Understanding Property Holding Companies in Malta
A property holding company is a Maltese-registered company established primarily to own immovable property, rather than to trade or develop property as a commercial activity. The company may hold a single property or multiple properties, whether residential or investment-oriented.
Holding property through a company differs fundamentally from personal ownership. Where property is held personally, it forms part of the individual’s personal asset base. Where property is held through an entity, ownership rests with the company, while the individual or family holds shares or interests in that company. This distinction is central to many structuring decisions involving holding property through a company in Malta, typically by means of a Malta holding company.
Property holding companies in Malta are used both at the acquisition stage and as part of post-acquisition restructuring, depending on a client’s objectives and circumstances.
Why Hold Property in Malta Through a Company
For HNWIs and internationally mobile families, the decision to hold property through an entity is rarely driven by a single factor. Instead, it reflects a combination of structural, protective, and planning considerations.
Holding property through a Malta real estate holding structure, commonly implemented via a Malta holding company, may allow individuals to:
- Separate personal ownership from property-related exposure
- Centralise ownership of multiple properties
- Align property ownership with wider wealth or family structures
- Plan ownership continuity beyond the current generation
For some, the appeal lies in simplicity of succession. For others, it lies in risk management or long-term structuring. Importantly, corporate ownership is not inherently “better” than personal ownership; it is simply different, and suitability depends on context.
Property Holding Companies in Malta and Asset Protection
One of the recurring reasons for considering property holding companies in Malta for asset protection is the legal separation between the individual and the property itself.
Where property is held personally, it is exposed to risks arising at the personal level. Where property is held through a company — typically a Malta holding company — the property belongs to the entity, not to the individual shareholder. This distinction can be relevant for individuals with professional exposure, business interests, or complex personal circumstances.
In more sophisticated structures, property holding companies may be used alongside other entities to ring-fence assets, particularly where families hold multiple properties or a mix of operating and non-operating assets. For this reason, holding Maltese property through a corporate structure is often explored as part of wider asset protection discussions rather than as a standalone decision.
Property Holding Companies and Estate Planning
Estate and succession planning is another area where Malta property ownership structuring becomes particularly relevant for HNWIs and families.
Holding property personally often results in succession issues being addressed at the level of the immovable property itself. By contrast, where property is held through a company — frequently a Malta holding company — succession planning may focus on the shares or interests in that company. This can offer greater flexibility in managing control, benefit, and transfer across generations. Malta trusts may be considered to as part of a wider estate plan.
For families with international members or heirs, property holding company Malta estate planning structures may help avoid fragmentation of ownership and support continuity. Such structures are commonly used alongside wills, trusts, or family governance arrangements, depending on the family’s objectives.
Tax and Cost Considerations
While tax and cost considerations are always relevant, they are highly fact-specific and depend on multiple variables, including:
- Whether the property is residential or investment-oriented
- Whether it is used personally, rented, or mixed-use
- Whether the company is acquiring property or receiving it by transfer
Example: Holding a Malta Residential Property Through a Company
Consider an internationally mobile family acquiring an apartment in Malta for personal and family use. Rather than purchasing the property personally, the family establishes a Maltese company — structured as a Malta holding company — to acquire and hold the apartment.
The company owns the property, while family members hold shares in the company. The property is used as a private residence when the family is in Malta. Over time, the structure allows the family to:
- Maintain continuity of ownership
- Plan succession through the transfer of shares
- Integrate the property into wider family wealth structures
This example illustrates how structuring personal-use property in Malta through a company is often driven by planning considerations rather than immediate transactional advantages. The suitability of such a structure would depend on the family’s wider circumstances and objectives.
Property Holding Companies for Existing Property Owners
Not all structuring decisions are made at acquisition stage. Individuals who already own property in Malta may later consider transferring property to a holding company as part of a broader restructuring exercise, often involving a Malta holding company.
Such decisions require careful legal and tax implications analysis, as the effects of transferring property to an entity can differ significantly from acquiring property through a company at the outset. This reinforces the importance of obtaining advice tailored to the specific property, ownership history, and future plans.
In practice, property holding companies in Malta are most commonly considered by:
- HNWIs acquiring residential or investment property
- Families holding multiple Maltese properties
- International families with succession planning needs
- Family offices structuring European real estate exposure
The common thread is not property type, but long-term planning and structuring intent, often implemented through a Malta holding company.
What This Means for You & How Our Property and Private Client Lawyers Can Help You
Deciding whether to hold property personally or through a company in Malta is a strategic decision, not a purely transactional one. The right approach depends on the type of property, intended use, family circumstances, and long-term objectives.
This publication provides an overview of how property holding companies in Malta are used in practice, but it cannot replace bespoke legal advice. For many clients, the most valuable step is exploring options before acquiring or restructuring property, rather than after.
Our lawyers advise individuals, families, and family offices on the acquisition, structuring and restructuring of property ownership in Malta, including the use of property holding companies and Malta holding companies. We work closely with tax advisors, estate planners, and foreign counsel to ensure that ownership structures are aligned with each client’s broader legal and personal objectives.
