Malta – Trust eng

Malta Guide map engOpusGuide: Malta – Trust

Malta is a member of the EU and has an advantageous tax system which allows tax to be reduced to an effective rate of 0%. Costs relating to registering an entity in Malta are relatively low. The country’s policy is one of attracting investors from the financial sector in particular. Setting up a company in Malta takes one day.




LEGAL FORM A trust is regulated in accordance with the instructions and wishes of the settler
within established terms, as set out in the Trust deed. The trust is registered under
the MT Trust and Trustees Act, Cap. 331, without separate legal personality.
POLISH EQUIVALENT Lack of counterpart in the Polish legislation.
SPHERE OF ACTIVITIES Any legally permissible – vehicle for transfer of assets from one generation to other and protect estate from inheritance or capital gain taxes; no requirement to obtain permits (not a regulated activity).
ownership The trustee is the legal owner of the assets.
administration The management of the trust is conducted by the trustee. The trust is administrated in accordance with the instructions of the Trust deed. The trustee must at all times act in accordance with the terms of the trust.
other Possibility to appoint a protector to supervise the acts of the trustee.
USE OF TRUSTEESHIPS beneficiary Trust is created for the benefit of the beneficiary(ies) who is identifiable and ascertainable. Identification of the beneficiary must be in writing by the settlor in the letter of wishes or Trust deed.
of Trustees
There are no formal reporting requirements for trusts established in Malta. Strict confidentiality rules apply in the Republic of Malta.
MINIMUN SHARE CAPITAL No requirements for minimum share capital.
HEADQUARTERS At least one of the trustees must be a permanent resident of Malta.
TIMESCALES registration The trust must be registered in accordance with the Trust and Trustees Act,
Cap.331 and the registration is not publically available.
termination Duration is provided in the terms of the Trust deed; otherwise the beneficiaries
would be entitled to terminate the trust.
BANK ACCOUNT In any bank.
TAXES Income Trusts are not subject to the corporate income tax. However, the income earned by beneficiaries through is taxed at their hands but only with regard to sources of income located in Malta (abroad income is not subject to income tax, unless received by beneficiaries in Malta). Income gained by trust but not attributed to
the beneficiaries shall be taxed by trustees. However, there is an assumption that
abroad income and passive income was attributed to the beneficiaries. Depending
on double taxation treaty’s provisions, the beneficiaries can be taxed also at their
residence country. If a trust is registered as a company, then exemptions applicable to a company are also attributed to a trust.
Special tax regime A trust can be registered as a company, thus taxed as a company and distributions to beneficiaries are treated as dividends.
PRZEPISY ZAPOBIEGAJĄCE UNIKANIU ZOBOWIĄZAŃ PODATKOWYCH Transfer pricing documentation: NO, but the transactions must be carried at arm’s length
Thin capitalization: NO

* data binding as of 28th April 2014