Malta Trust Formation

DeltaQuest can assist you in setting up your Malta trust from supporting you with the completion and filing of trust application documents to the actual creation of the trust and its efficient management. Our dedicated consultants provide comprehensive advice throughout the entire process in obtaining a Malta trust and will guide you to ensure the trust is fully compliant with relevant laws.

In order to proceed with the formation of an Offshore Malta Trust, please complete our Trust Application Form.

Conditions for a Malta Trust Formation

Legal form: The setting up of trusts in Malta is regulated by the Trusts and Trustees Act, Cap.331. Under the 2004 Act, trusts can be governed either by Maltese or Foreign Law and the trustees, if resident or operating in Malta, must be registered as an approved trustee with the MFSA. Foreign trusts may be governed by the Settlor’s choice of law in accordance with the freedom of choice allowed by the Hague Convention. Malta is a signatory of the Hague Convention on the Law Applicable to trusts, and on their recognition and the proper law applicable to a trust is decided in terms of this Convention. Where a trust adopts the Law of Malta as its proper law, it must be registered with the Malta Financial Services Authority (MFSA).

Beneficiary: The beneficiary is the person entitled to benefit under the trust or in whose favour discretion to distribute property held in trust may be exercised. Absolute confidentiality in respect of the identity of the beneficiaries of a trust is guaranteed.

Settlor: A Settlor of a trust can also be a beneficiary under the trust. The Settlor is the person placing the assets in the trust. This includes a person who provides trust property or makes a disposition on trust or to a trust. Once a trust has been created, the Settlor ceases to have any active role in the trust.

Protector: The Trusts Law also recognizes the possibility of having a Protector in the context of a Maltese trust. Subject to the terms of the trust, the Protector is deemed to have the powers to appoint a new or additional trustee, to remove a trustee, and to require the trustee to obtain the Protector’s consent before exercising a power or discretion. The Protector shall not be deemed to be a trustee.

Trustee: A trustee may be a natural person provided he is of full age and legal capacity and not under any legal impediment to so act. A trustee may also be a juridical person the objects of which include acting as a trustee. The trustee of a Maltese trust may be either a “private” or a “professional” trustee. Both classes of trustees are subject to the regulation of the Malta Financial Services Authority (“MFSA”), although it is only professional trustees that require formal “authorization” from the MFSA to act as such.

Taxation: Trusts registered in Malta pay a flat rate of two hundred Malta Liri (LM200) tax per annum on the aggregate income of the trust and on any income of the beneficiary. Trusts do not pay any annual registration fees, death duty, stamp duty or customs duty on property imported into Malta. They are also exempt from Exchange Control regulations.

Audit and financial returns: A trust is required to keep financial records, which should reflect the financial position of a company.

Registered office and local agent: A trust is required at all times to have a trust agent resident in Malta who shall be appointed by the Trustee of the Trust.

Time needed for trust formation: Usually it is 2-3 working days, and we need up to 7 working days for legalization of the documents and delivery by courier.

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