By virtue of Act XIII of 2024 – ‘Budget Measures Implementation Act, 2024’, Article 35 of the Duty on Documents and Transfers Act (Chapter 364 of the laws of Malta) has been supplemented by new sub-articles (9), (10), (11), (12) and (13), dedicated to transfers causa mortis of qualifying agricultural land.
Pursuant to the newly implemented sub-articles, no duty shall be levied on the transfer causa mortis of ‘qualifying agricultural land’, defined as immovable property situated in Malta which is certified by the Ministry for Agriculture, Fisheries and Animal Rights as land which, at the time of the transfer in question:
(a) is an agricultural activity as defined in the Agriculture Act, undertaken by the heir or one (1) of the heirs who classifies as a professional farmer and/or is being inherited by an heir who is himself a professional farmer as shall be established by the Minister responsible for agriculture by means of the publication of a notice in the Gazette; or
(b) is leased in accordance with the provisions of the Agricultural Leases (Reletting) Act and is registered with the competent authority responsible for the agricultural land lease and ownership register.
In order to obtain the aforementioned certificate, a site plan signed by an architect from the Land registration Agency is required and an application form is to be submitted using the following website link: https://www.servizz.gov.mt/en/Pages/Environment_-Energy_-Agriculture-and-Fisheries/Agriculture/Agriculture/WEB-04111/default.aspx
In order to benefit from the exemption of tax on the transfer causa mortis of the qualifying agricultural land, this certificate shall be presented with the deed causa mortis drawn up in accordance with Article 33 of Chapter 364 to the Commissioner for Revenue, as well as any other documentation required by the Commissioner.
Notwithstanding the above, the legislature has also implemented a clawback in Article 35(12) which provides that the exemption shall be granted on condition that before the lapse of five (5) years from the date of the transfer causa mortis, no transfer inter vivos is made of the qualifying agricultural land in question or of a part thereof. This clawback does not apply where the qualifying agricultural land is assigned to any of the co-owners who is himself a professional farmer by deed of partition.
An exemption may be withdrawn by means of a declaration of a transfer causa mortis made in accordance with Article 33 of Chapter 364 that modifies the original causa mortis declaration in which the exemption had been requested. Payment of the duty on that transfer with interest at the prescribed rate shall run as from the date of the first anniversary of the transfer causa mortis.