Holding Companies

Families are most protective with the holding of their investment portfolios and personal trading/brokerage accounts where capital is allocated to a dedicated Investment Holding Company and is managed either inhouse or with the help of asset managers.

Often specific assets are acquired and held by Special Purpose Vehicles (SPVs) for risk management, exit strategy and tax considerations, at times to allow for external investment while ring fencing other valuable family holdings.

A holding company may be used to hold a variety of assets, but best practice may dictate the segregation of assets by type, by purpose or by use with asset holding companies. For instance, real estate, private jets, yachts, art, antiques, and any high value assets tend to be segregated in a jet / yacht holding company, and an art holding company, and so forth.

A real estate holding company or property holding company is a company used to acquire and hold immovable assets including residential and commercial real estate holdings. Often a real estate holding company is set up in the country where the property is situated. Alternatively, for legal, estate planning or tax planning reasons, a property holding company may be situated in an appropriate jurisdiction. Often property management companies are separate from real estate holding companies.

While personal or family holding companies are used to hold the family’s personal assets, holdings of a business nature can be grouped together in a business holding company. Often this bears the name of the specific business but holds assets such as intellectual property, plant and machinery and other business assets outside the business entity itself that bears the business’s operational risks.

It is common to see all the family’s asset holding entities grouped together in a family holding company that facilitates consolidated reporting and allows for liquidity pooling and financing. A family holding company allows the family office to present a strong well capitalised front on the negotiation table and deploys capital as required, but the family holding company is rarely the actual company that signs the deal when the ‘family office’ acquires assets. The family office represents and negotiates for the family, the family holding company deploys the capital, possibly signing on the letter of intent and the appropriate holding company acquires the asset or signs up the investment.

At Chetcuti Cauchi Advocates, our Tax, Corporate and Legal Practices combine technical expertise with a practical, business-oriented approach to help clients navigate Malta’s evolving tax, corporate and legal landscape. We advise on corporate and international tax planning, ensuring compliance while optimising tax efficiency for businesses, high-net-worth individuals, and family offices.

Our services include:

• Tax advisory: Assessing eligibility, requirements, and preparing election notices to the Commissioner for Tax and Customs.
• Corporate Structuring & Cross-Border Tax Planning: Designing tax-efficient structures for multinational groups, holding companies, and investment vehicles.
• Transfer Pricing & Substance Compliance: Ensuring alignment with OECD standards and Maltese regulations.
• Tax Risk Management & Dispute Resolution: Representing clients in audits, investigations, and litigation before Maltese tax authorities.
• Personal & Family Tax Planning: Advising on succession, wealth preservation, and relocation strategies.

With decades of experience and a multidisciplinary team, we deliver tailored solutions that balance legal compliance with strategic tax optimisation. For personalised assistance, contact our Tax Team.