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trusts & foundations Certainty and security c ntents Malta, a civil law country within the European Union, has created a unique ‘best of both’ vehicle to be able to offer the same benefits of the Anglo-Saxon trust in the context of a more familiar legal terrain for people from other civil law countries. Finance Institutions & Associations...... 4 Trust & Foundation Domicile at a Glance ...... 6 The Maltese Trust and Trustees Act of 2005 brought this streamlined and simplified trust regime into force and the International Finance Centre ...... 8 Malta Trust now offers greater flexibility, high standards of certainty and a closely regulated environment for the set-up Trusts & Foundations in Malta ...... 14 of the trust. A key feature of the Malta trust is the option to choose to be governed by the laws or be adjudged by the judiciary of another jurisdiction. A Leading Domicile for Asset Protection: Key Reasons for Malta’s Success ...... 16 Malta’s competitive set-up and management costs are proving attractive to both corporate entities and high net worth Regulation & Oversight ...... 20 individuals. The sector is served by over 100 companies now licensed to offer trust and trustee services in Malta, and the island has a strong contingent of multilingual, skilled professionals who are available to provide comprehensive Trusts in Malta...... 22 administration and back office services, as well as a STEP branch that was formed in 2006. Trust Forms ...... 24 Foundations in Malta ...... 26 Flexible, effective and familiar...a Malta trust offers both certainty and security. Setting up a Trustee Business in Malta ...... 28 Professional Services ...... 31 Banking & Financial Services...... 32 Real Estate ...... 33 more information on: Communications ...... 34 www.financemalta.org Human Capital...... 35 Taxation ...... 36 Travel & Living...... 39 Company Profiles: Who’s Who ...... 43

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in association with in association with International strongly recommends that the reader seeks the advice of an appropriately Regional Directors Financial Centre Built on Stability, Managed Effectively MALTA MALTA ASSOCIATION ASSOCIATION FOR RETIREMENT FOR RETIREMENT SCHEME SCHEME www.financemalta.org licensed professional. The Guide is meant as general information and should Kristina Ernst / CountryProfiler - [email protected] A CountryProfiler Publication PRACTITIONERS A CountryProfiler Publication PRACTITIONERS not be interpreted as legal advice or as a technical guide in substitution Garvan Keating / CountryProfiler - [email protected] of the relevant legislation. Additional requirements may also apply. Administrative Director All rights reserved. Reproduction in whole or part is strictly prohibited Rick Martin / CountryProfiler - [email protected] without the written permission of the publisher. Opinions expressed Promoting and Fostering Malta’s in this publication are not necessarily those of the editor or publisher. Administration All reasonable care is taken to ensure truth and accuracy, but the Melissa Puglisevich / CountryProfiler - editor and publishers cannot be held responsible for errors or [email protected] International Finance Centre omissions in articles, advertising, photographs, or illustrations. Art Director CountryProfiler would like to thank the Office of the Prime Minister, Ramon Micallef / Box Design - [email protected] Ministry of Finance, the Economy and Investment, FinanceMalta, Malta Financial Services Authority, the Association of Insurance Brokers, the Advertising Sales Malta Bankers’ Association, the Malta Funds Industry Association, the Malta [email protected] Insurance Association, the Malta Insurance Management Association, the Institute of Financial Services Practitioners, the Society of Trust and Estate Photography Practitioners, the Malta Association for Retirement Scheme Practitioners Alan Carville / Malta Tourism Authority / and in particular Mr James Bonello, Mr Kenneth Farrugia, Dr Marina Grech, Chris Sant Fournier / Michael Jurick Dr Priscilla Mifsud Parker, Mr Malcolm Becker, Dr Rosanne Bonnici, Dr Matthew Brincat and Dr Chris Cachia for their support and assistance. 4 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 5

Finance Industry Representative Finance Industry Regulator

FinanceMalta Chairman: Kenneth Farrugia Malta Financial Services Authority (MFSA) Chairman: Joseph Bannister

FinanceMalta, a non-profit public private initiative, was formally set up on the 21st May 2007 with the The Malta Financial Services Authority (MFSA) is the single licensing and supervisory authority for scope of promoting Malta’s international financial centre, both within, as well as outside, its shores. all financial services activity. The Authority is an autonomous public institution set up by law. The It brings together, and harnesses, the resources of the industry and government, to ensure that Malta sector overseen by the MFSA includes banks, investment firms, insurance companies and financial maintains a modern and effective legal, regulatory and fiscal framework in which the financial intermediaries who provide a wide range of products and services on the domestic and international services sector can continue to grow and prosper. The founding associations are: the Malta Funds markets. The regulation of the Malta Stock Exchange also falls under the responsibility of the MFSA. Industry Association, the College of Stockbrokers, the Malta Bankers’ Association, the Malta Insurance The MFSA is further responsible for consumer education and consumer protection in the financial Association, the Association of Insurance Brokers, and the Institute of Financial Services Practitioners. services sector. It also manages Malta’s Registry of Companies. These associations, together with the Malta Insurance Management Association which is also affiliated with FinanceMalta, represent the financial services industry in Malta.

VLT1063 FinanceMalta, Garrison Chapel, Castille Place, Valletta - Malta • Tel: +356 2122 4525 Notabile Road, Attard BKR 3000 - Malta Fax: +356 2144 9212 • General Mail: [email protected] • Website: www.financemalta.org Effective I Secure I Skilled Tel: (+356) 2144 1155 • Fax: (+356) 2144 1188 Find us on: Email: [email protected] • Website: www.mfsa.com.mt

FinanceMalta @FinanceMalta FinanceMalta FinanceMaltaYT

Finance Industry Associations

Malta Association for Malta Bankers’ Malta Funds Industry Malta Insurance Malta Insurance The Institute of Association of Insurance Society of Trust and Estate Retirement Scheme Association (MBA) Association (MFIA) Association (MIA) Management Financial Services Brokers (AIB) Practitioners (STEP) Malta Practitioners (MARSP) Association (MIMA) Practitioners (IFSP) Chairman: Mark Watkinson Chairman: Kenneth Farrugia President: Matthew von Brockdorff Chairman: Sean Agius Branch Chairman: Malcolm Becker Secretary General: Chairman: John Tortell President: Andrew Manduca Dr Matthew Brincat 48/2 Birkirkara Road, 116 Archbishop Street, 43A/2 St. Paul’s Buildings, c/o 171/176 Old Bakery STEP (Malta) P.O. Box 413, Attard ATD 1210 Valletta VLT 1444 West Street, Valletta VLT 1532 c/o 171, Old Bakery P.O Box 37, Valletta VLT 1000 Street, Valletta VLT 1455 Old Bakery Street, Valletta c/o 171 Old Bakery Tel: (356) 2141 2210 / 2141 0572 Tel: (356) 2597 5100 Tel: (356) 2123 2640 Street, Valletta VLT 1455 Tel: (356) 2569 6352 E: [email protected] Tel: (356) 21 378 828 Street Valletta VLT 1455 Fax: (356) 2142 4580 Fax: (356) 2597 5190 Fax: (356) 2124 8388 Tel: (356) 2123 5406 Fax: (356) 2144 9212 www.aibmalta.com Fax: (356) 21 378 383 Tel: +356 21 247902 E: [email protected] E: [email protected] E: [email protected] Fax: (356) 2123 5407 E: [email protected] E: malcolm.becker@ E: [email protected] www.maltabankers.org www.mfia.org.mt www.maltainsurance.org E: [email protected] www.ifsp.org.mt bentleyreid.com.mt www.mima-malta.com www.step.org/branches/ europe/malta.aspx

Additional Resources

Malta Institute Malta Institute of Malta Institute of College of Stockbroking The Malta Chamber of Institute of Directors Malta Enterprise Malta Chamber of Taxation Accountants (MIA) Management (MIM) Firms Commerce, Enterprise (IoD) Malta Corporation of Advocates and Industry 66, Mosta Road Level 1, Tower Business Centre Block B, Orange Grove c/o Rizzo, Farrugia & Co. 55, St Anthony Street Gwardamangia Hill Superior Courts, The Law Attard ATD1430 Tower Street, Swatar BKR 4013 Birbal Street, Balzan BZN9013 (Stockbrokers) Ltd, Airways House, The Exchange Buildings Attard ATD 1283 Pietà MEC 0001 Courts, Republic Street Tel: (+356) 21314653 Tel: +356 2258 1900 Tel: (356) 21453097 3rd Floor, High Street, Sliema SLM1549 Republic Street, Valletta VLT 1117 Tel: (356) 21 247 400 Ext 1 Tel: (356) 2542 0000 Valletta VLT2000 E: [email protected] Fax: +356 2132 3906 Fax: (356) 21451167 Tel: (356) 2258 3000 Tel: (356) 2123 3873 E: jamesarrigo@ E: [email protected] Tel: (356) 21248601 www.maintax.org E:[email protected] E:[email protected] Fax: (356) 2132 4546 Fax: (356) 2124 5223 marinamilling.com www.maltaenterprise.com Fax: (356) 21223904 www.miamalta.org www.maltamanagement.com E: [email protected] E: [email protected] www.iod.com/malta E: [email protected] www.stockbrokersmalta.com www.maltachamber.org.mt www.avukati.org 6 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 7 Trust & Foundation Domicile at a Glance 2.8% 6.9% €6.5bn Finance Centre Inflation rate Unemployment Total GDP (2011) All figures are quoted as at December 2012 unless otherwise indicated. in Malta rate in Malta €15,670 Malta’s EU 27: 2.3% EU 27: 10.7% GDP per capita (December 2012) (November 2012)

Located in the centre of the 27 credit 59 Insurance 126 Trust and institutions Companies Fiduciary Companies Mediterranean, two to three 62 Double Taxation Treaties hours flight time from most European centres, the Maltese 10,000 12% 58,000 Employees Contribution to GDP Companies government and the industry Sovereign Rating are committed to putting Malta GOZO Regulator: Malta Financial Services on the map as the foremost Authority (MFSA), www.mfsa.com.mt centre for international financial A+ BBB+/A-2 A3 COMINO services in the Euro-Med region. Fitch Standard & Moody’s 7 days IFRS 2011 Poor’s 2013 2012 Time to start a business Accounting Standards

Real GDP Growth Rate Trust Sector 2007 2008 2009 2010 2011 2012* 5 • St. Julians 4 Sliema • Trusts and Trustees Act • Valletta 3 Trust Legislation: 2 +1.2% 316 MALTA 1 Foundation Legislation: Second Schedule to the 0 Maltese Civil Code (Chapter 16 of the Laws of Malta) Total amount of The total area in -1 -0.3% -2 Trust and Fiduciary square kilometres Malta -3 Companies in Malta of the Maltese EU 27 average -4 Islands Malta International Airport • -5 126 * forecast - Source: Eurostat, December 2012

Out of which 27 are Foundation Administrators

Sunshine: Temperature: Rain: Population: Currency: Time: 300 days of Winter 12ºC Annual rainfall 417,617 (2012) Euro 1 hour ahead sunshine a year Summer 31ºC 600mm of GMT 8 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 9 International Finance Centre

Malta, a small island state at the heart of the Mediterranean, has quietly emerged as one of Europe’s most International Pensions Capital stable and innovative finance domiciles. Malta’s decisions to join the European Union in 2004 and the Markets eurozone in 2008 have proved pivotal to its development as a major finance and business centre. Today Malta has strong banking, insurance, fund and wealth management sectors that have attracted investment from the world’s leading financial institutions, blue-chip multinationals and high-net-worth individuals. Insurance

Country Knowledge Economy

An English-speaking nation One of Europe’s top performers Wealth Management With a history stretching back thousands of years, In recent years, Malta has been ranked among the strongest EU Islamic Malta is the European Union’s smallest member state. economies in terms of GDP growth. Services underpin the Maltese Finance Investment However, the country’s size is no barrier and Malta has economy, accounting for 75 per cent of GDP, while industry Funds positioned itself as a hub for international business. accounts for 23 per cent and agriculture for just 2 per cent.

