Robert Abela Criticises Alex Borg’s Inheritance Tax Proposal Over Potential Higher Costs

Prime Minister and Labour Party leader Dr Robert Abela has announced a series of proposals aimed at reforming Malta’s succession and inheritance laws, while criticising proposals put forward by the Nationalist Party.

Speaking during the “Isma Dean” podcast, Dr Abela said the Labour Party’s measures are intended to reduce financial burdens on families inheriting property.

Under the proposals, heirs who inherit a property and make it their ordinary residence would be exempt from paying succession stamp duty, even if the property was not previously the deceased person’s main residence.

The Labour Party is also proposing that succession tax on additional inherited properties be deferred until the property is sold, allowing heirs to pay tax only once they receive proceeds from the sale.

Dr Abela claimed the PN’s proposal, could result in higher taxes when inherited properties are sold. He cited hypothetical examples involving a €300,000 property, saying Labour’s proposal would result in lower tax payments compared to the PN’s approach.

Other proposals announced include maintaining tax exemption status for homes where elderly parents had temporarily moved into care homes or with relatives before their death.

A future Labour government would also remove causa mortis tax on part of non-matrimonial property inherited between spouses, exempt parents inheriting a deceased child’s residence from stamp duty, and increase the stamp duty exemption on property donations from parents to children from €250,000 to €1 million per child.

Additionally, parents helping first-time buyer children by converting properties into separate residences could receive a 50% VAT refund on renovation works.

Dr Abela described the proposals as “socially just”, while arguing that the Nationalist Party’s measures could create additional financial burdens for families.

#MaltaDaily