Inheriting property in Malta can be an exciting yet challenging experience, especially if you are considering selling the property. Whether you are an heir looking to sell or someone managing the estate, it’s important to understand the process and legal requirements to ensure a smooth transaction.

Here’s a comprehensive guide on how selling inherited property in Malta works, step by step.

1. Understanding Ownership and Inheritance Laws in Malta

Before you can sell an inherited property, you must first ensure that you are the legal owner. In Malta, inheritance laws follow a system based on the Civil Code, and the process begins when a person passes away. Here’s what you need to consider:

• Will and Testament: If the deceased person left a valid will, the property is inherited according to their wishes. In the absence of a will, the property is divided based on Malta’s intestacy laws.
• Certificate of Inheritance: Once the property has been legally inherited, the next step is obtaining a Certificate of Inheritance from the Public Registry. This certificate officially confirms the heirs and their shares of the property.
• Notarial Deed of Partition: In cases where there are multiple heirs, a deed of partition may be required to clearly define each heir’s share of the property.

2. Clearing Any Outstanding Debts or Obligations

Before selling the inherited property, it’s crucial to settle any debts associated with the property, such as unpaid taxes, maintenance fees, or utility bills. These must be cleared to ensure that the property is free of encumbrances when put up for sale.

• Property Tax & Capital Gains Tax: In Malta, the sale of inherited property may attract capital gains tax, depending on the property’s value and how long the seller has held it. It’s important to consult with a legal advisor to understand the full tax implications.
• Outstanding Mortgage: If the deceased person had an outstanding mortgage, this will need to be cleared before the property can be sold. If there is no mortgage, you can proceed to the next step.

3. Valuing the Property

Once the property is free of legal encumbrances, the next step is to have it valued. A proper valuation is essential for setting a fair price and ensuring that you don’t over- or underprice the property.

An architect and/or local real estate agent can help you with this, and many agents also work closely with architects to provide accurate assessments.

4. Legal Process of Selling the Property

To officially sell the property, the following steps are involved:

• Engaging a Notary: In Malta, all property transactions must be formalised through a notary. The notary ensures that all legal requirements are met, including the preparation of the sale contract and the transfer of ownership.
• Promise of Sale: Once a buyer has been found, the notary prepares the sale agreement, which includes all necessary details such as the price, payment terms, and a clear description of the property.
• Final Deed of Sale: After both parties sign the preliminary agreement, the notary will schedule the final deed of sale, which transfers ownership of the property from the seller to the buyer. The buyer will pay the agreed price, and the notary will register the transaction at the Public Registry.

5. Understanding the Costs and Fees of Selling

When selling inherited property in Malta, you should also factor in the costs associated with the sale. These typically include:

• Notary Fees: The notary charges a fee based on the property’s value, usually around 2%.
• Real Estate Agent Fees: If you choose to work with a real estate agent, fees in Malta are 5% of the sale price.
• Capital Gains Tax: If the property has appreciated in value, you may need to pay capital gains tax. The rate is generally 12%.

6. The Role of Real Estate Agents in Selling Inherited Property

Selling inherited property can sometimes feel overwhelming, especially if you are not familiar with the local real estate market or the legal process. A real estate agent can help you navigate the selling process by:

• Providing Expert Advice: Real estate agents can advise on how to price your property and what improvements can enhance its value.
• Marketing the Property: They can help you reach a wider audience by listing the property on major platforms, hosting viewings, and negotiating offers on your behalf.
• Handling Legal Documents: They can assist or liaise with the notary to ensure that all legal paperwork is in order and help you avoid any complications.

Selling inherited property in Malta can be a complex process, but with the right guidance and preparation, it can be a smooth and profitable experience. Ensure that you follow all legal procedures, settle any outstanding debts, and work with trusted professionals, such as notaries and real estate agents like BENESTATES, to guide you through the process.

Disclaimer: This content is for informational purposes only. BENESTATES is a licensed real estate agency, not a legal or financial advisor. For personalised legal or tax advice, please consult a qualified professional.