Depth and breadth. As a small nation, flexibility, A holistic vision. Malta is establishing itself as the number innovation, competitiveness and adaptability have been one knowledge-based economy in the Mediterranean region. ICT, elements of Malta’s development since the country began life sciences, education and financial services are only some of to fend for itself after independence from Britain in 1964. the areas the country is targeting and which have successfully Trusts Diversified In the past few years, Malta has attracted record volumes reshaped Malta’s economic landscape in recent years. of new business to its shores. Financial services have been International identified as a key priority area for economic growth. Last in, first out.The country’s economy was one of the Finance least affected by the recent financial crisis and experienced Easy communication. Inherited from the British, one of the shortest recession periods in the EU. Centre English is to this day the joint official language with Banking Maltese, and is universally spoken and written. It is the Recording growth. Unlike many other European countries, language of legislation, education and business. Malta has been recording economic growth in the past years. After the economy contracted in 2009, Malta was able to post Central base. Malta’s capital city, Valletta, built by the GDP growth of 3.7 per cent in 2010 and of 2.1 per cent in 2011. Knights of St John in the 1500’s, is the main business The country is expected to end 2012 with a GDP growth of 1.2 per centre and the administrative heart of the country. cent which is predicted to rise to 1.6 per cent in 2013. At 6.9 per Asset cent, Malta has one of the lowest unemployment rates in Europe. Management Family Full parliamentary support. Malta’s political leaders Unemployment in the EU stood at 10.7 per cent in November 2012. Holding & Offices have a pro-business attitude and are committed to further assisting the finance sector to grow and encouraging Aiming for more. The development of the finance sector is part Trading foreign investors to establish operations in Malta. of long-term economic plans to increase its contribution to GDP Companies Maritime & from the current 12 per cent to 25 per cent in the coming years. Aviation

Financial Expat Institutions Residency

Foundations 10 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 11

Finance Centre Competitiveness Market Access Infrastructure

A fully-fledged domicile A credible challenger A region of opportunities A platform for business

Malta’s resilience in the face of financial turmoil, economic Malta regularly receives high rankings in benchmarking Situated within two to three hours direct flight time Substantial investments in infrastructure and telecoms networks recession and debt crisis has strengthened its position as reports. In 2011, the European Commission viewed the from Europe’s major cities, EU membership and with it, have created a highly sophisticated business environment. a global financial services centre. Former niche industries competitiveness of Malta’s economy in terms of labour the subsequent introduction of passporting rights, has have become pillars of the country’s economy. productivity as above average in an EU-wide comparison, accelerated growth in all sectors of Malta’s finance centre. Cutting-edge systems. Malta has overcome its while the country has improved its ranking in the Global geographical limitations by building up a state- Prepared for cross-border interaction. The country’s Competitiveness Report 2012-2013 of the World Economic Wide range of market places. Malta offers instant of-the-art telecoms infrastructure. International fund industry is booming as more and more fund managers Forum, climbing from 54th place to 47th (out of 144 countries). access to an internal market of over 500 million connectivity is ensured by two satellite stations and four recognise the island’s potential to serve as a springboard people encompassing the 27 EU economies. submarine fibre-optic links to mainland Europe. into Europe. The Net Asset Value of funds administered Tier 1 reputation. As an EU and eurozone member, Malta in Malta just broke the 10 billion euro mark. offers a regulatory framework that is fully harmonised Good relationships. Malta has excellent relationships Growing industry cluster. Malta’s finance industry is with EU and OECD rules, yet offers a sophisticated and with its neighbouring Mediterranean countries and due to its today made up of about 600 regulated entities, up from 180 Setting an example. The country’s banking system flexible platform for the financial services industry. geographic location, Malta is also an ideal stepping stone to at the end of 2004. In addition, around 11,500 other non- now consists of Maltese and international banks and is the emerging markets of North Africa and the Middle East. regulated entities operate in Malta and service international one of the soundest in the world. Bank of Valletta, the High performance. While global finance centres around the clients, offering legal and other support services. largest financial services provider on the island, passed world struggled, Malta’s finance sector not only withstood the Post-crisis order. In a changing regulatory landscape the 2012 EU stress test with a strong capital buffer. effects of the recent economic and financial downturn but posted with tighter requirements, Malta offers a safe EU location Connected Marketplace. Malta’s excellent air year-on-year growth. Despite the international turmoil, Malta’s with a firm but flexible regulatory framework. and sea infrastructure and long-standing trade links Growing wealth management location. The availability finance sector has expanded between 20 and 30 per cent annually. with major ports in Europe, North Africa and Asia of a wide range of investment vehicles, among them also Follow the sun. Malta lies in a convenient time zone for provide for a network of worldwide connections. trusts and foundations, has made Malta a natural hub for Low risk environment. Malta is a European Union member and has doing business across the world: one hour ahead of GMT, wealth management and family offices in the region. a long-established and strong democratic tradition. Economic policies are meaning office hours coincide with Asia in the morning, Affordable office space. Office space can be liberal and the country is committed to an open business environment. Europe throughout the day and the US in the afternoon. found all over Malta and rents are reasonable. International expansion. From 2004, the insurance sector grew from 8 insurance companies servicing the local market to more Quick start up time. A company can be incorporated in a than 55 insurance companies with business in other countries. couple of days. Malta’s regulator, the MFSA, has set timeframes for the approval of licence applications for financial services such as investment funds or insurance vehicles, with the option of fast-track applications for certain vehicles and service providers. 12 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 13

Regulation & Legislation Lifestyle Costs & Fees Advice & Assistance

Sound regulatory framework and accessible regulator The highest standards of living at the Cost-competitive environment Pool of support heart of the Mediterranean The country’s legislation is in line with EU law and built on Cost is one of the key drivers behind today’s business decisions. Malta’s workforce is multilingual and highly educated. Employment best practices from other finance centres. It caters for the Lying at the centre of the Mediterranean Sea, between When compared to mainland Europe, Malta offers significant cost- in the financial service sector has doubled during the period 2004 regulation of investment funds, banking and insurance business, Europe and North Africa, Malta offers a refreshing change advantages as a finance centre, making it a competitive alternative. to 2012. Some 10,000 people are now employed in the sector. as well as investment service providers and trustees. from other chaotic and high-cost finance centres. Facilitating business. Companies in Malta can benefit from Established service providers. Malta’s professional Efficient regulator. All financial services fall under Sun and sea. As a small Mediterranean island, Malta the country’s extensive network of double taxation treaties as services’ firms have been at the forefront of the finance one regulator, the Malta Financial Services Authority offers unrivalled, easy access to beautiful beaches where well as from a number of business promotional incentives. centre’s growth. At the same time many consultants and (MFSA). Companies benefit from streamlined procedures, the sea and the sun can be enjoyed in equal measure. advisors have also gained experience overseas. reduced bureaucracy and lower regulatory fees. The bottom line. Legal and accounting fees are lower So much more. The island boasts a diverse range of than in most other European jurisdictions, as are other International excellence. Employees and service companies Working in partnership. The regulatory framework shopping, cultural and leisure activities in addition to well- operational costs and salaries which are 20-30 per cent lower are quick, efficient and have developed expertise in niche areas is recognised as serious, while one of Malta’s most equipped public and private hospitals and clinics. Malta’s than those prevailing in the more established centres. such as captive insurance, funds, trusts and wealth management. appreciated advantages is the accessibility of the educational system is excellent, and all personal needs – 60 per cent of Maltese students continue to further education. MFSA, which establishes constructive working from private banking to tax planning – are catered for. relationships with companies investing in Malta. International Rankings Part of global networks. Most of the country’s law firms Relaxed atmosphere. Malta is renowned for its well- are affiliated to international networks and many lawyers Tailored approach. The level of regulation depends balanced work life rhythm. The country’s small size – it have post-graduate degrees in finance. Together with the big in many areas on the experience and knowledge of takes just 45 minutes to cross Malta – reduces commuting four accountancy firms, as well as many other accountancy the market player and the specific set-up. time and increases leisure time. With a very low crime and auditing practices, they service international clients.

rate, the country is also a safe place for families to live. 1st 13th soundest banking The right tools. The possibility of re-domiciling companies into in both Online Multilingual services. Ingrained with a British-influenced system and 15th and out of Malta provides the option of preserving the continuity Exclusive living. The property market features a variety of Sophistication and work ethic, most Maltese speak at least three languages – position in Financial of a company’s legacy, reputation and financial track-record. top-of-the-range homes, including apartments, townhouses Full Online Availibility Maltese, English and Italian. Many also have knowledge Market Development and villas, as well as excellent office space at reasonable rents. (eGovernment Benchmarking of another language, usually French or German. Report, European Commission, (World Economic Forum’s Global December 2010) Competitiveness Report 2012 – 2013, 144 countries reviewed)

1st 3rd in the timely place for overall implementation of EU quality of life and Internal Market rules 1st place for into national law best climate

(Internal Market Scoreboard, (International Living 2011, European Commission, 192 countries reviewed) 2012) 14 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 15 Trusts and Foundations in Malta Who is here already?

