Minister for Agriculture, Fisheries and Animal Rights Anton Refalo has announced a new measure that will lead to the exemption of inheritance tax on agricultural landthat is being leased to third parties .
The minister noted that once again the government is carrying out another measure. He went on to explain how after the public consultation on the reform in the field of farming was launched, and after the Malta Agricultural Resources Agency was established last November in order to carry out the proposals that were included in the reform , now it was time for what was promised in the fourth reform to begin to be fulfilled.
He went on to explain that this measure will benefit the owner who has just inherited agricultural land that is being leased to third parties and even agricultural lands that are inherited by farmers who are considered professional farmers. Therefore, any heir who is going to inherit agricultural land that is not able to take the total possession of the land in his hands, such heir will be exempted from the inheritance tax when he declares it on the causa mortis contract.
This proposal is not only aimed at the heirs who have the land compared to third parties but it also applies to those heirs who will inherit agricultural land and themselves or any of them is considered a professional farmer.
It is worth mentioning that this measure will be applying to those causa mortis declarations where the deceased died after 1 January 2024.
“This government has worked hard so that where there is any kind of injustice towards the farm owners who are being deprived of the enjoyment of their agricultural land, it will be addressed and a balance will begin to be created between the owner and the lessee of the land,” concluded Minister Anton Refalo.
The Chief Executive Officer of the Malta Agricultural Resources Agency Marielise Tabone said that such a measure is one of the many measures that the agency will be implementing during the coming times.
She stressed that the agency will continue to work non-stop to ensure that agricultural land continues to be worked for its agricultural purpose, while ensuring food security in Malta and protecting the natural environment. She said that with this measure the farming sector will be protected in such a way that the farmer will continue to work the land he has been working for so long while justice will be done even with the owners that they will inherit agricultural land, since they will not be paying any tax on the causa mortis transfer of the same land.
