their reserved portion, provided that right is also asserted expressly. Where an heir renounces entirely, their share accrues to the other heirs in the same category, or passes to the next category in the order of succession if no other heir in the same category exists.

Frequently Asked Questions about Inheriting Property in Malta

Can a will in Malta leave everything to one heir?

Not entirely. Children, and in some circumstances a surviving spouse, are entitled to a reserved portion of the estate regardless of what the will states. Only the remaining disposable portion can be left entirely freely.

Does a foreign will cover Maltese property automatically?

It can, depending on which country's succession law applies under the EU Succession Regulation and whether the deceased made an express choice of law. A Maltese notary will need to confirm how the will interacts with Maltese formalities before the property can be transferred, regardless of which law ultimately governs entitlement.

What happens if heirs disagree about selling an inherited property?

Any co-heir can request a judicial division. Where the property cannot be physically divided, the court can order a sale, with proceeds shared according to each heir's entitlement. A private agreement between heirs is almost always quicker and less costly than this route.

Can an heir refuse an inheritance?

Yes. Succession can be renounced by an express declaration before a notary, and an heir may renounce the general succession while still separately claiming their reserved portion, provided that is also done expressly.

Does a minor need special permission to inherit or sell property?

A minor can inherit, but any sale of their interest requires court authorisation, granted only where the sale is shown to be in the minor's best interest, and a parent or guardian acts as curator throughout.

This article is intended as general guidance. Succession involving Maltese property, particularly where a will, multiple heirs, or a foreign element is involved, should always be reviewed with a Maltese notary or lawyer against the specific facts of the estate.

Can a will in Malta leave everything to one heir?

Not entirely. Children, and in some circumstances a surviving spouse, are entitled to a reserved portion of the estate regardless of what the will states. Only the remaining disposable portion can be left entirely freely.

Does a foreign will cover Maltese property automatically?

It can, depending on which country's succession law applies under the EU Succession Regulation and whether the deceased made an express choice of law. A Maltese notary will need to confirm how the will interacts with Maltese formalities before the property can be transferred, regardless of which law ultimately governs entitlement.

What happens if heirs disagree about selling an inherited property?

Any co-heir can request a judicial division. Where the property cannot be physically divided, the court can order a sale, with proceeds shared according to each heir's entitlement. A private agreement between heirs is almost always quicker and less costly than this route.

Can an heir refuse an inheritance?

Yes. Succession can be renounced by an express declaration before a notary, and an heir may renounce the general succession while still separately claiming their reserved portion, provided that is also done expressly.

Does a minor need special permission to inherit or sell property?

A minor can inherit, but any sale of their interest requires court authorisation, granted only where the sale is shown to be in the minor's best interest, and a parent or guardian acts as curator throughout.

This article is intended as general guidance. Succession involving Maltese property, particularly where a will, multiple heirs, or a foreign element is involved, should always be reviewed with a Maltese notary or lawyer against the specific facts of the estate.

For the general rates and exemptions that apply to a straightforward purchase, see our guide to stamp duty on property in Malta.
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