Malta has established itself as a reputable trust jurisdiction and the number of Administrators of Private Alliance Trust Company FACT Services Limited Maitland Malta Limited Foundations in terms Limited (formerly F and FBS Trust Limited Mamo and Mercieca Limited authorised trustees is increasing year-by-year. Among the companies offering Why of Article 43(12)b of the A Services Limited) Fenlex Holdings and Mamo, Pace and Associates their services in Malta one finds not only many of the leading firms of the Trusts and Trustees Act Alpha Business Limited Services Ltd. Limited Malta Amicorp Malta Limited FFC Trust Services Limited Manduca Randon and Co. Ltd. sector, but also a large number of smaller firms, local and foreign, that assist Abacus Corporate Antelope Trustees Limited Fides Fiduciary Limited Mdina Trust Services Limited with the establishment and administration of trusts and foundations in Malta. Services Limited Areti Fiduciary Services Ltd Fiducia Trustees Limited Medfinco Ltd. Abacus Holdings Limited Aver Trustees Malta Limited Fiduciaire Limited Mercury Management Limited Amicorp Malta Limited AVMT (Trustees) Limited Fiduciary Trust Limited MGI Fiduciary Services Limited Ongoing market volatility is a constant reminder of how important it is to protect or enhance Trusts & Foundations Bentley Trust (Malta) Limited Baltimore Fiduciary FINAC Limited Mifra Consultants Limited the value of assets. From tax to succession planning, and the holding of company shares to Claris Capital Limited Services Limited Finaserv Consultancy Ltd. Moore Stephens Fiduciary gifting property to children, Malta trusts and foundations are the ideal financial instrument Credence Holdings Limited One of the few civil Bank of Valletta plc Finco Control Company Limited Limited for those seeking solutions to their wealth management requirements. CSB Trustees and law jurisdictions that BCGL Services Limited FJV Fiduciary Limited MSD Holding Limited Fiduciaries Ltd has developed its own BDO Consult Limited FPC Wealth Management MSS International With almost 130 Maltese and international fiduciary companies licensed to offer trust and DNT Fiduciary Limited domestic trust law; Bentley Trust (Malta) Limited Limited Services Limited trustee services on the island, including organisations such as Maitland Group and Bentley Dr Bertrand Sciriha Blevins Franks Gamma Limited FZD Trustee & Fiduciary N Trust Limited Trust, this is a growing segment of the financial services offered by Malta, and one that is Dr Christian Farrugia Recognition of trusts set Blevins Franks Trustees Limited Services Limited Notabile Fiduciaries Limited expected to continue expanding rapidly. Dr David Mallia up under foreign laws; BSI Trust Corporation G. & G. Trustees & Osiris Trust Limited Dr Tonio Fenech (Malta) Limited Fiduciaries Limited PCL International Holdings Ltd. Elise Trustees Limited Authorised Trustees Offering the set-up of domestic BT International Limited Ganado Trustees and Peralta Custodian Limited Equinox International Limited Authorisations in terms of the Trusts and Trustees Act trusts and foundations; CAC Fiduciary Limited Fiduciaries Limited PKF Fiduciaries International Ltd. FBS Trust Limited (Trustees / Fiduciary Service Providers / Administrators of Private Foundations) Camco Holdings Limited Globserv International Ltd Plethora Management Ganado Trustees and Legislation published Capricorn Trustees Ltd GM Corporate and Fiduciary Services Limited Fiduciaries Limited Source: Malta Financial Services Authority, September 2012 in English; Cavalier Trust Services Limited Services Ltd Premier Fiduciary and Mr Guido Mizzi 140 Chartered Trust Limited GMA Holdings Ltd Trusts Limited Iuris Fiduciary Services EU and eurozone location; Citibank International plc Grand Harbour Trustees Primei Fiduciary Ltd 130 PCL International Holdings Ltd. Claris Capital Limited Limited QUBE Holdings Limited Peter J. Griffiths 120 High professional standards Classic Services Limited Grant Thornton Fiduciaire Ltd R.V. Services Limited Premier Fiduciary and 110 with many accountants, Corporate Services Limited GSB Fiduciaries Limited Rank Professional Trusts Limited bankers, lawyers and CREDAL International Ltd GSN Limited Services Limited 100 Qube Holdings Limited investment advisors holding Credence Holdings Limited GVM Holdings Limited RBG Fiduciary Services Limited 90 STM Malta Trust and Company 98 108 118 123 126 overseas qualifications and CRV International Limited H&P Trust Company Safehaven Internatinal Limited Management Limited 80 having overseas experience; CSB Trustees and (Malta) Limited Salt Partners (Services) Limited SwissIndependent (Malta) Ltd Fiduciaries Limited Heritage Corporate Savona Holdings Limited 70 Trident Trust Company Fast-track authorisation for Custom House Global Fund Services (Malta) SB Fiduciary Limited 60 (Malta) Limited trustees licensed in other Services Limited HSBC Bank Malta p.l.c. Sovereign Trust (Malta) Limited Tri-Mer Services Limited 50 (approved) jurisdictions; D. G. Fiduciary Ltd. Hull Services Limited STM Malta Trust and Company Vistra (Malta) Limited 40 Deloitte and Touche Limited Integrated-Capabilities Limited Management Limited English-speaking country with DF Corporate Services Limited INTEGRITAS Trustees Limited Summa Fiduciary Services Ltd 30 Companies authorised a pro-business government. DNT Fiduciary Limited International Trust Ltd. SwissIndependent (Malta) Ltd to act as a Trustee or 20 Dominion Fiduciary Services Intershore Fiduciary TCV Management and to provide Fiduciary 10 (Malta) Limited Services Limited Trust Services Ltd. Services in terms of the Elise Trustees Limited Iuris Fiduciary Services Trident Trust Company 0 Trusts and Trustees Act Total authorisations Total authorisations Total authorisations Total authorisations Total authorisations EMCS International J P Morgan Trustee (Malta) Limited at end 2008 at end 2009 at end 2010 at end 2011 January 2013 3a Fiduciary Services Limited Services Limited and Depositary Tri-Mer Services Limited Ab Initio Limited EMD Trust Services Limited Company Limited TrustForte Fiduciary Limited Abacus Corporate (formerly LCI Services Ltd) Jyske Bank (Gibraltar) Unifin Services Limited Services Limited Equinox International Ltd. Management Limited Venture Services Limited Abacus Holdings Limited Exalco Financial and Trust Knights Fiduciaries Ltd Vicaro Services Limited Aegis Corporate Services Services Limited L and TD Fiduciaries Limited Vistra (Malta) Limited Limited F and F Trust Services Limited La Vallette Fiduciaire Limited W&D Fiduciary Services Ltd

Source: Malta Financial Services Authority, January 2013 16 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 17 A Leading Domicile for Asset Protection Key Reasons for Malta’s Success

Malta is one of the few jurisdictions that cater for both trusts and foundations. While trusts are One Jurisdiction, Offering Protection Value for Two Solutions and Security Money peculiar to systems of law based on common law and are not generally found in civil law countries, Malta, a civil law country, is an exception to this rule. Malta trusts and foundations benefit from a Skilfully combining all the features of Offering a high level of protection and Malta offers another key attraction to the Anglo-Saxon trust concept within regulation, the advantages of locating people choosing a jurisdiction to set number of advantages when compared to other trust jurisdictions and the country’s lower set-up and a civil law framework, the Malta trust a trust or a foundation in Malta are up a trust or a foundation: significantly management costs are proving attractive to both corporate entities and high-net-worth individuals. is an effective and reliable vehicle that numerous. They include Malta’s lower set up and administrative costs. On provides both certainty and security. The specific legislation that creates a highly average, setting up a trust in Switzerland Malta trust offers a useful and practical regulated environment offering a high will cost a minimum of 5,000 euro; vehicle that gives settlors the peace of degree of assurance. In Malta trustees in Malta the cost of setting up a fully- mind that comes with a highly regulated, and foundation administrators have to fledged trust is around 1,500 euro. EU environment, while remaining be authorised by the Malta Financial Professional fees in Malta, including trust faithful to the original concept of a trust. Services Authority (MFSA), and are management fees, legal fees and audit With legislation in place to regulate the highly regulated, with audits taking fees, are also significantly lower than in similar specific serving setting up of foundations, through which place at least once a year. More than other jurisdictions, while the country’s + = qualities characteristics particular needs founders are able to maintain a level of 120 companies are currently authorised professional service providers enjoy an control on the direction of the estate, to provide these services. With its excellent reputation internationally. Malta offers an additional instrument for service-driven culture, the MFSA has wealth management, tax and succession gained a reputation as an effective and planning. While there are a number responsive regulator of the industry. of similarities between trusts and foundations, there are also substantial distinctions. With both concepts firmly established, Malta is ideally placed to Differences between answer the most diverse of needs. Malta Trusts and Foundations

Trusts Foundations

Do not have a separate Have a separate legal personality legal personality Defined in terms of the assets Defined in terms of relationship making up the foundation

Foundation is the legal Trustee is the legal owner of the assets owner of its own assets 18 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 19

Familiar Tools EU Location of Full Control Customised An Instrument Free Choice of and Systems High Repute of Assets Trust Set-ups for Business Trust Law

Malta, as a civil law country, offers a Malta offers a highly-regulated, Malta’s legislation also caters for the While trusts have been recognised The trust law identifies a number Malta does not offer ‘off-the-shelf’ trusts: more familiar legal terrain to people from well-respected, sophisticated EU establishment of private or purpose in Malta since the 1980s, a key of commercial scenarios within each trust is structured carefully to other civil law countries, which include environment and the country is fast foundations, which continental instrument in the attraction of wealth which the use of trusts would attract reflect the requirements of the settlor, to all mainland European countries. While becoming the wealth management Europeans generally prefer to trusts management activities to Malta is the more favourable treatment. These ensure a set-up which is both flexible and the Maltese trust is based on the Anglo- jurisdiction of choice for people from because they allow the founder Maltese Trusts and Trustees Act which include security trusts, unit trusts or responsive to any changes. This includes Saxon concept of trusts and incorporates across the world. Historically, trusts to continue to maintain a level of introduced domestic trusts and came collective investment schemes and the option to have the trust governed by all the features and flexibility of such a or foundations have been seen as control on the direction of the estate. into force in January 2005. This has securitisation, amongst others. One the laws of a country other than Malta. structure, in Malta a trust is also given instruments designed to maintain Unlike trusts, foundations have a helped to transform Malta into a major of the great attractions of the trust for Indeed, while a continental European legal recognition in relation to other areas discretion and have been associated with legal personality and the foundation trust jurisdiction. The Act created a the transaction planner designing a may be happy to have his trust governed of the law and is created with sufficient tax avoidance structures. A Malta trust itself becomes the legal owner of the streamlined and simplified trust regime, business deal is the convenience of being by Malta, a civil law country, somebody legal powers to be able to manage or foundation offers security, assurance foundation estate. Based on Maltese and made Malta much more attractive able to absorb into the ground rules for from Australia, for example, might conflicts between the two systems of and flexibility in an EU regulated company law principles and Italian and to international clients by offering the business deal those fundamental prefer to have his trust governed by a law, without invalidating the trust. This environment, while maintaining the French civil law provisions, Maltese greater flexibility and high standards principles of fiduciary law that protect common law country, such as the United is achieved through some mandatory principle of confidentiality that settlors foundations require the appointment of of certainty. The legal framework trust beneficiaries of all sorts. These Kingdom. Maltese law permits the settlor rules which are at the basis of a civil expect. Internationally, the island’s administrators, who are responsible for surrounding Malta trusts allows for attractions have made the trust a to choose to have his trust governed by law system prevailing on the terms of reputation as a location to establish the administration of the foundation’s the creation of customised solutions reputable alternative to other devices, the laws of another jurisdiction provided trust. A relatively new concept for Malta, and manage private and commercial assets, and these are regulated under for each individual trust set-up. such as contract and incorporation, this is specified in the trust deed. foundations provide an alternative trusts is growing significantly as the the Trusts and Trustees Act. whenever the relationship to be structure to the trust institute and have demand for secure solutions to wealth established is too delicate or too novel. proved a popular vehicle with the island’s management issues increases. continental clientele. An interesting aspect of Malta’s legislation is also that it allows for the conversion of a trust into a foundation and vice versa, a facility which adds even further flexibility to financial management undertaken in Malta. 20 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 21 Regulation & Oversight AT A GLANCE

