Exceptional sales of oils, gas and other natural resources have been creating significant wealth across the Mediterranean region. Taking into consideration Malta’s proximity as well as strong commercial and cultural attachments to its neighbors, demand from such countries for wealth management services are, not surprisingly on the increase.
As part of the revision of the legislative landscape, and a fundamental instrument in attracting wealth management activities to Malta, one finds the Malta Trust and Trustees Act, which came into force in January 2005. This new act has created a more simplified and efficient trust regime, in addition to offering greater flexibility and a high standard of certainty to international clients. The new act allows the holding of any property for any person through the elimination of discrimination based on residence and nationality. In addition, Malta’s advantageous taxation regime is a contributing factor to the attractiveness of this financial instrument. It goes without saying that the impact of taxation on trusts will depend on a number of factors, which include the residency status as well as they type of assets of the beneficiaries. It is nevertheless noteworthy that in accordance with Maltese tax law, income attributable to a trust is not taxable in the hands of the trustee if it is distributed to a beneficiary but is charged directly to the beneficiary upon distribution of income. If all the beneficiaries of a trust are not resident in Malta, and provided that all the income attributable to a trust does not arise in Malta, no tax will be due by the trust or by the beneficiary in Malta. This is due to the fact that non-residents are not subject to tax in Malta on income which has not arisen in Malta.
Our team of professional including tax advisers and accountants carries a strong track record in the structuring of customized solutions. We will facilitate and conduct immediate and effective meetings with the relevant authorities, as well as the offering of legal certainty.