ARTICLE · 05 NOVEMBER 2024

Maltese Foundations: What Are Their Advantages And Distinct Characteristics?

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In 2007, Malta enacted specific legislation regarding foundations. Subsequent legislation was introduced, regulating the taxation of foundations, and this further enhances Malta as a jurisdiction for international private asset planning.

MaltaTax

Jonathan Vassallo

Background

In 2007, Malta enacted specific legislation regarding foundations. Subsequent legislation was introduced, regulating the taxation of foundations, and this further enhances Malta as a jurisdiction for international private asset planning.

Foundations have been described as the civil law alternative to trusts.

There are three types of foundations in Malta:

Private foundations are established for the benefit of a beneficiary or group of beneficiaries.
Charitable foundations are public benefit foundations exclusively promoting a social or public purpose on a non-profit making basis.
Purpose foundations are established for a purpose, without beneficiaries and generally have a philanthropic objective, although they can be established with a private purpose.

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