Malta’s legislation on trusts and Trust law Foreign Trusts Law on Foundations • Persons may carry on the activities foundations has developed over the as trustees either in a professional Malta’s law is essentially a civil law system Whether a trust is governed by foreign Maltese Foundations are regulated by the or in a private capacity. The MFSA past decades. Today the framework with a civil code based on Roman law law or by Maltese law is a question of Second Schedule of the Civil Code (Chapter choice. Settlors can also be rest assured 16 of the Laws of Malta), which dedicates gives a high degree of responsibility and the Napoleonic Code. However, as • A professional trustee may be Single regulator for all a result of 150 years as a British Colony, that foreign trusts will be fully recognised an entire sub-title to foundations. The law either an individual resident ,or financial services to the licensed trustees and Malta’s legal system is supplemented by in Malta. Malta does not only recognise on foundations adopts principles from operating in Malta, or a corporate trusts created voluntarily and evidenced the Maltese Companies Act, although it is foundation administrators in order the incorporation of English common trustee, either registered in Rigorous but fast, law, especially in commercial law. Trusts, in writing, as required under the Hague largely based on Italian and French civil Malta or operating in Malta. dynamic and flexible to ensure that trusts and foundations originally an institute of common law, Convention, but also recognises any other code provisions. It was introduced on the trust of property arising under the law 1st of April, 2008. It is possible to set up under their administration are have been recognised in Malta since the • An individual may act as a private Protecting Malta’s reputation. late 1980s. of another country, meaning that even both a private and a purpose foundation trustee if he is either related to the Focused on quality and compliant with the law. constructive or resulting trusts arising in Malta. settlor, by consanguinity or affinity integrity of industry players In 1988, the Maltese Parliament adopted under foreign law will be recognised and in the direct line up to any degree an Offshore Trusts Act, which introduced enforced in Malta. The setting up of a foundation entails the or in the collateral line up to the Supervision is risk-based Legal Framework the trust concept in a ‘ring-fenced’ manner registration of the deed of foundation with fourth degree, or he has known the to non-residents and was based on the Likewise, foreigners wishing to settle local authorities such as the Office for the settlor for at least 10 years. In both Licensing procedure The Maltese legal system boasts a unique Jersey model. To move away from the property in trust may opt to use Maltese Registrar of Legal Persons. The foundation cases, a private trustee cannot be is personalised blend of common law and civil law offshore regime, in 1994, Malta ratified law or foreign law for their trusts. In these gains its separate legal personality remunerated, cannot hold himself out ingredients, clearly illustrated by the the Hague Convention on the Recognition cases it is the law of the settlor’s domicile through this registration. As foundation as a trustee to the public and cannot Regulation is business sensitive presence of both trusts and foundations. and Enforcement of Trusts. A special law, which should apply to succession and administrators have fiduciary obligations act habitually as trustee (meaning the Recognition of Trusts Act, 1994, was other patrimonial issues and not Maltese towards the beneficiaries, they too require that he cannot act as trustee to more Regulator is approachable and • The setting up of trusts in Malta enacted to implement the convention in law – even if Maltese law is chosen as the licensing in terms of the Trusts and than five settlors at any time). meetings can easily be arranged is regulated by the Trusts and Maltese law. From then onwards, Maltese proper law of the trust. The Maltese rules Trustees Act. Trustees Act. The Act provides Courts were able to recognise the validity of reserved portion and ‘forced heirship’, • Private trustees do not need to be for the creation of trusts and and enforceability of trusts governed by whereby the assets of a deceased person Authorisation and authorised by the MFSA, whereas authorisation and supervision of a foreign law and to give effect to their must be divided as prescribed by law, will Supervision of Trustees professional trustees, resident or trustees by the Malta Financial terms even if the settlor of the trust was therefore only apply if the settlor was operating in Malta, are required to Services Authority (MFSA). The Act a Maltese resident. This has led to trusts domiciled in Malta at the time of his/her The Malta Financial Services Authority obtain authorisation, irrespective incorporates within its provisions being used in Malta freely, although it was death. (MFSA) is the single regulator for all of the proper law of the trusts they the Hague Convention on the Law not possible to use Maltese law as the law financial services in Malta and as such hold and whether or not all or part Applicable to Trusts and on their governing the trust. When Maltese law is governing a trust, the is responsible for the authorisation and of the trust property is in Malta. Recognition, which Malta has ratified. Civil Code and the Trusts and Trustees Act supervision of trustees and foundation To change this, the drafting of a new trust will govern the trust. However, if a Maltese administrators. The regulator is generally • A foreign person who has a licence • While foundations have been law began in the early 2000s. The Trusts law trust is set up but has no connection to described as being open to the needs of the or authorisation to act as trustee recognised and regulated in Malta and Trustees Act was enacted in 2004 and Malta because of the domicile of the settlor, business community but also firm in its in an approved jurisdiction can for almost 200 years through Maltese came into force in 2005. or the location of immovable property, the approach to the regulation of the industry. benefit from a fast-track application. case law and doctrinal writings, trust will be governed exclusively by the He/she is not required to submit in 2007 Malta enacted specific • It allows Maltese or foreign settlors Trusts and Trustees Act. The MFSA invites potential trustees a full application, but will only legislation to clearly define their to establish trusts governed either seeking an authorisation to operate in need to follow a notification legal framework. The law regulating by Maltese law or by a foreign law. Malta to meet with the regulator to ensure procedure with the MFSA. foundations is today found in Act that both the interests of the business and XIII of 2007 which introduced the • With this law, Malta also eliminated compliance with all regulatory standards Second Schedule to the Civil Code ‘nominees’ from its legal system are met (see ‘Setting up a Trust Business’). (Chapter 16 of the Laws of Malta). thus abiding by its international The following persons can act as a trustee commitments to the OECD and in Malta. FATF and effectively introduced trusts into the Civil Law of Malta. recognition of strong Maltese variety of foreign trusts + trust law = options With practitioners having more than 30 years of experience, Maltese trust practice and the law on trusts continue to evolve. 22 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 23

Trusts in Malta Key Features of a Trust

Malta has introduced a special law that allows for the set-up of Maltese Means of establishment: A trust may be created unilaterally or Trust Deed: The Trust Deed is the instrument whereby the trust bilaterally, by oral declaration or in writing. A unit trust must is created and includes the terms of the trust and may also be in trusts. The procedure for establishing a trust in Malta is relatively easy. The always be created in writing. the form of a unilateral declaration of trust. For example, a Trust security of the assets and confidentiality are the two main criteria. Deed may provide for the addition of new beneficiaries (e.g. for The Settlor: The settlor is the person who sets up the trust. unborn children) or the exclusion of a specific benefit to certain A trust under Maltese law is a legal agreement between two parties: the settlor and the trustee. The The settlor must be of age, have full capacity to contract and a beneficiaries under conditions clearly stated in the Trust Deed. settlor places assets under the control of the trustee for the benefit of a beneficiary/beneficiaries or for free disposition of the assets settled on trust. While imposing a particular charitable purpose. The assets could include bank accounts, real estate, stocks and bonds, fiduciary obligations upon the trustee in favour of the Letter of Wishes: The settlor can guide the trustee in a separate furniture or art. As a result, a trust is seen as an efficient tool for estate planning as it is more flexible than beneficiaries, trusts do not leave the settlor with any rights in letter of wishes on how the trustee should exercise his a will and can be used to ensure that family wealth is secured and protected. relation to the trust property – except as specifically provided discretion. Depending on the relationship between the settlor for in the Trusts and Trustees Act. The Trusts and Trustees Act and the beneficiaries, the settlor can inform the beneficiaries of lists the settlor’s rights (which may be supplemented by the this letter, however, he/she may also choose not to disclose this trust deed) as follows: letter to the beneficiaries. • The settlor has the power to seek court directives as to trust validity; Legal Form: A trust is a form of legal institute which does not have • The settlor has the right to a variation of terms and its own legal personality. Trusts are not registered anywhere and revocable trusts where the Trust Deed so provides; there are no formalities for the annual maintenance of trusts • In cases of trust termination, interest lapses or no existing other than statutory obligations that are imposed on trustees in or possible beneficiary, the trustee holds the trust property the administration of trusts (e.g. for example the duty to prepare for the settlor (or his or her heirs) absolutely; and accounts). • It is the trustee’s duty to provide the settlor with information, subject to the terms of the Trust Deed. Set-up time: There are no statutory restrictions that could delay the setting up of a trust in Malta. Therefore, the time required The Protector: The protector is typically a person who is in a depends on the particular circumstances and mainly relates to trustworthy position (e.g. the family lawyer). The protector may the drafting of the Trust Deed. also act as investment advisor. Subject to the trust terms, the protector typically has the power to: Termination: A Malta trust is subject to a maximum duration • Appoint new and/or additional trustees; of 100 years, however, it can be terminated earlier if all • Remove trustees; and beneficiaries acting in unison demand termination, which the • Require trustees to obtain the protector’s discretion trustees must accept. (including approval) in relation to particular matters e.g. purchase / sale of trust property. Attacking trusts: A creditor would need to take action against the trustee. As the assets of the trust are not the personal assets The Beneficiary: The beneficiary is the person who may of the trustee, only the trust assets are exposed. Trust assets benefit from the assets of the trust. All beneficiaries have might be subject to precautionary and executive warrants (such to be mentioned by name or are ascertainable by class or by as garnishee orders, injunctions and warrants of seizure) which relationship to a person alive or dead. For instance, children can be issued by Maltese courts. not yet born or conceived may be beneficiaries. The rights of the beneficiary are personal and are regarded as movable property. Ensuring trustees’ performance: Professional trustees are licensed Subject to the trust deed, the beneficiary may sell, charge or deal by the MFSA, which has also issued a code of conduct to provide with his or her interest in any manner, provided that this is done guidance to trustees as to the standards required under the Trusts in writing. and Trustees Act and other financial services legislation, as well as to the best practice in the industry. Trustees must exercise The beneficiary has the right to information from the trustee their fiduciary duties prudently and competently and, subject and may seek court directives regarding the validity of the trust. to the terms of the trust and the provisions of the Trusts and SETTLOR TRUSTEE The beneficiary may also disclaim his or her interest, or part Trustees Act, consider the rights of all beneficiaries when making thereof. decisions affecting the administration of the trust. If a trustee Transfer of Trust Holds on BENEFICIARIES fails to administer a trust in accordance with the law and the Property to ❱ Trust for ❱ respective trust deed, the trustee is liable for such a breach and can be sued for it. 24 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 25 Trust Forms

