Professional Investor Funds In Malta

Introduction

Ever since joining the European Union in 2005 Malta has attracted an ever-increasing interest in its Financial Services and is steadily becoming an alternative European fund domicile of choice.

There are a number of clear advantages that Malta offers as a jurisdiction in which to set up a fund. The main reason is the tax treatment of funds in Malta:

• A fund which owns 15% or more of its portfolio invested in assets outside of Malta is exempt from any income or capital gains tax;
• Capital gains realized by investors in the fund who are non-residents of Malta are not subject to any tax whatsoever in Malta;
• Management and performance fees charged by service companies can end up being taxed at the rate of 5% if the country of origin has a double taxation agreement with Malta.