Malta allows for the incorporation of both trusts and foundations. Our trust experts in Malta are well-versed in the country’s legal and regulatory framework regarding trusts. They can provide a comprehensive understanding of the relevant laws, regulations, and requirements that need to be met when establishing a trust. If you are planning to set up a trust in Malta, the services of our agents are at your disposal.
Quick Facts | |
---|---|
Legal framework | Governed by the Trusts and Trustees Act in Malta. |
Types of trusts | – Discretionary trusts; – Charitable trusts; – Fixed interest trusts; – Unit trusts; – Spendthrift trusts; – Accumulation and maintenance trusts. |
Trustee requirements | Can be an individual or a corporate entity to set up a trust in Malta. |
Registration | With the Malta Financial Services Centre. |
Duration of trusts | According to the Maltese Trusts and Trustees Act, it can stay in effect for a maximum of 125 years from its creation date. |
Trust property | Assets can include: real estate, investments, and more. If you are interested in setting up a trust in Malta, the services of our agents are at your disposal. |
Protector role | Optional role to oversee trustee actions. |
Tax incentive | The money a trust must pay as income tax is a set amount of Lm200 (about US$600) each year. |
Tax returns | Trusts are not required to file tax returns. |
Succession planning | Trusts commonly used for wealth transfer and protection. |
Anti-Money Laundering Compliance | Trustees must adhere to AML regulations. |
Family trusts | Common for preserving family wealth and assets. |
Residence of trusts | Trusts can be established for residents or non-residents. |
Professional advice | We offer proper trust establishment and management. If you are interested in setting up a trust in Malta, please get in touch with us. |
Benefits of Maltese trusts | – Asset protection; – Tax efficiency; – Estate planning. |
Malta follows the rules of the Hague Convention on the Law Applicable to Trust and their Recognition from 1984. Initially, Malta only allowed trusts for non-residents in offshore situations. However, in 1994, the Recognition of Trusts Act expanded this, making Malta a full-fledged trust jurisdiction. In 2014, Malta updated its trust laws to align with global changes. If you have questions about trust legislation in Malta, please get in touch with our company incorporation specialists in Malta.
A trust instrument, also known as a trust deed or trust agreement, is a legal document that establishes the terms and conditions of a trust. It is a crucial component of creating a trust, as it sets out the rules and guidelines that govern how the trust will operate and how its assets will be managed and distributed.
The trust instrument typically includes the following key elements: identification of parties, trust property, purpose, trust terms and conditions, duration of the trust, revocability or irrevocability, trustee’s powers and duties, etc.
The trust instrument is a legally binding document and serves as the foundation for the entire trust arrangement. It provides clarity and certainty, guiding the trustees in fulfilling their obligations and ensuring that the trust operates following the settlor’s intentions and the best interests of the beneficiaries. If you are interested in registering a trust in Malta, please consult with our agents. They will not only guide but also practically assist you throughout the process.
Below is a video presentation about trusts in Malta:
Under Maltese law, a trust is essentially a binding agreement where one or more individuals or entities, known as trustees, commit to managing and overseeing a specific property, asset, or funds for the benefit of third parties, referred to as beneficiaries. This agreement outlines the terms and conditions governing the trust, specifying that the legal ownership of the property is transferred from the settlor to the trustees for the advantage of the beneficiaries.
In simpler terms, a trust exists when a person – the trustee – holds property either as an owner or with vested rights, with the obligation to handle it for the benefit of other individuals, known as beneficiaries. These beneficiaries may be identified or not yet determined, and the trust is not created solely for the trustee’s benefit or charitable purposes. It’s important to note that a trust is not a distinct entity, it represents a legal relationship without an independent legal personality. The assets within the trust, distinct from those of the settlor, trustee, and beneficiaries, ensure enhanced protection.
Setting up a trust in Malta requires a trust deed that must mention all persons. It also stipulates who the trustee is and who the beneficiary is and the trust fund or trust settlement that represents the property to be held by the trustee. The property can be represented by any assets, movable or immovable.
The difference between usual Maltese companies and trusts is that the trust makes a separate distinction between the legal and the beneficial owner of a property. If you have any additional questions in this regard, please consult with our company formation specialists in Malta.
Trusts can be established in Malta under the Maltese statutory regulations and Trust and Trustees Act in Malta. Maltese companies usually offer administrative support to trusts. The Malta Financial Services Authority (MFSA) is the main regulatory body that authorizes and supervises trustees.
