While the redomiciliation of foreign companies into and
continuation in Malta was already covered in existing regulations,
for foundations the longingly awaited amendment of the Second
Schedule of the Civil Code has finally been enacted. On the 6th of
November 2018, the Voluntary Organisations Act has been amended by
Act No. XXXVI of 2018, allowing foreign organisations, which
includes foundations, to redomicile into Malta through the new
Article 22A.
The redomiciliation of a foundation does usually not constitute
a deemed liquidation when emigrating. Until now the only solution
to reorganise a foundation from a foreign country into a Maltese
Foundation was to have the foreign foundation to set up and Maltese
foundation, appoint its assets to it and thereafter unwind. The
redomiciliation rules now allow for an existing foundation to
continue under the Maltese laws. This may avoid adverse tax
consequences, i.e. the deemed liquidation of the foreign foundation
with