Maltese law recognises all the Discretionary Spendthrift Trusts / Charitable Unit Accumulation & Trusts Protective Trusts Trusts Trusts Maintenance Trusts main types of trusts one would normally find in traditional Main Characteristics: Trustees normally Main Characteristics: These trusts are Main Characteristics: This definition Main Characteristics: Unit trusts are a Main Characteristics: The trust fund have choice or discretion as to how to created by the settlor with the specific aim has a wide interpretation and can cover popular investment vehicle. They are creates an endowment for the beneficiaries common law jurisdictions. They manage and invest trust property and of providing a level of protection of trust a number of types of trusts. Generally, used for the creation of pension schemes, whoever they may be. The trustee invests can be used for a wide variety of to whom, when and to what extent they assets from access by beneficiaries. They these trusts are for a specific charitable employee benefit plans and collective the trust fund to meet the specific needs distribute trust income and/or capital. usually have more than one beneficiary. purpose, for a specific charity or for a investment funds. They are usually identified in the Trust Deed. This type of purposes, for asset protection, for Only after this trustee discretion has been A discretionary trust may be used and specific public benefit. Trustees may have open-ended investment schemes. The trust can be a discretionary trust. estate planning, as a commercial exercised in his/her favour, a beneficiary’s the trust deed may have specific wording greater freedom to act or not act. The participant or unit holders in a unit trust potential interest is changed to a right to to support the trustee in their decisions trust might be registered for a charitable have property rights that can be enforced Main Advantages: The performance of tool or for testamentary usage. trust property. However, the trustee must on control of spending as it would be purpose which provides an element of against the fund manager of the schemes trustees in delegating the investment exercise his discretion within the terms of depriving a beneficiary of a right to income public enforcement. These trusts are the or the unit trustees. There is no special should create an expectation of required the trust. Under Maltese law, the trust deed or capital. only trusts that can last for more than 100 provision in Maltese law covering unit performance to meet the need identified. can contain a provision allowing trustees years. trusts, which are therefore treated in the This trust looks to identify and cover to appoint new beneficiaries if: Main Advantages: It provides a structure same way as ordinary Maltese trusts. specific needs. Fixed Interest to limit a benefit to beneficiaries. It also Main Advantages: This type of trust may Trusts • The person to be appointed can either protects assets against creditors of a provide certain tax advantages, especially Main Advantages: Unit holders may Main Uses: This type of trust could be be identified by name or by reference beneficiary/beneficiaries which could be if the charity has a recognisable charity prefer this type of ownership right since used to meet specific needs of education Main Characteristics: The beneficial to a class of beneficiaries; and to the detriment of other beneficiaries. status. Setting up a charitable trust is the property is held by a trustee and not by or the total welfare of a child to adulthood. interests under a fixed trust are fixed, Due to this protective advantage such a potentially one of the best methods of a company. Sometimes these trusts are established by which means that the share of the value • Where identification is by reference trust can also be described as an asset providing a legacy for the benefit of a grandparents for their grandchildren. of the trust property the beneficiary will to a class, the beneficiaries of that protection trust. charitable purpose during a person’s Main Uses: Nearly any type of pooling receive is defined in the Trust Deed. class must be ‘reasonably individually lifetime or after death. of investors in an investment project This trust typically limits the trustee’s identifiable’ (e.g. the children, born or Main Uses: Spendthrift trusts are used could be established as a unit trust. Other discretion; often the trustee would be to be born of Mr. X & Mrs. Y); and the if beneficiaries are considered to be Main Uses: These trusts generally fall commercial transactions to hold property using their administrative power to identification must be made either in spendthrifts and there is concern that into four categories: relief of poverty; can also be constructed as a unit trust. comply with the Trust Deed. The trust may the trust instrument or in any other assets would be eliminated unwisely. promotion of education; promotion of These can involve complex commercial involve a number of named beneficiaries written instrument by the settlor, They can also be used to limit access to religion; or the promotion of animal and/ arrangements for insurance, pensions, with identifiable interest in trust property. whether binding or not on the trustee. assets if a beneficiary has an identified or another welfare purpose for the benefit exporting and financing. Therefore, these trusts are often referred abuse issue. of the public. to as ‘interest in possession’ trusts because Main Advantages: A discretionary trust the beneficiary has a fixed entitlement to allows the trustee to respond to changing part of income or capital, a right that can circumstances. This trustee flexibility is a be assessed. distinct advantage of a discretionary trust. However, it is the trustee’s fiduciary duty Main Advantages: The outcome is more to act in the interest of the beneficiaries. certain for the settlor and the beneficiaries. However, the fixed interest trust limits Main Uses: A settlor may leave money flexibility and as the entitlement can be in trust for his children and the trustees assessed as a right, it may provide a more shall decide how to distribute those immediate tax consequence depending on funds. If one child gets married and has the tax laws of the jurisdictions involved. children of his own, there may be good reason for the trustee to decide to give that Main Uses: The settlor may have adult child more funds. Another example is if beneficiaries and wish to specifically one of the children refuses to search for divide his estate. There may be a specific employment, it might be useful to limit requirement to provide income support the benefit to encourage the potential on a regular basis to certain beneficiaries. beneficiary to act responsibly. 26 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 27

Foundations in Malta Registration A new legal of the deed person is created Creation of Drafting of the > with the Office of > which is distinct from a Foundation foundation deed the Registrar of its founders and Legal Persons administrators Previously regulated by customary law, a special law on foundations was introduced in 2008. While Key Features of a foundation adopts corporate principles, the law is mainly based on Italian and French civil code provisions. Foundations

Maltese legislation allows for the set-up of two types of foundations: Means of Establishment: A foundation can only be constituted Legal Form: Once the foundation is established and the deed Supervisory Protector: The deed can provide for a supervisory Private and Purpose Foundations, which have particular uses and in writing, either by a public deed or by a will. The foundation is filed, a new legal person is created and the foundation itself council or the office of protector. They usually exercise benefits for certain clients. deed must be registered with the Office of the Registrar of Legal becomes the owner of the foundation property. supervision over the acts of the administrators and may be vested Private Foundations Persons. with powers of appointment or removal of administrators. Termination: Except when foundations are used as collective These are set up for the benefit of a named person or class of Assets: The assets of a foundation may originate from any lawful investment vehicles or in securitisation transactions or in the Main Advantages: persons called beneficiaries. The foundation’s patrimony is owned business or activity and may consist of present or future assets case of purpose foundations (which may be established for an • Assets and liabilities are held by a legal person by the foundation itself (due to its separate legal personality) and is of any nature. The minimum endowment of money or property unlimited term), foundations are valid for a maximum term of separate from the founders or the administrators. administered by designated persons (known as ‘administrators’) for to set up a foundation must be worth at least €1,165 (and €233 for 100 years from their establishment. Thus, any potential debt and other liability that a the benefit of such beneficiaries. a foundation established exclusively for a social purpose or as foundation might have can only be enforced upon non-profit making). Founder: its patrimony and not beyond, except to the extent Purpose Foundations Rights of the founder: that the promoters and members expressly agree Foundation deed: The Foundation Deed must • The founder may exercise supervision over administration to be so liable or as expressly provided by law; Such foundations have no ascertained or ascertainable beneficiaries contain the following information: of the foundation, obtain copy or copies of accounts, • Foundations can be converted into trusts and vice versa; but are established exclusively: • The name of the foundation, which must inventory and descriptive notes of property; • Although a foundation needs to be registered, include in it the word ‘foundation’; • He/she may intervene in court proceedings concerning the only a minimum of information in relation to • For any charitable, philanthropic or other social purpose; • The registered address in Malta; appointment of administrators or the disposal of assets. a private foundation is available to the public, • The purposes or objects of the foundation; therefore confidentiality is guaranteed; • As a non-profit making organisation; • The constitutive assets with which Conditions for the founder: • A foundation would hold title to its assets; the foundation is formed; • The founder may also be an administrator; • A foundation may have more than one founder and the • For any other lawful purpose (not necessarily a • The composition of the board of administrators, and if • The founder may be a beneficiary during his lifetime, but founder(s) may be an individual or a legal person; social purpose and can be a private purpose). not yet appointed, the method of their appointment; cannot then act as sole administrator of the foundation. • Protectors and a supervisory council can be appointed, • The legal representation (a local representative and thus, independent persons can be appointed is necessary if the administrators of the Administrator: to supervise the acts of the administrators; foundation are non-Maltese resident); and Duties of the administrator: • Beneficiaries can be individual, legal • The term for which it is established. • The administrators (whether natural or legal persons or even other foundations; • In the case of a private foundation, the deed of persons) are responsible for maintaining possession • Maltese law also allows the creation of segregated foundation must contain the names of the beneficiaries, and control of the property of the foundation, cells, which segregate assets and liabilities from or in the absence of such indication, a declaration that safeguarding such property and ensuring compliance other assets and liabilities, within a foundation. the foundation is constituted for the benefit of the with the statute of the foundation and the law; beneficiaries. In the latter case, the beneficiaries must • They are bound by fiduciary obligations stipulated in the Main Uses: be indicated in a separate legal instrument, known Civil Code. Any fiduciary who breaches such obligations • Foundations are used for similar purposes as trusts. as a beneficiary statement, which must be signed shall be bound to return any property, together with Common uses include: tax and estate planning, asset by the founder, addressed to the administrators and all other benefits derived by him, whether directly or protection planning or assistance to charities. authenticated by the Notary Public who has published indirectly, to the person to whom the duty is owed. • Foundations are prohibited from trading. However, the foundation deed. In order to protect confidentiality, a foundation may be endowed with commercial the beneficiary statement does not need to be filed; Conditions for the administrator: property or a shareholding in a company or other in its stead a note of reference referring only to the • The administrator can be based outside Malta; however, asset which gives rise to income, as long as the founder is filed with the Registrar of Legal Persons. a person resident in Malta must be appointed to act as foundation is only the passive owner of such assets. the local representative of the foundation in this case; • The administrator may be the founder; however, in such situation, the founder cannot be the sole administrator. 28 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 29 Setting up a Trustee Business in Malta

