Malta is one of the most popular European destinations for establishment of alternative investment funds, including hedge funds, private equity, real estate funds and other types of secure investment structures.
Trusts are also a great tool for compliant international tax planning and for safeguarding your privacy. A trust offers a high level of privacy because they are not found on any public register, in contrast to most corporate structures.
An important and efficient legal vehicle, which is available under Maltese laws, which may be utilized for an efficient tax planning, is the creation of a Maltese trust that is governed by the Trusts and Trustees Act. Without trusts, many companies that are directly owned by private clients or corporate groups will not provide the adequate tax efficiency sought. Trusts are peculiar to systems of law based on Common Law and are not generally found in civil law countries. Malta, a civil law country has been innovative in its development as a prominent Financial Services jurisdiction and is an exception to this rule by introducing trusts in its legislative framework.
The manner in which trustees are obliged to carry out their fiduciary duties is the core of the trust. The trustees owe duties to the beneficiaries in relation to the trust fund. The Trusts and Trustees Acts, provides for limited situations in which trustees who are incapable of performing their duties can be removed from office and other trustees may be appointed in their stead. There are various duties a trustee may owe during their tenure in office, and the terms of the trust must always be taken into consideration when administering and managing a trust.
The trust services offered by SIGTAX Ltd. for our clients in Malta include the setting up of discretionary trusts, fixed interest trusts, accumulation and maintenance trusts and revocable trusts.