The MFSA also decides the services Maltese companies can provide to trusts and the terms they will be provided under. If companies want to provide trustee services, they must apply with the MFSA requesting authorization to perform corporate professional trustees’ duties.
The money a trust must pay as income tax is a set amount of Lm200 (about US$600) each year. However, Malta also has double tax treaties with other countries that can influence the tax rates for Maltese trusts.
The Malta Financial Services Authority (MFSA) can step in to protect the public’s interests by making sure trusts follow the local rules. MFSA can tell trustees what to do, get experts to help trustees, and even manage a trustee’s things if needed, all for the good of the public. Auditors checking trusts must tell the MFSA if they find anything not right, especially if trustees are not following the laws and rules they’re supposed to. If you have additional questions in this regard, we can assist you. Furthermore, if you are interested in opening a company in Malta, our company formation agents are here to assist you.
The changes made in 2014 to the Trusts and Trustees Act brought in the concept of an enforcer specifically for charitable trusts. For non-charitable trusts, the responsibilities of an enforcer can be taken on by the beneficiaries. The enforcer plays a crucial role in ensuring that the trustee follows the instructions laid out in the trust deed and actively works in the best interests of the trust. If you are planning to open a trust, you are welcome to get in touch with our company incorporation agents in Malta. They can also answer if you have any additional questions about the types of trusts.
Yes, private trusts are recognized in Malta and can be established with the help of a notary deed. Small-scale trusts are usually interested in this type of trust, especially if the parties involved have a collaboration or relationship of at least 10 years.
Trusts in Malta are not required to register with the government, complete privacy is maintained, and their records remain inaccessible to the public. If you are planning to set up a company in Malta, the services of our agents are at your disposal.
In comparison to other countries, the administration and setup costs for establishing a trust in Malta are significantly lower. Audit fees, legal fees, and trust management fees are considerably less in Malta. A fully-fledged Maltese trust is less expensive to establish than a similar trust in any other country. While the country’s startup costs remain significantly lower, Maltese professional institutions have maintained an unrivaled global reputation. In principle, those interested in trusts in Malta are thinking about the beneficial tax system. In addition to these issues, domestic and practical issues are also discussed. Here are some details:
So, there are plenty of reasons why trusts in Malta can be registered. As soon as you decide on the goal for the Maltese trust, we invite you to talk to our local agents and find out all the formalities. Ask us about fiduciary services in Malta.
A settlor is a person who can create a trust in Malta and has various obligations. Among them, we mention the following:
Setting up a trust in Malta has gained popularity in recent years because it comes with some advantages:
Establishing a trust in Malta proves to be advantageous for a myriad of reasons. On the domestic front, it provides a strategic means to circumvent the delays and expenses associated with Malta probate proceedings. Additionally, trust serves as a secure mechanism for preserving assets until minors attain legal age, and it acts as a protective shield for assets in the event of the settlor’s or beneficiaries’ incapacity. Moreover, a trust in Malta enables a systematic distribution of assets to the settlor’s heirs without the immediate transfer of assets upon the settlor’s passing away, ensuring a thoughtful and gradual transition. Addressing taxation concerns, the trust in Malta offers a legal avenue to evade inheritance and estate taxes, safeguarding assets from potential claims by third-party creditors.
Furthermore, it facilitates the shifting of substantial tax burdens from the settlor to the beneficiaries, who benefit from more favorable tax conditions. In terms of investments, establishing a trust in Malta proves instruments in consolidating global investments, and entrusting their administration and management to seasoned professionals. This centralized approach enhances efficiency and strategic oversight of the trust’s investment portfolio. Establishing a trust in Malta provides a multifaceted advantage. Domestically, it offers a solution to sidestep probate delays, safeguard assets until minors reach maturity, and protect against incapacity. Overall, it serves as a comprehensive strategy for seamless wealth management, asset protection, and strategic tax planning. If you are interested in setting up a Maltese trust, our agents can help you. You can consult our company formation agents in Malta for customized assistance.
Malta continues to be on the list of those looking for stable financial markets. Business is accepted in any field of interest, as well as investments. Foreigners benefit from an experienced and multilingual workforce, but also an optimal business climate. Here are some aspects of Malta’s economy:
If you want fiduciary services in Malta and you need details about how to set up a trust in Malta, you can contact our company formation agents. We can tell you more about trusts in Malta.