Benefits of Malta Trust & Foundation

Benefits of Malta Trust & Foundation


Wealth Management & Trusts in Malta

Since Malta’s accession to the EU in 2004, Malta has emerged as an attractive jurisdiction for the establishment of international corporate holding structures, to be used in multinational groups, owner-managed companies as well as the holding of assets for High Net Worth Individuals. Worthy of note is the fact that in the last decade Maltese legislature has been very active in the area of fiduciary obligations, specifically those resulting from the creation of trusts and foundations.

Benefits of Trusts in Malta

  • One of the few civil law jurisdictions that has developed its ow domestic trust law
  • Recognitions of trusts set up under foreign laws
  • Offering the set-up of domestic trusts and foundations
  • Legislation published in English
  • High professional standards with many accountants, bankers, lawyers, notaries and investment advisors holding overseas qualifications and having overseas experience
  • Fast-track authorisation for trustees licensed in other (approved) jurisdictions
  • English-speaking country with a pro-business government

Benefits of Wealth Management in Malta

  • EU and eurozone location
  • Multi-disciplined advisors able to adapt to the changing needs of High Net Worth Individuals (HNWIs)
  • Sound and sophisticated banking system
  • Fast-track authorisation for Professional Investor Funds (PIFs)
  • Flexible investment structures (SICAVs, trusts, partnerships, etc.)
  • A reputable stock exchange
  • One of the only civil law jurisdictions to have successfully developed a trust concept by integrating it with Roman law sources
  • Recognition of foreign trusts
  • Offering the set-up of both trusts and foundations
  • A stable macroeconomic environment


INVESTMENTS in Malta: The Complexity of Simplicity

Corporations, Entrepreneurs, Families, HNWIs, Individuals, with our advice and support, find in Malta a dedicated, professional and safe Banking and Finance system within legal, tax, financial regulations suitable for business environment and wealth & assets protection

These Finance Services’ solutions for Investments in Malta, meet the clients’ needs in a stable, safe and growing economy country, member of Europe and Commonwealth as well

Behind these words , there are three basic concepts :

  • wealth protection
  • asset growth
  • income from capital

From the real estate to the financial market , through sophisticated solutions for Investment Protection & Management , we can guide you on the best way to go

MALTAway allows you to find in Malta a unique investments solution that combines:

  • legal vehicles
  • low cost structure and tax
  • efficient financial instruments
  • professional advice

to protect and growth of your WEALTH and ASSET in a jurisdiction fully compliant with the OECD and Europe regulations, placing itself at the top of global stability and fiscal efficiency


Be aware , open a bank account in Malta as NON-RESIDENTS , is a long, demanding and selective process. We can be your Introducer and Sponsor , first checking with you that there are the conditions to proceed without wasting valuable time

Of the 22 banks authorized to conduct business in Malta , three are owned Maltese , 19 are foreign banks .

The banking system consists of the Central Bank of Malta and the ” Malta Financial Services Authority ” ( MFSA ) , an autonomous body established in 2002 legally .

The Maltese Government has launched a legislative reform aimed at transforming the island from offshore center to financial center with a high global standard of banking, financial and insurance services as well.






Malta Trust

Malta Trust

MALTAWAY offers legal advisory and an open access to a wide set of legal vehicles to protect your wealth and your asset

Means of establishment

A trust may be created unilaterally or bilaterally, by oral declaration or in writing. A unit trust must always be created in writing.

The Settlor

The settlor is the person who sets up the trust. The settlor must be of age, have full capacity to contract and a free disposition of the assets settled on trust. While imposing fiduciary obligations upon the trustee in favour of the beneficiaries, trusts do not leave the settlor with any rights in relation to the trust property – except as specifically provided for in the Trusts and Trustees Act. The Trusts and Trustees Act lists the settlor’s rights (which may be supplemented by the trust deed) as follows:

  • The settlor has the power to seek court directives as to trust validity
  • The settlor has the right to a variation of terms and revocable trusts where the Trust Deed so provides
  • In cases of trust termination, interest lapses or no existing or possible beneficiary, the trustee holds the trust property for the settlor (or his or her heirs)
  • It is the trustee’s duty to provide the settlor with information, subject to the terms of the Trust Deed.

