No succession tax for heirs of agricultural land who are professional farmers

The government will abolish succession tax on heirs of agricultural land that is rented to farmers.

Heirs of these agricultural plots will be exempt from inheritance taxes when they work the land themselves and are considered “professional farmers”.

Crop farmers and herdsmen earning more than €16,000 from farming are classified as professionals under new regulations published in the summer, which categorised farmers.

“Agricultural land in Malta is scarce, and it’s important that what little land remains is preserved and used,” agricultural minister Anton Refalo said, describing the measure as a way of promoting the use of Malta’s scarce agricultural land and to improve the country’s food security.

Inheritance tax for agricultural land stood at 5% of the property value. Landowners often complained they were barred from raising rents, but since 2022 it will be the Rural Leases Control Board to mediate with farmers on any proposed rental rates with published guidelines on how to value agricultural land for agricultural use.