Malta: A home for family offices

Authors: Kurt Hyzler & Nicky Azzopardi

Malta’s robust legal framework, strategic location, and innovative practices have allowed it to gain a foothold in the international financial sector and fund industry.

The MFSA has identified Single-Family Offices (SFOs) as a growth opportunity for Malta’s financial services sector and has streamlined its regulatory framework to facilitate the establishment of SFOs in Malta and their management of notified professional investor funds (NPIFs).

As dedicated structures focusing on wealth preservation, growth, and intergenerational transfer for high-net-worth families, SFOs provide a comprehensive range of services, including investment management and estate planning, offering a tailored and efficient approach to wealth management.

Depending on the specific structures used, some aspects of SFOs may require MFSA licensing or notification. However, by virtue of the amendments to the applicable regulations, SFO managers established in Malta would be able to act as fund managers for NPIFs without the need to obtain an investment services license.

Family Office Vehicles

In order to be able to act as managers for an NPIF without the requirement to obtain an investment services license, the NPIF would be required to be a family office vehicle.

A “family office vehicle” is defined as an investment undertaking which is only available to a group of family members, irrespective of the type of legal structure that may be put in place by them to invest in such an undertaking, and insofar as the sole ultimate beneficiaries of such structures are family members, where the existence of the group predates the establishment of the undertaking. No solicitation of investment from third parties is permissible in family office vehicles.

NPIFs

The regulatory adjustments made by the MFSA reduce administrative burdens and costs for SFOs, enabling them to utilise the NPIF structures more efficiently for managing family wealth. NPIFs by design are streamlined fund structures intended to expedite the time-to-market for fund promoters. These provide fund promoters with an efficient and cost-effective alternative to fully licensed funds—a key function that should be of great appeal to SFOs.

Unlike traditional investment funds that require full regulatory approval, a NPIF follows a notification process rather than an authorisation process, allowing them to be included in the MFSA’s list of NPIFs within ten (10) working days from the submission of a complete notification request to the MFSA. Further information about NPIFs may be found here.

Malta: A Jurisdiction for SFOs

Beyond the tailor-made solution outlined above, Malta’s known domicile benefits could make it a jurisdiction of choice for Family Offices.

Indeed, Malta’s geographical location, EU membership, taxation legislation, and its wide array of expertise in the fund industry make it a convenient base for various investment structures.

As a member of the European Union, Malta provides investment structures with seamless access to the European market—including the enhanced legislative protection that comes with EU membership.

Furthermore, Malta offers an attractive tax regime for SFOs, NPIFs, and other financial vehicles. When structured correctly, taxation can be highly optimised, benefiting from Malta’s extensive network of double taxation treaties. These tax incentives make Malta a compelling choice for high-net-worth families looking to preserve and grow their wealth efficiently.

In comparison to other EU financial centres such as Luxembourg or Dublin, Malta also provides cost-efficient setup and operational expenses for SFOs. Legal, accounting, and compliance services remain competitively priced, ensuring high-net-worth families receive premium service without excessive costs.

Lastly, Malta has a well-established ecosystem of professionals, including fund administrators, legal advisors, accountants, and auditors with significant expertise in structuring and managing SFOs.