Malta is successfully competing with other more traditional trust centres. The country has made a name for itself as a reputable jurisdiction, in which trustees must meet stringent ‘fit and proper’ criteria prior to obtaining a Ideal environment Application for Accessible + Re-domiciliation = licence to act as trustee for the benefit of the industry in Malta and individuals setting up a trust or a foundation. regulator legislation for trust companies authorisation The MFSA may grant a general authorisation but can also Licensing Licensing Conditions restrict the authorisation to certain activities. As a first step, applicants are encouraged to contact the Authority prior to The Trusts and Trustees Act provides a framework for professional Potential trustees have to satisfy the following conditions: submitting a formal application to discuss their proposals. and private trustees. Administrators of a private foundation Applications then have to be made in writing to the MFSA established or operating in Malta for the benefit of a private interest Company on the required application form and accompanied by or purpose which is not charitable also require licensing under the the application and processing fee and the following same Act. • Its objectives must include acting as trustee and documentation: carrying on activities ancillary or incidental thereto; Private Trustees • Personal questionnaires filled in by the individual • Its activities must be compatible and or key personnel in the case of a company (e.g. • Do not require authorisation to act as a trustee from connected with trustee services; qualifying shareholders, CEO, directors); the MFSA but are bound to follow a strict notarial procedure. A private trustee has to declare in a notarial • Company directors must number at least • Memorandum & Articles of Associations (in deed that he/she fulfils the requirements for private three and be approved persons; the case of a juridical person) or a certified ID trustees and does not need to be licensed. card/passport and police conduct certificate • The company must have established adequate systems (in the case of a natural person); • Must be either directly related to the settlor or must for maintaining proper records of the identity and have been known to the settlor for the last 10 years. residence of beneficiaries, the dealings and the assets • Accounts; in connection with trusts (e.g. ensuring that trust funds • Cannot be remunerated. are kept at all times separate from those of the trustee • Copies of any standard trust and and also that they are not co-mingled with funds from management agreements; another trust) and compliance with the applicable law; Professional Trustees • Business plan; • Every person who has a direct or indirect interest

Professional trustees, whether individual or corporate, have to be in the company must be an approved person; authorised to operate in Malta by the MFSA. While establishing a • A group structure chart. trust company depends upon a number of factors, the reputation • The name of the company is not inconsistent and qualificatiion of the promoters is of paramount importance. with its trustee activity; In considering an application for authorisation to act as a trustee, the MFSA may: Advantages of setting up a trust business in Malta: • If the company is not registered in Malta, it must be a) Carry out any enquiries which it considers appropriate; constituted or incorporated in an approved jurisdiction. b) Ask the applicant, or any specified representative of • English is an official language and the the applicant, to attend a meeting with the Authority workforce is multilingual; to answer questions and explain any matter the Individual Authority considers relevant to the application; • Competitive costs; Fees c) Seek additional information from the applicant; • Must be resident in Malta or operating in Malta; and d) Visit the applicant to view proposed premises • Quality domestic trust law and recognition of foreign trust law; Trustees – Application and processing fee € 250 and files regarding business that is proposed • Must be an approved person; and to be transferred into the licensed entity; • Re-domiciliation law; One-time licence fee € 100 e) Request any information furnished by the • Must have established adequate systems for maintaining applicant to be verified in such manner proper records of the identity and residence of beneficiaries Authorisation fee as the Authority may specify; and of the dealings and assets of trusts (e.g. ensuring that (to be paid upon the issue of the authorisation) € 2,500 f) Take into account any other information which it trust funds are kept at all times separately from those of considers relevant in relation to the application; and the trustee and also that they are not mixed with funds Annual renewal authorisation fee € 2,500 g) Verify information submitted by the from another trust) and compliance with applicable law. applicant by reference to third parties. 30 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 31 Professional Services

Fast-Track Application Malta’s professional service providers are internationally A person (an individual or a company) who is already renowned for the excellence of their service and are well Top accountancy authorised to act as a trustee is not required to submit The Trusts and Trustees Act also provides that a person licensed networks with a presence/ another application to be able to act as an administrator in terms of the Banking Act, Investment Services Act or Insurance positioned to offer meaningful support and strategic guidance to correspondents in Malta Business Act, or a foreign person with an equivalent licence, acting of private foundations. However, the person is required anyone wishing to set up a trust or a foundation in Malta. to submit the following documentation to the MFSA: as a trustee (not in the course of ordinary business for which they are Deloitte licensed) must notify the MFSA of their intention to act as a trustee in A covering letter notifying the MFSA of the intention to act Malta at least 45 days prior to commencing activities in Malta. This Trust and Estate Practitioners: There are almost 130 licensed trust management PwC as an administrator of private foundations; notification procedure also applies to a person who has a licence or companies in Malta, offering specialised trustee and fiduciary services and providing authorisation to act as a trustee in an approved jurisdiction (such as clients with the highest level of protection and security. Among them are international Ernst & Young If the trustee is a corporate entity, a draft revised EU/EEA and OECD states). This allows a foreign licensed trustee to organisations but also many legal firms which own in-house trust companies. They act as memorandum and articles of association empowering the set up operations in Malta in a simplified manner. trustees and can assist in establishing a trust. More than 20 companies are also authorised KPMG authorised trustee company to act as an administrator of to act as foundation administrators. private foundations; BDO International Re-Domiciliation of Trust Companies Legal Services: Malta’s legal profession is long-established, and a large number of law An updated business plan; firms operate on the island. They are regularly listed in Chambers, Legal 500, and other RSM International Under the Continuation of Companies Regulations issued under the directories. All the leading international firms have a presence in Malta through associate Three-year financial projections (depending on the scale of Companies Act, 1995 it is also possible to continue a trust company links with local law firms. Many legal firms have specialised in assisting international Grant Thornton the business envisaged); from another jurisdiction to Malta without having to wind up commercial and financial operators looking at doing business with or locating operations its operations in the original country as long as the foreign trust to Malta. Most lawyers have post-graduate degrees in various practice areas, including Baker Tilly International Personal questionnaires of any individuals employed by company is established in an approved jurisdiction. financial services, or furthered their studies at major institutions overseas. They can assist an authorised trustee who will be involved in the day-to- in financial, legal and tax aspects of succession planning and estate management to ensure PKF International day administration of private foundations and are not yet a problem free and tax-efficient solution is found. known to the Authority; Advantages of Re-Domiciliation Moore Stephens International Accountancy and Audit: The international business community in Malta is strongly In the case of those officers and employees (including • Trustee remains the same; only its country supported by a large range of legal, accounting and auditing practitioners ranging from Nexia International directors) of an authorised trustee who are already known to of registration will change. small boutique practices to the global big four accountancy firms. There are also many the Authority and who will take part in the administration consultants on the island providing business advisory and back office support and other HLB International of private foundations - a declaration confirming whether • Trusts remain fully intact. services. Professional services costs are generally lower than in other Western European there have been any changes to the information disclosed locations. UHY International in their previously submitted forms. A new form would • No need to transfer trust assets. need to be submitted if the previously submitted personal ECOVIS International questionnaire is more than five years old. • A Maltese trustee can hold property under foreign law trusts. specialised complete high • Can possibly obtain EU-wide passporting rights. legal trust accountancy • Income originating from overseas is not subject to double expertise services standards taxation, even if there is no double taxation agreement in place. 32 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 33 Banking & Financial Services Real Estate

Malta has started to attract attention as a secure location to manage wealth and assets. The country’s banks Malta offers a wide range of commercial and residential property for rent are well capitalised and follow a conservative approach based on sound fundamental banking principles. or outright purchase. One of the advantages of Malta’s small size is that commuting time between Malta International Airport and an office is rarely greater than 20 minutes, and journeys are seldom longer than 40 minutes. International Banking Centre The Concept of Trust Accounts

With five retail banks and more than 25 international commercial While trusts are generally seen as an instrument used only by high- and trade banks already operating in or from Malta, this sector has net-worth individuals, a Maltese trust account offers the possibility Commercial Property become one of the most robust on the island. The island’s banks of enjoying certain trust related benefits on a bank account. A trust Given Malta’s small geographic area, there are few restrictions on where a business setting are able to provide a full range of personal, commercial and trade account is a deposit account based on the concept of a trust. The up in Malta can choose to establish its operations. In effect, the final choice will depend services to clients. HSBC and Bank of Valletta are the leading retail account is opened in the name of the bank which is responsible upon preferences and relative cost related to the quality and suitability of the property banks on the island. Smaller banks such as APS, Lombard, Volksbank for holding the funds for the benefit of the named beneficiary. concerned. and Banif Bank help to keep the banking sector competitive and The advantages of the trust account include: the fact that it is not innovative, while Malta is also home to specialists in trade finance frozen in the event of a death and does not form part of succession Type of Office Space such as FIMBank and BAWAG. proceedings; it offers an element of asset protection from creditors; it ensures confidentiality; and, for non-resident beneficiaries, it is Office space is available in purpose-built office blocks, in converted houses, flats or within tax exempt. Custodian Banking some of the new, large mixed-use developments. Malta offers enviable locations with sea views and marinas as well as prestigious landmark office complexes within easy commuting A trust account can be set up with a minimum deposit that is distance of residential areas. While many trustees prefer to work with custodians in other different for each bank, but ranges from 5,000 to 12,000 euro. The jurisdictions as part of their risk-management strategy, a number concept has gained considerable momentum and while it was Rental Costs of banks have acquired custodial licences in Malta. HSBC, one of initially deployed by the country’s two leading banks BOV and HSBC the world’s largest global custodians, is present on the island, while for the local market, the concept is now being exported by HSBC to Overall, rentals are around two-thirds to half of those charged for comparable commercial many other banks provide custodial services through international non-traditional trust markets where the local banking officers can spaces in continental Europe. partners. Malta is keen to increase the number of custodians, offer the product to their customer base and have the trust account however, apart from HSBC, Bank of Valletta, Mediterranean administered from Malta by HSBC. Costs of Commercial Space Bank, Sparkasse Bank Malta, Deutsche Bank and Custom House already hold a custody licence in Malta. In addition to the banks, Approx. Rental Prices Approx. Sale Prices a number of investment management companies provide services Investment Advisors Type of Office Space in € /m2 per annum in € /m2 to the industry and have strong relationships with international custodians. With approximately 120 investment services firms licensed in Prestigious 300-450 6000-8500 Malta, individuals or corporations seeking assistance in the Residential Property management of their assets are spoilt for choice. It is advisable that Professional 180-300 2400-4000 trustees refrain from providing investment advice. However, should In the past few years, Malta has become a settlor request such assistance, the trust deed should allow for the Economical 80-275 1500-2500 one of the most sought after locations appointment of an investment advisor, who would be responsible in Europe for foreign nationals seeking for providing investment recommendations, whereby the trustee Source: Belair Real Estate, 2012 to purchase homes as an investment or will be responsible for their implementation. for relocation purposes. A wide range of Locations residential property can be found in Malta, ranging from apartments, penthouses, Valletta: Malta’s capital Sliema/St. Julian’s: Other areas/types: Office townhouses to villas, with or without city is the administrative Sliema and St. Julian’s are space is available practically a pool. Developments in recent years centre of the island. The located on the peninsula all over the island. A include marina and coastal complexes Malta Stock Exchange and to the north of Valletta. number of business centres at the top-end of the market. The rental the Central Bank of Malta are Office space is available also offer ready-to-move market is steady and the property market in Valletta. Office space is in smart blocks, with into offices. They usually looks positive for the future, making 27 6 120 usually offered in prestigious sea views or without. include fully equipped investing in property an interesting banks custodians investment townhouses or century-old The Portomaso Business offices that are available opportunity. Gozo’s property tends to services firms palazzos. A number of offices Tower in St. Julian’s is one on demand with flexible appeal to the holiday rental or second have also been opened at of the prime corporate terms, meeting rooms and home market and is dominated by rustic the Valletta waterfront. addresses in Malta. a receptionist service. style farmhouses and modern apartments. 34 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 35 Communications Human Capital

