Setting up a Private Trust Company in Malta

The concept of a Private Trust Company (PTC) is relatively new to Maltese legislation, formally introduced into Maltese law in 2014 under the Trusts and Trustees Act. It has created a clear legal framework for families to establish their own trustee company. This development builds on Malta’s long-standing trust tradition, offering a modern and flexible alternative to professional trustees within a regulated environment.

A Private Trust Company is a limited liability company established to act as trustee for one or more family trusts, allowing settlors to appoint trusted individuals - often family members or advisors - as directors. This structure preserves the core trust relationship between settlor, trustee, and beneficiary, while introducing a formal corporate entity to administer the trust.

A PTC enables the creation of a legal entity that holds and administers trust property for the benefit of others, with the following key roles:

The Settlor: The individual who establishes the trust and contributes the assets to be held by the PTC.

The PTC (Trustee): A corporate entity that holds legal title to the trust property and administers it according to the trust deed and fiduciary obligations.

The Beneficiary: The person entitled to benefit from the trust, either through a vested right or at the discretion of the trustee.

The trust deed remains central to the structure, outlining the responsibilities of the PTC and the rights of the beneficiaries.

With the legal framework in place, families can proceed to establish a Private Trust Company in Malta by considering key governance, regulatory, and succession factors such as:

• Control Over Trust Administration: Appoint family members or advisors as directors to have a say in the decisions affecting the family trusts.
• Confidentiality and Privacy: Enhance privacy by retaining mainly the family as being involved in trust management.
• Cost Efficiency: Avoid recurring trustee fees with a tailored, long-term solution.
• Succession Planning and Continuity: Ensure structured wealth transfer and administrative stability.
• Regulatory Simplicity: Operate through recognition without the need for a full MFSA authorisation under clear rules.
• Integration with Family Offices: Consolidate governance and asset management under one structure.

A Malta Private Trust Company offers families direct control over trust decisions, cost savings, enhanced privacy, and a streamlined setup process - often completed within two months. Operating under a clear regulatory framework, it provides a more flexible alternative to other trustee arrangements.  

While the benefits are substantial, families should be aware of the need to appoint qualified directors (including a trust expert), maintain compliance with MFSA rules, and manage the administrative responsibilities of a corporate entity.

Malta’s Private Trust Company framework empowers families to manage their trusts with autonomy, privacy, and long-term vision. With a clear legal structure and minimal regulatory burden, PTCs offer a compelling alternative to traditional trustees - ideal for those seeking a bespoke, family-led approach to wealth and succession planning.

For tailored advice on setting up a PTC in Malta, contact our Corporate & Trust Services team.

Our Malta trust lawyers play a crucial role in helping our clients establish and manage trusts effectively, ensuring asset protection, tax efficiency, and smooth succession planning. Our team of family trust lawyers has extensive experience setting up family trusts in Malta and, through its multidisciplinary setup, provides the full spectrum of legal, tax, compliance and family office advisory services that are critical to the effective operation of family trusts. We typically assist clients with the following:  

• Setting up companies to act as the PTC: Advise on the setup and operation of Malta companies operating as PTCs.
• Legal Advice: Advise on the requirements and the steps of recognition process and ongoing obligations for PTCs.
• Setting up trusts: Drafting trust deeds, appointing trustees, and ensuring compliance with Maltese trust law.  
• Asset protection: Advising clients on how to protect their assets from potential creditors, tax liabilities, and other risks.  
• Estate planning: Helping clients structure their assets to minimize inheritance tax and ensure a smooth transfer of wealth to beneficiaries.  
• Tax planning: Identifying and implementing tax-efficient strategies for trust assets, including capital gains tax, income tax, and inheritance tax.
• Administration and management: Providing ongoing administrative and management services for trusts, including record-keeping, financial reporting, and compliance with regulatory requirements.  
• Litigation and dispute resolution: Representing clients in legal proceedings related to trusts, such as disputes between beneficiaries or challenges to the validity of a trust.  

Our trust lawyers actively participate in Malta trust law developments and in the public-private efforts to keep developing Malta as a foremost trust jurisdiction. Our Senior partners Dr Priscilla Mifsud-Parker and Dr Jean-Philippe Chetcuti have served as chairpersons to the Malta branch of STEP, the Society of Trust & Estate Practitioners. Dr Priscilla Mifsud-Parker continues serving the Malta branch of STEP as Technical Chair.

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