NEW: The settlor may reserve or grant himself:

  • Any beneficial interest in the trust property
  • Any power to appoint, add or remove trustees, protectors or beneficiaries
  • Any power to appoint an investment adviser or investment manager

The Protector

The protector is typically a person who is in a trustworthy position (e.g. the family lawyer). The protector may also act as investment advisor. Subject to the trust terms, the protector typically has the power to:

  • Appoint new and/or additional trustees
  • Remove trustees
  • Require trustees to obtain the protector’s discretion (including approval) in relation to particular matters e.g. purchase /sale of trust property.

The Beneficiary

The beneficiary is the person who may benefit from the assets of the trust. All beneficiaries have to be mentioned by name or are ascertainable by class or by relationship to a person alive or dead. For instance, children not yet born or conceived may be potential beneficiaries. The rights of the beneficiary are personal and are regarded as movable property. Subject to the trust deed, the beneficiary may sell, charge or deal with his or her interest in any manner, provided that this is done in writing.

The beneficiary has the right to information from the trustee and may seek court directives regarding the validity of the trust. The beneficiary may also disclaim his or her interest, or part thereof.

NEW: all the beneficiaries who are in existence and have been ascertained, provided that none of them is interdicted or a minor, may request the trustee to terminate the trust and distribute the trust property. The new amendments preclude this rule from applying in the case of protective trusts.

Trust Deed

The Trust Deed is the instrument whereby the trust is created and includes the terms of the trust and may also be in the form of a unilateral declaration of trust. For example, a Trust Deed may provide for the addition of new beneficiaries (e.g. for unborn children) or the exclusion of a specific benefit to certain beneficiaries under conditions clearly stated in the Trust Deed.

Letter of Wishes

The settlor can guide the trustee in a separate letter of wishes on how the trustee should exercise his discretion. Depending on the relationship between the settlor and the beneficiaries, the settlor can inform the beneficiaries of this letter, however, he/she may also choose not to disclose this letter to the beneficiaries. A letter of wishes is not legally binding on the trustee, but rather constitutes general guidance on a settlor’s wishes.

Legal Form

A trust does not have its own legal personality. Trusts are not registered anywhere and there are no formalities for the annual maintenance of trusts other than statutory obligations that are imposed on trustees in the administration of trusts (for example the duty to prepare accounts).

Set-up time

There are no statutory restrictions that could delay the setting up of a trust in Malta. Therefore, the time required depends on the particular circumstances and mainly relates to the drafting of the Trust Deed.


The Malta trust has been amended to extend the permitted duration to 125 years (formerly maximum duration was 100 years), however, it can be terminated earlier if all beneficiaries acting in unison demand termination, which the trustees must accept under the conditions outlined in the Trusts and Trustees Act. With most trust deeds it is usual for the trustees also to be able to bring the trust to an end during the trust period.

Ensuring trustees’ performance

Professional trustees are licensed by the MFSA, which has also issued a code of conduct to provide guidance to trustees as to the standards required under the Trusts and Trustees Act and other financial services legislation, as well as to the best practice in the industry. Trustees must exercise their fiduciary duties prudently and competently and, subject to the terms of the trust and the provisions of the Trusts and Trustees Act, consider the rights of all beneficiaries when making decisions affecting the administration of the trust.

If a trustee fails to administer a trust in accordance with the law and the respective trust deed, the trustee is liable for such a breach and can be sued for it.

NEW: the amendments include:

  • trustees have the duty to avoid any conflicts of interests
  • upon accepting appointment, trustees are duty-bound to draw up a written inventory of the trust assets and declare it includes all the trust property of which the trustees are aware
  • trustees are obliged to keep accounts and records of their trusteeship for at least 10 years from the date of termination of the trust/trusteeship

(Excerpt from the FinanceMalta Wealth Management Sector Guide 2015-2016)

MALTA is fully OCSE and EU complaiant with a frontier market growth rate

Malta is this year expected to register the fastest growth rate in the EU, with property prices rising year after year and local banks recording bigger turnovers.

Maltaway is your access to the malta world…business in the sunshine

However, over the years Malta has gained an undesirable reputation as an offshore haven for all the hot money within the eurozone.

Since joining the single currency in 2008, successive governments have championed an investor-friendly economy, to the degree that other EU countries, including Germany, France, the UK and Italy, view Malta as a tax haven, similar to Luxembourg.