Key Cross-border transactions and set-ups require Facts Service providers choosing to set up operations in Malta benefit from low cutting-edge telecoms and IT systems. Malta has labour costs. A university with an excellent reputation and a number of seen huge public and private sector investment other training institutes prepare people for a career in financial services, in ICT over the past 15 years and today the making it easy to find the right people for trust administration business. country boasts a truly modern infrastructure. Diligent, highly educated and multilingual, Malta’s telecoms network is reliable, stable and secure. As the Service Providers: GO, Call centres: The fact the Maltese workforce is the country’s What employers infrastructure has opened up to market forces, access rates have Melita and Vodafone are that English is an official greatest strength and most valuable asset. Average need to know increased and tariffs have lowered. the three main telecoms language, coupled with The key reasons are: Salaries (in €) service providers, while the good language abilities Probation: The length of the probation A Dynamic Cluster CEO 86,876.67 period is normally six months unless Malta hosts more than of the Maltese and the Multilingual. Maltese speak at least 200 IT companies. country’s good telecoms otherwise agreed by both parties. Malta’s ICT industry is a versatile and mature cluster, and the three languages, Maltese, English CFO 78,603.40 infrastructure, has made country hosts more than 200 IT companies, including international and Italian, in addition to another Malta a hub for call centres. 40 hours. giants such as Microsoft, Oracle and Cisco. Tecom of Dubai has language, usually French or German. Financial Controller 48,512.06 Weekly working time: Among the call centres chosen Malta as the location in which to build a European ICT and already set up in Malta Management Accountant 40,321.38 Employees in full-time media city on the models developed in Dubai, while Mircrosoft Educated. Some 60 per cent of students Leave: International is HSBC’s international employment are entitled to 24 days is currently setting up an innovation centre focused on cloud (18-24 year olds) continue in further connectivity & contact centre. Qualified Accountant 33,716.32 of vacation leave per year. Maternity computing. Malta’s top-level telecoms infrastructure has also education in some 85 institutes. bandwidth: Malta is leave for female employees in full-time turned the country into a centre for the processing of online internationally connected Skilled. Malta’s workforce possesses Account Administration 22,010.42 employment is 18 weeks. The law also payments and has attracted more than 250 eGaming companies through two satellite the skills the financial services industry provides for up to three months unpaid as well as outsourcing business such as disaster recovery, data Senior Compliance Manager 39,139.95 stations (one to the Atlantic parental leave in the case of birth, processing, data storage and database management. With 100 per requires. While many financial services Ocean region and the other Phone: Mobile telephony adoption or legal custody of a minor. cent of public services for citizens and enterprises accessible via professionals in Malta were educated Compliance Manager 29,592.18 to the Indian Ocean region) operators provide wireless the internet or mobile phone, the country is a leader in Europe in or gained professional experience in and four submarine fibre- Internet connections based Employers pay social the implementation of eGovernment policies. the UK, the University of Malta also Compliance Administrator 22,750.00 Social security: optic links to mainland on GPRS technology, and offers degree courses in financial security contribution at a rate of 10 Europe, two of which are Voice Over Internet Protocol services and provides a fresh stream Trust Supervisor 21,996.75 per cent of the basic wage paid to their operated by GO and the Services (VOIP), enabling of graduates every year. Staff working employees, subject to a minimum of others by Vodafone and companies to make across all sectors of the industry are also Trust Administrator 18,075.25 €15.35 per week and a maximum of Melita respectively. All substantial cost savings trained at the Malta College of Arts and €35.39 per week. Employees pay another operators say their cables on telecommunication Technology (MCAST), the Institute of Source: Castille Resources, Salary Survey 2011 10 per cent of basic wages, subject to ICT RANKINGS are designed to carry expenses. Financial Services Practitioners and the the same minimum and maximum. a lot more traffic than Malta International Training Centre, an current levels and their educational centre that was specifically Government prioritisation of ICT 4 capacity is unlimited. established to support the financial Attracting Foreign Talent Importance of ICT to government's vision of the future 4 services industry through the provision Postal services: Postal of technical training. Various courses are The island’s incredible climate and comfortable lifestyle also make it easy to attract foreigners Impact of ICT on access to basic services 14 services are provided by offered annually to train both students to take up positions in Malta’s finance industry. Malta’s laws on immigration are in line with Maltapost Plc. Delivery is and staff on fund administration, the European Union’s visa obligations for foreign nationals. While EU and EEA citizens are Impact of ICT on new services and products 21 Data centres: Data efficient and reliable with valuation, accounting, portfolio free to work and reside in Malta, non-EU nationals must apply for and obtain an Employment centres are operated by a three-day service to most management, and fund incorporation. Permit, and the granting of the application is subject to a labour market test. Broadband internet subscriptions per 100 population 16 the telecoms operators mainland European cities. with their own fibre-optic All the main international Value for Money. Labour costs in Mobile network coverage rate 1 cables but also by other courier services are Malta are two thirds of those in other telecoms companies, represented on the islands. Secure internet servers 11 Western European jurisdictions. allowing companies to Internet & telephony competition 1 choose between a range of service providers.

Source: The Global Information Technology Report 2012, World Economic Forum 36 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 37 Taxation in Malta

Malta has a strong international treaty network and its tax Highly Qualified Professionals system has been approved by the EU and the OECD. To attract highly qualified personnel to the financial services industry, Malta has Corporate Tax Taxation of Key Vehicles introduced a new incentive scheme in 2011 targeting well-paid foreign executives. Malta offers a highly efficient fiscal regime which avoids double taxation on taxed company profits distributed as dividends. Malta companies are taxed at a rate of 35 per cent. However, Banks and Financial • Individuals who have their domicile a full imputation system applies to the taxation of dividends, whereby the tax paid by the Institutions: Banks and financial outside of Malta and who are company is imputed as a credit to the shareholder receiving the dividend. Following the institutions are taxed like all employed in senior positions distribution of a dividend, shareholders are also entitled to claim a tax refund of 6/7ths of companies registered in Malta. with a company that is licensed or the relevant tax paid in respect of trading income and 5/7ths of the relevant tax paid in the Personal Income Tax in Malta recognised by the Malta Financial case of passive interest and royalties. The refund is reduced to 2/3rds where the distributing Insurance Companies: Services Authority to conduct company claims double taxation relief. Special provisions apply to the Individuals are charged on their income at progressive tax rates up to a maximum financial business in or from Malta, determination of total income rate of 35 per cent. However, Malta will reduce the top rate of income tax over the next can benefit from a flat personal Income and gains from a participating holding (where a company holds directly at least from the business of insurance. three years to 25 per cent for those who earn up to €60,000. Tax liability in Malta is income tax rate of 15 per cent on 10 per cent of the equity shares of a non-resident company, or meets certain other criteria) based on the following conditions: income up to 5 million euro. are exempt from tax. Alternatively, instead of claiming this exemption, a company can Insurance Managers: Insurance choose to pay tax at the normal tax rate and then receive a full refund of the tax paid upon a management companies are taxed like Rate Single Joint Parental • Any income over €5 million distribution of dividends. all companies registered in Malta. Each Computation (€) Computation (€) Computation (€) will be tax-free. cell in a PCC or an ICC is treated as a Malta’s tax system has been deemed by the European Commission to be compliant with EU separate company for tax purposes. 0% 0 - 8,500 0 - 11,900 0 - 9,300 • To qualify for this tax incentive non-discrimination principles and has also gained approval from the OECD. Fund Managers / Fund the employee must earn a 15% 8,501 - 14,500 11,900 - 21,200 9,301 - 15,800 minimum of €75,000 per year, Administrators: Fund managers amongst other criteria. and fund administrators are taxed like 25% 14,501 - 19,500 21,201 - 28,700 15,801 - 21,200 all companies registered in Malta. The Highly Qualified Persons Rules 2011 32% (2013) 19,501 - 60,000 28,701 - 60,000 21,201 - 60,000 apply to the following executive positions, Investment Funds: Malta-domiciled 29% (2014) 19,501 - 60,000 28,701 - 60,000 21,201 - 60,000 amongst others: Chief Executive Officer, funds are, as a general rule, exempt 25% (2015) 19,501 - 60,000 28,701 - 60,000 21,201 - 60,000 Chief Risk Officer, Chief Financial Officer, from Maltese income and capital gains Chief Operations Officer, Chief Technology tax as long as they do not have over 85 35% 60,001+ 60,001+ 60,001+ Officer, Portfolio Manager, Chief per cent of their assets situated in Malta Investment Officer, Senior Trader/Trader, www.ird.gov.mt/services/taxrates.aspx Senior Analyst (including Structuring Trusts: When all the beneficiaries Professional), Actuarial Professional, Chief of a trust are not domiciled/resident Individuals are taxed on the following basis: Underwriting Officer, Chief Insurance in Malta and where the trust assets Technical Officer, Head of Marketing and are situated outside Malta, no Maltese A person who is ordinarily resident and domiciled in Malta is Head of Investor Relations. income tax (or transfer duty) is payable. subject to tax on his worldwide income and capital gains. EU nationals can benefit for an unlimited Basis of Taxation Foundations: A foundation may A person who is resident but not domiciled in Malta is taxed on income and capital gains period from the reduced tax rate, EEA be treated as a Maltese company and arising in Malta and on foreign income (but not foreign capital gains) received in Malta. and Swiss nationals for a period of five A company incorporated in Malta is considered to be ordinarily resident and domiciled in benefit from Malta’s full imputation consecutive years, while third-country Malta and is subject to tax on its worldwide income and capital gains. system. Foundations may also opt to be Non-resident individuals are subject to tax on income and capital gains arising in Malta. nationals for four consecutive years. These taxed in the same manner as a trust. periods commence in the year in which the A company incorporated outside Malta is considered to be resident in Malta if its Residence will be based on where a person effectively lives and has a home. The recipient of the benefit/the professional management and control is exercised in Malta. But as the company is not domiciled in Retirement Schemes: Licensed Department of Inland Revenue will consider individuals who have spent in the first becomes liable to tax in Malta. Malta, it is subject to tax on income arising in Malta and on foreign income (but not capital retirement schemes are exempt from aggregate more than 183 days in a tax year in Malta as residents of Malta. gains) that it receives in Malta. tax on income and capital gains but this does not apply to immovable A company that is not incorporated nor managed or controlled in Malta is subject to income property situated in Malta. tax only on income and capital gains arising in Malta 38 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 39

Double Taxation Treaties

Malta has signed agreements for the avoidance of double taxation with over 60 countries. The Maltese tax system also includes Commonwealth Travel & Living relief, unilateral relief and the flat rate foreign tax credit, thereby ensuring that income arising from overseas is not subject to double taxation, even if there is no double taxation agreement in force.

