Malta Family Investment Companies

A Malta Family Investment Company is a Malta-registered private company used to hold and manage family investment assets, including:

• Listed and unlisted securities
• Real estate (local or foreign)
• Private equity participations
• Intellectual property
• Digital and alternative assets

In most cases, the company is incorporated as a private limited liability company under the Malta Companies Act (Cap. 386), which provides:

• Limited liability protection
• Recognised EU corporate status
• Formal governance structures
• Director-led management

Malta FICs are particularly attractive to families seeking a transparent, EU-compliant structure that remains internationally respected and regulated.

Corporate Taxation

Malta companies are subject to corporate income tax under the Income Tax Act (Cap. 123) at a headline rate of 35%.

However, Malta operates a full imputation system, meaning tax paid at company level is credited in full to shareholders upon distribution of dividends. In certain circumstances, non-resident shareholders may be entitled to a partial tax refund, reducing the effective tax burden, subject to anti-abuse provisions and substance requirements.

This system:

• Avoids economic double taxation
• Supports internationally compliant structuring
• Operates within EU law parameters

Malta has concluded over 70 double taxation treaties and benefits from:

• The EU Parent-Subsidiary Directive
• The Interest and Royalties Directive
• The EU Anti-Tax Avoidance Directive (ATAD)

This enhances Malta’s attractiveness as a holding jurisdiction for cross-border investments.

“Malta’s corporate framework offers international families a regulated EU platform with governance clarity and treaty access – not merely tax efficiency.”
Jean-Philippe Chetcuti, Managing Partner, Chetcuti Cauchi Advocates

A key strength of a Malta FIC lies in share class flexibility.

Under the Malta Companies Act (Cap. 386, Articles 69–75), companies may issue different classes of shares with:

• Distinct voting rights
• Differential dividend entitlements
• Capital participation rights
• Conversion or redemption features

This enables founders to:

• Retain voting control
• Transfer non-voting economic shares
• Allocate dividend streams strategically
• Freeze value at founder level

Such structuring supports succession planning without immediate surrender of control.

Where appropriate, share transfers may be integrated with:

• Cross-border estate planning
• Family office governance policies
• Private foundations or trusts

International families increasingly seek structures that demonstrate:

• Regulatory legitimacy
• Clear management and control
• Operational substance

A Malta FIC offers:

• Board governance under EU corporate standards
• Statutory filing and reporting
• Defined director duties (Companies Act, Art. 136A)
• Transparent beneficial ownership disclosure in line with EU AML directives

For globally mobile families, governance discipline and EU substance have become as important as tax outcomes.

Malta also permits foreign directors and shareholders, provided proper management and control considerations are respected for tax residency purposes.

Malta FIC vs Trust or Foundation

Malta offers alternative private wealth structures, including:

• Malta trusts (Trusts and Trustees Act, Cap. 331)
• Malta private foundations (Second Schedule, Civil Code, Cap. 16)

Key distinctions include:

StructureGovernanceTaxationControlTransparencyFICDirectorsCorporate taxShareholder-drivenCorporate filingsTrustTrusteesTrust taxationTrustee discretionPrivate deedFoundationAdministratorsHybrid regimeCharter-basedRegistered instrument

For entrepreneurial families accustomed to corporate environments, a Malta FIC often provides:

• Familiar governance
• Clear ownership rights
• Easier integration with operating businesses

Hybrid structures are common, where a foundation or trust may hold shares in the FIC.

International Tax Considerations

Because Malta FICs are frequently used by internationally mobile families, careful analysis is required of:

• Shareholder residence and domicile
• Controlled foreign company (CFC) rules in the shareholder’s home jurisdiction
• Source taxation of underlying income
• Permanent establishment exposure
• Anti-hybrid rules under ATAD

Malta’s compliance with OECD BEPS standards ensures that structures must be commercially justifiable and substance-based.

A Malta FIC is not a tax avoidance mechanism – it is a corporate structuring tool requiring integrated advisory oversight.

An international entrepreneur relocating to Malta sought to:

• Consolidate global investment assets
• Establish EU substance
• Introduce adult children into structured wealth governance
• Align with Malta tax residency

A Malta Family Investment Company was incorporated with:

• Founder holding voting shares
• Children issued non-voting growth shares
• Board governance based in Malta
• Treaty access utilised for cross-border dividends

This structure provided:

• EU corporate legitimacy
• Centralised asset management
• Succession visibility
• Compliance-aligned tax planning

Regulatory and Legal Framework

Malta FICs operate within a clear statutory framework:

• Companies Act (Cap. 386) – corporate governance
• Income Tax Act (Cap. 123) – corporate taxation
• Duty on Documents and Transfers Act (Cap. 364) – share transfer considerations
• Prevention of Money Laundering Act (Cap. 373) – compliance obligations

All companies must:

• Maintain statutory registers
• File annual returns
• Prepare audited financial statements (subject to exemptions)

Malta’s regulatory infrastructure supports international recognition and EU compliance.

Our Private Client, Corporate and International Tax teams advise international families on structuring Malta Family Investment Companies aligned with cross-border compliance and long-term succession objectives.

We coordinate:

• Corporate incorporation and governance design
• Share class structuring and Articles drafting
• International tax modelling
• Interaction with Malta residence or relocation strategies
• Integration with trusts, foundations and family offices

Our Malta-based team works closely with international advisors to ensure the structure remains robust across jurisdictions.

[question]What is a Malta Family Investment Company?[/question]
[answer]A Malta Family Investment Company is a Malta-registered private limited company used to hold and manage family investments within an EU-regulated corporate framework.[/answer]

[question]Why choose Malta for a Family Investment Company?[/question]
[answer]Malta offers EU membership, an extensive double tax treaty network, a full imputation tax system, and flexible corporate law that supports international wealth structuring.[/answer]

[question]Can non-residents own a Malta FIC?[/question]
[answer]Yes. Malta permits foreign shareholders and directors, subject to compliance, tax residency, and management and control considerations.[/answer]

[question]Is a Malta FIC suitable for international families?[/question]
[answer]Yes, provided cross-border tax, CFC rules and treaty implications are analysed. Malta FICs are often used by internationally mobile families seeking EU substance.[/answer]

[question]How does a Malta FIC support succession planning?[/question]
[answer]Different share classes allow founders to retain control while transferring economic rights to the next generation in a structured and governed manner.[/answer]