WHY MALTA

An ideal jurisdiction for the fund industry

Malta has become a popular fund jurisdiction, providing investors with the assurance of operating in a stable, flourishing economy supported by a long-established reputation.

WHY MALTA

Malta as a Financial Centre

Jurisdiction benefits

Malta permits investors to function with confidence and assurance in a resilient and thriving economy, offering:

A cost-competitive hub when compared to other jurisdictions

Easy access to the European investments market

A solid and thorough regulatory framework

A favourable fiscal regime with a range of business models

Advantageous tax regime

For the shareholders of the investment company, who are not resident in Malta, no tax is imposed on:

Schemes with over 85% of their assets outside Malta

The Net Asset Value of the scheme

Dividends paid to non-Maltese residents

Capital gains on the sale of units by non-Maltese residents

Economic stability

Recent economic success and stability have established Malta as the commercial hub of the Mediterranean, thriving in these sectors:

Financial and Corporate

Fintech

Tourism

Education

ICT

Marine and others

Investing in a safe place

Malta remains a safe and credible country for funds, particularly due to its strengthened regulatory framework.

The Malta Financial Services Authority (MFSA) has implemented reforms focused on transparency, compliance, and anti-money laundering protocols. Enhanced scrutiny and collaboration with international regulatory bodies have strengthened Malta's commitment to financial integrity, aligning with EU standards.

This robust regulatory approach has increased confidence in Malta as a financial hub, making it a reliable and secure choice for fund managers and investors seeking both stability and access to the European market.

COLLECTIVE INVESTMENT SCHEMES

Diverse Fund Structure

Retail

Undertaking for the Collective Investment in Transferable Securities (UCITS)

This collective investment initiative, commonly referred to as an investment fund, allocates resources to various securities, including equities, fixed-income instruments, short-term treasury securities, and cash equivalents.

The fund's units must be repurchasable or redeemable at the request of holders, directly from the fund's assets, excluding closed-ended schemes.

It should be set up as a mutual fund or similar arrangement, handled by a management company, investment company, limited partnership with variable share capital, or unit trust.

The units must be marketed to the public within the BOV Community and free from restrictions in the trust deed or the articles of the investment company.

Non-retail

Professional Investor Fund (PIF)

These investment vehicles are regulated in Malta and designed for professional and qualified investors, operating under a more lenient regulatory framework. They do not have EU or EEA passporting rights but remain regulated within the EU and support various investment strategies across all asset classes.

This typology provides a more relaxed regulatory regime and more flexibility than UCITS, AIFs, and other typologies.

The minimum investment threshold for PIFs is EUR 100,000 or equivalent in any other currency.

PIFs are tailored to appeal to high net worth individuals, featuring minimal regulation and oversight.

PIFs are not bound by any requirements for risk spreading, or diversification, and do not face restrictions on borrowing or leverage.

PIFs can be managed independently without the necessity of engaging a third-party fund manager.

Notified Professional Investor Fund (NPIF)

NPIFs facilitate faster fund launches while maintaining regulatory supervision, with their governing body ensuring compliance with the act, regulations, and other legal requirements.

NPIFs only require a notification requirement from the Regulator, the MFSA in this case (instead of full licensing) and has limited ongoing supervision.

The time to market is only of 10 working days from a duly submitted application.

NPIFs offer relatively lower setup and ongoing compliance costs.

NPIFs can be managed by EU de minimis AIFMs, third-country AIFMs or self-managed.

Qualifying investors can invest a minimum of EUR 100,000 or its currency equivalent in the NPIF.

NPIFs can attract capital throughout the EU.

Alternative Investment Fund (AIF)

These specialised investment schemes are set up under the Investment Services Act. They attract capital from multiple investors and support sectors like private equity, real estate, and venture capital while ensuring a regulated network.

Alternative Investment Funds (AIFs) are collective investment schemes governed by the Investment Services Act, 1994, following the transposition of the AIFMD into Maltese law in July 2013.

The Alternative Investment Fund Managers Directive (AIFMD) aims to ensure strong investor protection by establishing a uniform framework for managing and marketing non-UCITS funds.

Capital is raised from multiple investors to align with a specific investment strategy, covering hedge funds, private equity, real estate, venture capital, and similar funds under the AIFMD framework.

Notified Alternative Investment Fund (NAIF)

NAIFs are investment funds that operate under a more simplified framework. MFSA performs due diligence and ongoing monitoring but does not directly license NAIFs. These funds follow a notification process, allowing more flexibility.

The AIFM is responsible for due diligence and ongoing monitoring. However, the MFSA does not license the Investment Fund.

The NAIF is subject to a notification process.

Both open-ended and closed-ended NAIFs are allowed.

The time to market is only of 10 working days from a duly submitted application.

MALTA’S FUND INDUSTRY

Setting up a fund

1

Initiation

We help you select the most suitable fund structure.

2

Preparation

One of the leading law firms on the island is engaged to help prepare the necessary documentation.

3

Incorporation

We assist you with the incorporation of the investment company.

