Malta Trusts and Foundations: A Conversation on Modern Private Wealth Structuring

Malta’s Trusts and Trustees Act (Cap. 331) introduced a robust framework reflecting both civil and common law principles.

“A Maltese trust separates legal ownership from beneficial enjoyment, allowing settlors to safeguard family wealth through professional trustees subject to MFSA supervision.”
Trusts may be discretionary, fixed-interest, purpose, or unit trusts, and are widely used for succession, business continuity, and asset protection.

Under the Second Schedule to the Civil Code, Maltese foundations combine the governance stability of a legal person with the legacy aims of a trust.

“Foundations in Malta can be established for private benefit — similar to a trust — or for public purpose, serving philanthropic or charitable causes.”
They can hold family assets, shareholdings, intellectual property, or endowments, while enjoying separate legal personality distinct from their administrators.

All professional trustees and administrators are authorised by the MFSA and must comply with due diligence, segregation of assets, and anti-money-laundering obligations.

“This ensures that family and philanthropic structures created in Malta meet the highest international compliance standards, while remaining administratively efficient and cost-effective.

Malta’s trusts and foundations are increasingly being used by:

• Family offices as multi-generational holding or governance vehicles;
• Entrepreneurs planning international succession and exit strategies;
• Philanthropists establishing charitable foundations aligned with ESG and impact goals.

“Malta’s framework has matured from private use to institutional-grade governance. Today, global families see Malta not just as an offshore jurisdiction but as an EU-regulated, substance-based domicile.”

• EU jurisdiction with a trust law recognised under international conventions.
• Civil and common law compatibility, allowing use by both European and Commonwealth families.
• Tax transparency: trusts and foundations can opt for transparent or taxed status depending on residence of beneficiaries.
• Continuity and flexibility for family governance and philanthropy under one jurisdiction.

‍

The Vision 2050 policy framework aims to position Malta as a European centre for family governance and philanthropy.
Reforms to the Foundations Regulations and Beneficial Ownership Register continue to balance transparency with legitimate privacy for international families.

“The evolution of Malta’s trusts and foundations reflects a mature jurisdiction — trusted, compliant, and adaptive to the global wealth landscape.”

Our team advises on:

• Drafting trust deeds, foundation statutes, and governance charters;
• Registering foundations and trusteeship licences under MFSA rules;
• Coordinating cross-border structuring with tax, estate, and succession planning;
• Advising philanthropic, charitable, and impact foundations; and
• Ensuring compliance with AML/CFT and economic substance regulations.

We bring over 25 years’ experience advising families, trustees, and fiduciaries from Europe, the Middle East, and North America.

‍Priscilla Mifsud Parker is a Partner at Chetcuti Cauchi Advocates, heading the firm’s Private Clients and Family Office Practice. She advises international families, trustees, and fiduciaries on wealth structuring, succession planning, philanthropy, and family governance. Priscilla is also a director of a licensed trustee and foundation administrator under the Trusts and Trustees Act (Cap. 331), regularly contributing to STEP and international fiduciary publications.