Malawi Inheritance & Gift Tax Guide 2026

Overview — Inheritance & Gift Taxation

Malawi has a favourable tax regime for wealth transfer: there is no estate duty, inheritance tax, or death tax. However, lifetime gifts may be subject to capital gains tax if the asset has appreciated in value. The absence of inheritance tax makes Malawi an attractive jurisdiction for holding assets, though other tax considerations (such as CGT on eventual disposal by heirs) apply. Upon death, there is no deemed disposal of assets for tax purposes — the heir inherits the deceased's cost base. Succession is governed by the Wills and Inheritance Act for those with a will, and by customary law for those who die intestate in certain circumstances.

Gift Tax — Lifetime Transfers

Malawi does not have a specific gift tax. However, if an asset that has appreciated in value is gifted during the donor's lifetime, the donor may be liable for capital gains tax on the deemed disposal at market value. The recipient inherits the donor's cost base for future CGT purposes. Cash gifts are generally not subject to tax. Gifts between spouses may be exempt from CGT.

No Tax on Death

Assets transferred upon death are not subject to inheritance tax, estate duty, or any death tax. The heir receives the asset at the deceased's cost base for tax purposes. This means there is no step-up in basis to market value at date of death. If the heir later sells the asset, capital gains tax will be calculated on the gain from the deceased's original cost base to the sale price.

Wills & Probate

Having a valid will ensures assets pass according to the deceased's wishes. A will must be in writing, signed by the testator in the presence of two witnesses. Probate is the legal process of recognising the will and granting authority to the executor to distribute assets. For those who die without a will, the estate is distributed according to the Wills and Inheritance Act or customary law.

FAQs

Do I need to pay tax on inherited property if I sell it?

Yes, if you sell inherited property, CGT at your marginal rate applies on the gain (selling price minus the deceased's original cost base). There is no step-up in basis to the date of death value.

Is there a way to transfer assets to family tax-free?

Cash gifts are generally not taxable. For appreciated assets, transferring at death avoids immediate CGT (but the heir inherits the low cost base). Lifetime gifts may trigger CGT on the donor.

Does Malawi recognise foreign wills?

Foreign wills may be recognised but must go through the probate process in Malawi to be effective for Malawian assets.

Disclaimer

This guide provides general information about Malawian inheritance and gift tax for the 2026 tax year. Succession law is complex. Always consult with a qualified Malawian lawyer or tax advisor for advice specific to your situation. InvestmentKit does not provide tax or legal advice.