A foundation in Malta can be easily registered, helped by one of our local specialists. Those interested in registering a Maltese foundation can get in touch with our company formation agents in Malta who can manage the formalities and procedures implicated for incorporation of such a structure
Quick Facts | |
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Definition of Maltese foundation | An organization created with specific purposes, assets, and liabilities apart from the founders and for the benefit of a person or group of persons |
Applicable legislation for foundations in Malta | – Maltese Civil Code, Article 26 of the Second Schedule, – Voluntary Organisations Act, the Foundations Regulations |
Types of foundations in Malta | Public or private |
Purposes of foundations in Malta | – charity, – philanthropy, – social purposes involving education, science, health, environment, – raising funds, etc. |
Formalities for setting up a Maltese charity | – registered address in Malta, – board of administrators, – local representative, – the purpose of the foundation through a deed of foundation |
Minimum assets for a foundation in Malta | At least EUR 1,160 |
Type of assets for Maltese charity | Money or properties |
Can a foundation in Malta have commercial activities? (YES/NO) | NO |
Local bank account for a charity in Malta | Required |
Tax benefits | No withholding taxes, no stamp duties |
Income tax for foundations in Malta | 35% |
Redomiciliation permitted | Yes, foreign foundations can be redomiciled in Malta |
Obligations of a Maltese charity | – at least 3 administrators with specific responsibilities, – raising funds for different social projects |
Managing personal assets through Maltese foundation | Yes, a very useful tool for estate planning and better control of assets |
Services provided by our Maltese representatives | – drafting the documents of the Maltese foundation, – support for registration, – collaboration with the relevant institutions |
Foundations fall under the regulations of the following:
Foundations may be established by natural persons or corporations in Malta. The law recognizes two types of foundations in Malta:
A Maltese foundation can be established by public deed or by will. The first one must be published by a notary and be registered with Public Register in Malta. The conditions to set up a foundation in Malta are:
The following information must be provided when setting up a foundation in Malta:
Foreign corporations or individuals must appoint Maltese local agents who will represent the foundation. When setting up a foundation in Malta, the duration of the establishment must also be declared. The maximum validity term for foundations is 100 years, except for Maltese collective investment companies for which the validity term may vary.
You can ask our company incorporation agents in Malta about the registration of collective investment schemes as foundations.
In order to establish a private foundation in Malta, the name of the beneficiaries must be written in the deed of foundation. If the beneficiaries have not been mentioned in the deed, a declaration that the foundation is constituted for the benefit of others must be drawn. In this case, the beneficiaries must be indicated in other documents signed by the founder or founders.
Then, these documents must be addressed to the foundation’s administrators. In case of Maltaprivate foundations, the beneficiary statement may not be filed, the legal person being registered in its stead with the Maltese Companies Registrar.
Charitable foundations can have well-defined objectives. Some may raise funds for projects related to education, poverty alleviation, science, environment, religion, animal welfare, health, and medicine. There are also human rights foundations that raise money to help vulnerable people.
On the other hand, the Maltese foundation can register for a number of benefits, including those related to the tax system. Here are some other details about the foundation in Malta:
When you want to open a foundation in Malta, you must clearly establish its objectives. The founders are the ones who know exactly what they want to do with a Maltese foundation, and these things should be found in the documents of this entity. Here is other information:
We recommend those interested in company incorporation in Malta contact one of our specialists who can handle both the preparation of the documents and their registration with the relevant authorities. We are here if you want to set up a company in Malta.
Keeping accurate records of the charity’s assets is the first thing that a foundation administrator in Malta must consider. His or her attention also includes maintaining the control and possession of properties of a foundation and ensuring fulfillment with the charity ruling and applicable laws in Malta.
Also, everything related to the administration of a foundation in Malta involves keeping a clear line between the assets of the charity and the ones of the founders and beneficiaries, when it comes to liabilities and responsibilities.
Probably a serious reason to set up a foundation in Malta is its taxation, which is quite advantageous. In this sense, income earned by a Maltese foundation is subject to a 35% corporate tax rate. However, around 5% of the paid tax returns to the beneficiaries as a refund.
Moreover, foundations in Malta may be subject to the same taxation regime as trusts. However, there are exceptions to this rule, and here we refer to assets of Maltese foundations located outside the country, as well as the generation of incomes.
We advise you to discuss all these aspects with one of our local specialists who can also deal with company formation in Malta, including foundations.
A foundation in Malta has many advantages. One of them is related to the rather attractive tax system, with certain tax exemptions. Here are some other benefits of a foundation in Malta:
Certainly, foundations in Malta that do not generate income in this country are advantageous from a tax point of view. On the other hand, the founders of charities can be both administrators and beneficiaries, which represents another benefit.
Foundations can also be registered for structuring estate planning or other financial projects. And last but not least, the assets, responsibilities, and liabilities of a charity in Malta are separate from those of the founders.
These are some of the advantages of a Maltese foundation that you should consider if you want to register such an entity.
Our company formation agents in Malta have experience in this field. They can explain the formalities for opening a foundation in Malta. They can handle the application form on your behalf and create a foundation deed according to the established objectives. Then, they will proceed to draft the documents with relevant institutions, as well as to register from a legal point of view.
In addition to these formalities, our local agents can offer tax advice, real estate advisory, and family business review. Also, if you are a foreign national who wants to open a foundation in Malta, our agents will take care of the immigration formalities.
Malta is a small island state with several business advantages. Geostrategic position, international financial center status, and experienced workforce are other strengths of Malta’s business climate.
We also present some interesting statistics about the economic direction of Malta:
For complete information about how to set up a foundation in Malta, you can contact our company formation agents in Malta.