4

Identification

All the service providers of the investment company are identified.

5

Submission

We file the application documents with the Regulator on your behalf.

6

Licensing

We manage all aspects of the process until the licensing is obtained.

Get to know us

Discover the benefits of working with us.

Learn more

MALTA

Talk to us today!

Contact us to get to know more about our services and how we can tailor them to your needs.

Please complete the form and a member of our team will be in touch with you shortly.

Retail

Undertaking for the Collective Investment in Transferable Securities (UCITS)

The fund's units must be repurchasable or redeemable at the request of holders, directly from the fund's assets, excluding closed-ended schemes.

It should be set up as a mutual fund or similar arrangement, handled by a management company, investment company, limited partnership with variable share capital, or unit trust.

The units must be marketed to the public within the BOV Community and free from restrictions in the trust deed or the articles of the investment company.

Non-retail

Professional Investor Fund (PIF)

This typology provides a more relaxed regulatory regime and more flexibility than UCITS, AIFs, and other typologies.

The minimum investment threshold for PIFs is EUR 100,000 or equivalent in any other currency.

PIFs are tailored to appeal to high net worth individuals, featuring minimal regulation and oversight.

PIFs are not bound by any requirements for risk spreading, or diversification, and do not face restrictions on borrowing or leverage.

PIFs can be managed independently without the necessity of engaging a third-party fund manager.

Notified Professional Investor Fund (NPIF)

NPIFs facilitate faster fund launches while maintaining regulatory supervision, with their governing body ensuring compliance with the act, regulations, and other legal requirements.

NPIFs only require a notification requirement from the Regulator, the MFSA in this case (instead of full licensing) and has limited ongoing supervision.

The time to market is only of 10 working days from a duly submitted application.

NPIFs offer relatively lower setup and ongoing compliance costs.

NPIFs can be managed by EU de minimis AIFMs, third-country AIFMs or self-managed.

Qualifying investors can invest a minimum of EUR 100,000 or its currency equivalent in the NPIF.

NPIFs can attract capital throughout the EU.

Alternative Investment Fund (AIF)

Alternative Investment Funds (AIFs) are collective investment schemes governed by the Investment Services Act, 1994, following the transposition of the AIFMD into Maltese law in July 2013.

The Alternative Investment Fund Managers Directive (AIFMD) aims to ensure strong investor protection by establishing a uniform framework for managing and marketing non-UCITS funds.

Notified Alternative Investment Fund (NAIF)

The AIFM is responsible for due diligence and ongoing monitoring. However, the MFSA does not license the Investment Fund.

The NAIF is subject to a notification process.

Both open-ended and closed-ended NAIFs are allowed.

The time to market is only of 10 working days from a duly submitted application.

An ideal jurisdiction for the fund industry

Malta as a Financial Centre

Jurisdiction benefits

Malta permits investors to function with confidence and assurance in a resilient and thriving economy, offering:

Advantageous tax regime

For the shareholders of the investment company, who are not resident in Malta, no tax is imposed on:

Economic stability

Recent economic success and stability have established Malta as the commercial hub of the Mediterranean, thriving in these sectors:

Investing in a safe place

Diverse Fund Structure

Retail

Undertaking for the Collective Investment in Transferable Securities (UCITS)

Non-retail

Professional Investor Fund (PIF)

Notified Professional Investor Fund (NPIF)

Alternative Investment Fund (AIF)

Notified Alternative Investment Fund (NAIF)

Setting up a fund

1

Initiation

2

Preparation

3

Incorporation

4

Identification

5

Submission

6

Licensing

Get to know us

Discover the benefits of working with us.

Related Links

Malta Financial Services Authority (MFSA)

Malta Asset Service Association (MASA)

FinanceMalta

Talk to us today!

Contact us to get to know more about our services and how we can tailor them to your needs.Please complete the form and a member of our team will be in touch with you shortly.

+356 2122 7148

Malta as a Financial Centre

Jurisdiction benefits

Malta permits investors to function with confidence and assurance in a resilient and thriving economy, offering:

Advantageous tax regime

For the shareholders of the investment company, who are not resident in Malta, no tax is imposed on:

Economic stability

Recent economic success and stability have established Malta as the commercial hub of the Mediterranean, thriving in these sectors:

Diverse Fund Structure

Retail

Undertaking for the Collective Investment in Transferable Securities (UCITS)

Non-retail

Professional Investor Fund (PIF)

Notified Professional Investor Fund (NPIF)

Alternative Investment Fund (AIF)

Notified Alternative Investment Fund (NAIF)

Setting up a fund

1

Initiation

2

Preparation

3

Incorporation

4

Identification

5

Submission

6

Licensing

Get to know us

Discover the benefits of working with us.

Related Links

Malta Financial Services Authority (MFSA)

Malta Asset Service Association (MASA)

FinanceMalta

+356 2122 7148

Contact us to get to know more about our services and how we can tailor them to your needs.

Please complete the form and a member of our team will be in touch with you shortly.