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Set Up a Maltese Foundation

Updated on Friday 25th February 2022

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Set-Up-a-Maltese-FoundationFoundations are non-profit organizations that can be public or private and that can have charitable activities and more. The founders have the right to establish the purpose of the assets of a foundation. Those interested in registering a Malta foundation can get in touch with our Maltese company formation agents and ask for assistance.
 
 

The Maltese legislation on foundations

 
Foundations fall under the regulations of the following:
 
  1.  Maltese Civil Code or Chapter 16.
  2.  The Voluntary Organization Act part of the Maltese Law on Foundations.
 
 
Foundations may be established by natural persons or corporations in Malta. The law recognizes two types of foundations in Malta:
 
  1.  the public foundation established with a specific scope,
  2.  the private foundation established for a person or a group of individuals, called beneficiaries.
 

General requirements for foundations in Malta

 
A Maltese foundation can be established by public deed or by will. The first one must be published by a notary and be registered with Public Register in Malta. The conditions to set up a foundation in Malta are:
 
  • The minimum worth of assets when setting up a Maltese foundation must be of EUR 1,160 for foundations established for social purposes.
  • The name of the establishment must include the word “foundation”.
  • The assets of the foundation may consist of money or property.
  • The foundation must have a registered address in Malta.
 
The following information must be provided when setting up a foundation in Malta:
 
  • The purpose or beneficiaries of the foundations must be declared upon registration.
  • The assets constituting the foundation.
  • The board of administrators and the way it will be constituted.
 
Foreign corporations or individuals must appoint Maltese local agents who will represent the foundation. When setting up a foundation in Malta, the duration of the establishment must also be declared. The maximum validity term for foundations is 100 years, except for Maltese collective investment companies for which the validity term may vary.
 
You can ask our company incorporation agents in Malta about the registration of collective investment schemes as foundations.
 

Private foundations in Malta

 
In order to establish a private foundation in Malta, the name of the beneficiaries must be written in the deed of foundation. If the beneficiaries have not been mentioned in the deed, a declaration that the foundation is constituted for the benefit of others must be drawn. In this case, the beneficiaries must be indicated in other documents signed by the founder or founders.
 
Then, these documents must be addressed to the foundation’s administrators. In case of Malta private foundations, the beneficiary statement may not be filed, the legal person being registered in its stead with the Maltese Companies Registrar
 

Other facts about Malta foundation

 
Charitable foundations can have well-defined objectives. Some may raise funds for projects related to education, poverty alleviation, science, environment, religion, animal welfare, health, and medicine. There are also human rights foundations that raise money to help vulnerable people.
 
On the other hand, the Maltese foundation can register for a number of benefits, including those related to the tax system. Here are some other details about the foundation in Malta:
 
  1. It cannot have commercial activities unless the foundation owns a company.
  2. Malta Foundation can be involved in legacy planning strategy and wealth protection.
  3. It can also organize philanthropic events for fundraisers.
  4. Segregation of patrimony and opening a bank account are other benefits of the Malta foundation.
  5. Foundations in Malta are protected by the services of the supervisory council.
 

What are the benefits of a Malta foundation?

 
A foundation in Malta has many advantages. One of them is related to the rather attractive tax system, with certain tax exemptions. Here are some other benefits of a foundation in Malta:
  1. Are protected by laws and regulations imposed by the European Union.
  2. The administrators have the responsibility to respect the legal framework and to protect the foundation of which they are part.
  3. There are no stamp duties or withholding taxes for Maltese foundation.
  4. These entities may also open bank accounts in countries other than Malta.
  5. Segregation of patrimony is another benefit.
  6. The Supervisory Council has the power to change or remove the administrators of the foundation, if necessary.
  7. The redomiciliation of foreign foundations in Malta is possible.
 
These are some of the benefits of the Maltese foundation. If you are interested in opening such an entity, please contact our local agents. They can take care of all the formalities, in constant contact with you.
 

How we can help you open a foundation in Malta

 
Our company formation agents in Malta have experience in this field. They can explain the formalities for opening a foundation in Malta. They can handle the application form on your behalf and create a foundation deed according to the established objectives. Then, they will proceed to draft the documents with relevant institutions, as well as to register from a legal point of view.
 
In addition to these formalities, our local agents can offer tax advice, real estate advisory, and family business review. Also, if you are a foreign national who wants to open a foundation in Malta, our agents will take care of the immigration formalities.
 

Why invest in Malta?

 
Malta is a small island state with several business advantages. Geostrategic position, international financial center status, and experienced workforce are other strengths of Malta's business climate.
 
We also present some interesting statistics about the economic direction of Malta:
 
  1. Around USD 240 million was total FDI in Malta in 2020.
  2. According to the 2020 Doing Business report, Malta ranked 88th out of 190 world economies in terms of business climate and conditions.
  3. Financial and insurance is the sector that attracts the most investment in Malta. About 97% of foreign investment in this sector was recorded in 2020.
  4. There has been economic growth of about 4.8% in Malta in 2021.
 
For complete information about how to set up a foundation in Malta, you can contact our company formation agents in Malta.
 

 

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