Malta Private Trust Company

Malta is a jurisdiction of choice for estate planning. Over the last decade, the country has attracted both individuals as well as families wishing to structure their wealth in a safe, secure and reputable jurisdiction. Being a full European Union Member State, Malta offers a regulated environment with flexible legislation and reliable service providers.

A Malta Private Trust Company (PTC) is a privately owned corporate trustee acting as the trustee of trusts holding the assets of a wealthy family.  The board of directors is often constituted by the same family members and their trusted advisors. Therefore, the PTC caters for the family's continued involvement in the administration of the assets in a different capacity.

Malta PTCs are considered to be an attractive option to incorporate within a family estate plan to provide for the administration of Malta family trusts, due to the simplicity of the process of registration through a recognition as well as, the certainty of the process with rules published by the Malta Financial Services Authority (MFSA).

• Applicable Law: Trusts & Trustees Act
• Official Languages: Maltese, English
• Regulator: Malta Financial Services Authority (MFSA), sole regulator of Maltese Private Trust Companies
• European Union: Full Member of the EU & Eurozone
• Legal Framework: Dynamic & Detailed
• Currency: Euro (€)
• Regulatory Environment: Sound, compliant with international standards

Benefits of a Malta Private Trust Company

The process is simpler than the setting up of a professional trustee entity and offers effective family control over both the Private Trust Company (PTC) and the family trusts under its administration. The structure also helps reduce annual administrative costs and involves a straightforward registration process. Additionally, it provides a simple and efficient mechanism for changing trustees when needed.

Legal Basis

In Malta, a Private Trust Company (PTC) is established as a limited liability company and is used solely to act as trustee for one or more family trusts. This structure offers families a flexible, private, and cost-effective solution for managing their wealth.

The creation of PTCs in Malta was made possible through:

• Article 43B of the Trusts and Trustees Act, which introduced the legal basis for PTCs.
• The Malta Financial Services Authority (MFSA) Rules on Trustees of Family Trusts, which provide clear guidance on the formation, governance, and operation of PTCs.

A Malta PTC is typically set up by or on behalf of a family to manage trusts created for the benefit of current and future family members and dependants.

Malta Private Trust Company Requirements

To set up a Private Trust Company (PTC) in Malta, certain legal and regulatory requirements must be met under Maltese law and MFSA (Malta Financial Services Authority) guidelines.

• The PTC must be a Malta-based limited liability company.
• It must have at least three directors, who:
  • Are individuals of good reputation
  • At least one director must have experience in trusts, finance, or corporate governance.
• The PTC must have appropriate insurance cover to match the nature and scale of its activities.
• It must only act as trustee for family trusts (not for the public or unrelated third parties).