On a global level, this race to the bottom often irks larger economies and the EU’s economic powerhouses are less than pleased with Malta’s lax tax regime. This has led Germany and other countries to attempt to curtail Malta’s tax benefits.

Traditionally dependent on tourism and manufacturing, the Maltese economy has become service-based, with an emphasis on financial services and banking.

In order to maintain a competitive edge, Malta offers wealthy individuals and corporations advantageous tax rates, using tax breaks to attract investment or hot money, which could originate from criminal activities.

But what makes Malta so attractive?

The law

Maltese legislation on banking, mutual funds, insurance and trust services underwent an overhaul upon EU accession in 2004 and although Malta has moderately high internal taxes, the country offers low-tax regimes to companies and individuals.

Malta shrugged off its reputation as a fiscal paradise by adopting a “full-imputation” tax system where corporate profits are taxed at 35%.

However, Maltese registered companies do not pay inheritance tax or wealth tax. Moreover, companies are exempted from paying an annual property tax and other benefits include zero tax on interest and dividends.


Companies registered in Malta are considered as resident and domiciled in Malta. But companies incorporated outside Malta are considered resident in Malta only if the management and control of the company is exercised in Malta.

The term ‘management and control’ is not defined in Maltese tax law but if a company’s board meetings and general meetings are held in Malta the Inland Revenue Department would consider the company as resident in Malta.

Such companies are subject to tax on income arising in Malta and foreign income – excluding capital gains – received in Malta. The same applies to individuals who are resident but not domiciled in Malta.

The statutory rate of tax for corporations is 35% and when dividends are distributed to shareholders out of the company’s taxed profits, it carries an imputation credit on the tax that has already been paid by the company. After the tax refund, a shareholder’s tax burden decreases to 0% – 5%.

Under Malta’s tax law all income coming from a company that qualifies as a “participatory holding” company also qualifies for a full refund of the taxes paid by the company, when distributions are paid back to the company’s shareholders.

However, there is a Value Added Tax rate of 18% applicable to those companies that are trading within the EU.

Income or gains from participating holdings in foreign companies are exempt from tax and there is no tax on gains realised from transfers of corporate securities by a non-resident, as long as the recipient is the beneficial owner of the gains and the securities are not held in a company whose assets consist principally of immovable property in Malta.

Corporate tax

International Trading Companies, International Holding Companies, companies licensed under the Malta Freeports Act and the Business Promotion Act may benefit from tax holidays of 10 years or more.

International Holding Companies operating foreign income account where they receive income from abroad, pay 35% tax on net income but can make use of four levels of abatement of the tax.

A Maltese registered company owning 10% or more in a foreign company effectively pays zero tax.


Malta does not keep a public register of trusts and private foundations. Under the Trusts and Trustees Act, foreign owned trusts are exempted from paying tax. Maltese residents can also form trusts but the trust is a taxable entity unless both the beneficiaries and the income are foreign, in which case the trust remains exempt from tax.

Furthermore, foreign trusts do not have to file tax returns given that a Professional Trustee company which is acting as their trustee makes an annual declaration of conformity with the law.

In order to receive tax-exemption, registration is obligatory.


For tax purposes, foundations are treated in the same manner as a company but these could also be taxed in the same manner as a trust in accordance with the applicable provisions dealing with trusts which would be applicable to a founder, the foundation and the beneficiaries.

The law also allows the establishment of segregated cells within a foundation in such a way that the foundation may be divided into various cells and each cell would, for tax purposes, be deemed to be a separate foundation and taxed accordingly.

maltaway highway stairway

MFSA MALTA: proposta di regolamentazione per i TRUSTEES dei TRUST famigliari

The MFSA has issued a Consultation Document on the Proposed Rules for trustees of family trusts.



MALTAway ti offre assistenza per investimenti e protezione del patrimonio con Trust, Fondazioni, Holding e il servizio di Directorship (con persone Italiane residenti a Malta per essere compliant con le norme fiscali internazionali) come NED (Non-Executive Director), Trustee e Foundation Administrator/Representative

Cosa fanno e come agiscono:

Both trustees and administrators are subject to fiduciary obligations which are duties of trust and confidence that are imposed on a person in circumstances where that person, the fiduciary, is bound to act for the benefit of another. A fiduciary is subject to duties of care, honesty, accountability and loyalty when exercising his functions and cannot allow personal interest to conflict with his duties