Can I be personally liable for unpaid VAT of my Malta business?
- 20.08.2026
I want to transfer some of my shares in a Maltese company to a family member as part of succession planning for the business. I want to understand whether this kind of share transfer actually triggers stamp duty, and whether being a transfer to a family member changes anything about the tax treatment.
Generally, yes, transfers of shares in a Maltese company are subject to duty under the Duty on Documents and Transfers Act, Chapter 364 of the Laws of Malta, typically calculated based on the real value of the shares being transferred, meaning a transfer to a family member is not automatically exempt from duty simply because of the family relationship, though Maltese law does provide specific relief and exemptions in certain defined circumstances, including some provisions specifically relevant to intra-family transfers and succession planning within family businesses, which may reduce or in some cases eliminate the applicable duty depending on the precise structure and relationship involved. Given the genuine value in potentially qualifying for a specific applicable relief rather than defaulting to standard duty rates, and given how the correct valuation of private company shares for duty purposes can itself involve genuine complexity, it would be important to have your specific transfer properly structured and assessed by an accountant or tax advisor before proceeding, since the way the transfer is structured, including timing and the specific transfer mechanism used, can genuinely affect the applicable duty treatment. Given both the financial significance of correctly minimising unnecessary duty and the importance of properly documenting the transfer for future reference regarding the shares' acquisition value, it would be worth engaging a lawyer or notary alongside your accountant to properly structure and execute this family share transfer.
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