Wealth Management in Malta

During the last years, Malta has become a wealth management center thanks to its wide range of investment structures that includes investment funds, trusts and a competitive taxation system. Malta has also asserted itself through its legal infrastructure and customized solutions offered to foreign investors. Malta has modified its legislation regarding the registration of aircraft and ships thus providing new investment tools for those interested in buying properties in the country. Furthermore, VAT incentives are available for those purchasing aircrafts for private use.

Malta as a wealth management center

Accountants and lawyers in Malta are highly appreciated for the services they provide to customers. Maltese lawyers and accountants are among the best in the world in their branch, which gave Malta the reputation of a secure wealth management center.

A large number of companies have chosen Malta as an operational center due to the country’s regulatory and supervisory system, when it comes to investment services. Malta’s reputation for high standards, relative low set-up costs and an educated workforce make the country an excellent wealth management center.

Investment funds in Malta

When it comes to wealth management, investment funds are among the best vehicles in Malta. There are over 500 licensed collective investment schemes (CIS) in Malta today. Among the legislation regulating investment funds in Malta are the Investment Services Act and the subsidiary legislation that allow foreign businessmen to set up professional investor funds (PIFs). Maltese funds can be registered under open-ended or closed-ended corporations, contractual funds and limited partnerships.

The investment company with variable share capital (SICAV) is currently the most employed type of investment vehicle. According to the Maltese Companies Act, funds can also be constituted as incorporated cell companies (ICC) or incorporated cell in a recognized ICC.

Trusts and foundations in Malta

In 2004, Malta has changed its Trust and Trustees Act in order to transform the country into a trust jurisdiction. According to the Trust and Trustees Act, a trust can be used as family wealth management vehicle that will provide an advantageous taxation system based on the residence of the beneficiaries.

Beginning with April 2008, the Maltese Civil Code was amended with the Second Schedule that was dedicated to foundations. According to the new legislation, one can set up a private or a purpose foundation that will allow an increased level of control of the estate compared to trusts. The following types of trusts are available for wealth management purposes in Malta:

• -       maintenance trusts;
• -       charitable trusts;
• -       discretionary trusts;
• -       fixed interest trusts;
• -       unit trusts;
• -       accumulation trusts.

Our attorneys in Malta can offer information on the types of trusts above.

Family offices as a wealth management alternative in Malta

Foreign investors who seek for more private solutions for the administration of their estate can choose family offices in Malta. The number of this type of offices has grown considerably during the last years and thus enforcing Malta as a wealth management destination especially for retired individuals. Moreover, family offices have become an attractive choice to the well-known wealth management centers because many foreign service providers have moved to the Malta and thus have expanded their services. Among these, clients appreciate personalized solutions and the fact that a smaller office will take on less clients which means more concern for their assets.

Tax planning solutions in Malta

Wealth management relies on tax planning which allows high net worth individuals to administer their estate in the best conditions in Malta. One of the best tax solution is the family business which is now regulated by the amended Business Family Act. This law now provides for a flexible approach and even tax exemptions for family businesses. Combined with the preferential residence schemes for foreign citizens, Malta has become an impressive wealth management centre with capable professionals who can offer personalized tax planning structures, in accordance with the clients’ needs.

For complete details about wealth management solutions, you can contact our Maltese law firm.