Malta has an extensive network of Albania Australia Austria Bahrain Barbados Belgium Bulgaria Canada Malta’s mild climate and sparkling blue seas make for a double taxation treaties business environment that is second to none: compact but cosmopolitan, sophisticated but stress-free. In today’s hectic

Czech world, Malta offers the perfect balance between work and China Croatia Cyprus Denmark Egypt Estonia Finland France Republic relaxation. Long sunny days and beautiful surroundings provide for an enviable outdoor lifestyle, and with its short distances, you can wave goodbye to long commuting hours and Georgia Germany Greece Hong Kong Hungary Iceland India Ireland Isle of Man enjoy the friendly company of a growing expat community.

Globally Connected

Italy Jersey Jordan Korea Kuwait Latvia Lebanon Libya Lithuania It just takes two to three hours flying time from most European cities to reach Malta International Airport (MIA), the island’s only airport. Regular flights are provided by Air Malta, Malta’s national airline, as well as other airlines such as Lufthansa, Emirates, Air France, Aerosvit, Alitalia, Austrian Airlines, Scandinavian Airlines, Ryanair, Easyjet and Spanair. Luxembourg Malaysia Montenegro Morocco Netherlands Norway Pakistan Poland Portugal Five-star Luxury

International hotel chains such as Hilton, Radisson, Corinthia and Intercontinental are present in Malta. Superior accommodation is also offered Qatar Romania San Marino Saudi Arabia Serbia Singapore Slovakia Slovenia South Africa at the Palace Hotel, the Phoenicia Hotel, the Westin Dragonara Resort or the five- star boutique hotel Xara Palace Relais & Chateaux. The main tourist centres are Sliema and St. Julian’s as well as Bugibba and Qawra.

Flavours of the Mediterranean United United Spain Sweden Switzerland Syria Tunisia Arab Kingdom USA Uruguay Emirates There are many restaurants in which to enjoy a pleasant Mediterranean evening: from smart city restaurants in Baroque palaces to family-run trattoria-style places or seafront fish restaurants, the choice is wide. Bacchus Restaurant in Mdina and Treaties signed but not in force: Belgium (amendment to treaty), Guernsey (treaty will enter into force on 10th March 2013), Israel, Luxembourg (amendment to treaty), Mexico, Norway (new Barracuda Restaurant in St. Julian’s are two of Malta’s best establishments. treaty to replace existing one), South Africa (amendment to treaty), Turkey.

Markets and Malls

Most international chains and brands have a presence in Malta. Exclusive boutiques also sell designer wear at relatively low prices. The main shopping districts are Sliema and Valletta, where one can also find shopping complexes and street markets. Shops are usually open from 9 am – 1 pm and 4 pm – 7 pm and most are closed on Sundays.

Best Climate in the World

Malta enjoys more than 300 days of sunshine during the year. The magazine ‘International Living’ has rated the country’s climate the best in the world. Summers are dry and warm and winters are mild with daytime temperatures usually above 12 degrees. Even in winter Malta enjoys an average of 5 to 6 hours of sunshine and more than 12 hours a day in summer. 40 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 41

Why Malta Living Heritage Value for Money 10 reasons why expats With 7,000 years of history and many remains visible to this day, Malta has been described The cost of living in Malta is one of the lowest in Europe, yet banking, taxation, insurance, enjoy living in Malta as an open-air museum. Megalithic temples, medieval towns and massive bastions have social security, utilities and communications services are sophisticated, professional and all been declared as UNESCO World Heritage Sites. They regularly provide the backdrop for reliable, often surpassing those offered in many European nations. Fabulous all-year round weather events listed in Malta’s packed cultural calendar such as concerts, plays or art exhibitions. with 300 days of sunshine First Class Healthcare and a crystal clear sea. Short Distances Malta has one of the best health services in the world. EU nationals resident in Malta are Short distances between Malta has a road network of 1,500 kilometres, however, it only takes 45 minutes to cross eligible to receive free medical treatment at public hospitals and clinics. The main general destinations save the island. The public transport system has recently been overhauled and is now operated hospital is Mater Dei Hospital in Msida, while many towns and villages have their own commuting time. by German-owned Arriva group. A new network of routes and a new fleet of modern buses medical clinics. Malta also has several private hospitals located around the island, such as provide an extensive service across Malta and Gozo. A train service does not exist in Malta. the renowned St. James Hospital in Sliema. Friendly and hospitable local population. Low Crime Location High Quality Education No communication problems Malta offers a stable, secure environment for families with young children. Malta provides an excellent standard of education. Children can be educated in one of with English and Maltese Crime is almost non-existent. Children play on the streets and there are still the private international schools such as St Michael’s School in Pembroke or enrolled in as official languages, while some areas where people leave their door unlocked at night. Foreigners find the local state, church or independent schools. Kindergarten facilities are also available. Italian is widely spoken, as it easy to integrate with the local community. The Maltese are a sociable Tertiary education is offered through the University of Malta and other institutes and well as German and French bunch and make every visitor feel welcome. private colleges. within the tourism sector.

English-Speaking Destination A Home in the Sun Low cost of living while all goods are easily available. English is one of Malta’s official languages, Maltese the other. English is There is a wide range of properties available to rent or purchase, from furnished apartments the main language of business while laws and regulations are published to farmhouses, villas with pools, and even palaces, all at competitive prices. A number of Family-friendly country in both languages. Many Maltese are also fluent in Italian and some even five-star developments have recently been built on the island, including Portomaso and with a low crime rate. speak another language, mainly German or French. Tigne Point, which offer luxury apartments surrounded by commercial, health, fitness and leisure facilities. Excellent social life for all Morning News and Evening Shows ages, with bars, clubs and restaurants to suit all tastes and Malta’s bilingual culture is also reflected in the media landscape and half the budgets and a thriving cultural newspapers are published in English. Foreign newspapers can be purchased scene with big name concerts, easily due to Malta’s orientation towards tourism. In addition to satellite TV, two weekly outdoor festivals and private cable-TV providers offer most international channels and favourite many theatres and cinemas. programmes. Good medical services with a recently built state-of-the- art government hospital and many private clinics.

Above UK-average schooling in English-speaking schools, and a respected university.

A wide variety of property is available in all price ranges. 42 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 43

Personal Financial Services Accounting and Auditing Baker Tilly Sant 44 As a sophisticated finance centre, Malta offers a wide range of services and insurance and Ernst & Young 45 investment products for the personal needs of executives and managers moving to Malta. PwC 48 The country’s banks operate a strong network of ATMs and branches across the islands. All major cards are accepted. Malta is also part of SEPA, the EU’s Single Euro Payments Area. KPMG 47

Perfect Spots for Sports Banking Bank of Valletta plc 44 Water sports are popular in Malta. The conditions for scuba diving and snorkelling are HSBC Commercial Banking 46 excellent, particularly as the sea temperature never drops below 13 degrees C (55 degrees F), Sparkasse Bank Malta plc 48 even in winter. Malta has one golf course, located at the Royal Malta Golf Club. Gyms and football or water polo clubs can be found all over the island. Boating excursions are offered Corporate Services by Hera Cruises and Malta Yacht Charters Company. International Management Services Ltd 47 Buzzing Entertainment Hub Government Agency The sea, cafés, restaurants, clubs, cinemas, theatres, sports clubs or FinanceMalta 46 gyms are almost always within walking distance of office complexes or WHO’S Malta Enterprise 47 residential areas. There are a wide range of festivals celebrated in Malta, the biggest one being the annual Carnival. In addition, every town or HR & Recruitment village in Malta celebrates the feast of its patron saint with a big outdoor WHO Castille Resources 45 festival. MALTA Legal Services Visa-free Travel in the Schengen Zone BUSINESS profiles Fenech & Fenech Advocates 45 Malta’s immigration laws are in line with EU policies. The country is part of Ganado Advocates 46 the Schengen zone. EU nationals are free to work and live in Malta. Non-EU citizens can find details about visa-exempt countries and visa application Real Estate procedures on the website of the Ministry of Justice and Home Affairs at Belair Real Estate 44 www.mjha.gov.mt. Third-country nationals also require work permits to work in Malta. Telecom & Internet Vodafone Malta Limited 48 Powering the Finance Centre

Energy and water supplies are stable. The energy and water requirements are catered Trust and Foundations Management for by Enemalta and the Water Services Corporation respectively. Oil is so far the only Alliance Trust Company Limited 44 type of energy used for electricity generation, while recent years have also seen a move Amicorp Malta Limited 44 towards alternative sources. The electricity is 240 volts AC, 50 Hz, and plug types are the Bentley Trust (Malta) Limited 45 three-pronged British model. EMCS International 45 Griffiths & Associates 46 Integritas-Trustees 47 Premier Fiduciary & Trusts Ltd 47 STM Malta Trust and Company Management Limited 48 Trident Trust 48 44 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 45

ALLIANCE TRUST COMPANY LIMITED Bentley Trust (Malta) Limited Alliance Trust Company Limited (ATCL) offers trust and fiduciary services to Bentley Trust (Malta) Limited provides Trust and Company formation and a strong and diverse international client-base. Licensed by the Malta Financial administration on an international, multi-jurisdictional basis. We specialise Services Authority, it accepts fiduciary office, including acting as trustee and in meeting the varied requirements of wealthy individuals and their families, administrator for public and private foundations and various management support entrepreneurs, corporate executive and charities. We can tailor solutions to roles in corporate structures. Its professionals’ approach is relationship-driven, address a broad range of client objectives. From our base in Malta and together with a long term focus. ATCL also specialises in company formation, administration with your chosen professional advisers, Bentley Trust (Malta) offers a highly and management support services. It is the founding member of TAP Knowledge, personal, discrete service providing flexible, efficient administration of all client an alliance of independent centres of professional expertise, including structure assets on a global basis. Bentley Trust (Malta) is regulated by the Malta Financial Tower Business Centre, Level 1 Suite No 5, Level 7, Portomaso Business Tower, formation and management, legal, accounting and ICT support, facilities Services Authority. Tower Street, Swatar, Birkirkara BKR 4013 - Malta St. Julian’s STJ 4011 - Malta management, corporate strategy and project finance consulting, and property Christian Farrugia T: (+356) 2549 6000 • F: (+356) 2549 6444 Malcolm Becker T: (+356) 2137 8828 • F: (+356) 2137 8383 location and personal re-location services. director E: [email protected] CEO E: [email protected] W: www.atcl.com.mt W: www.bentleyreid.com Contact: Dr. Christian Farrugia - Director Contact: Mr. Malcolm Becker - CEO

Amicorp Malta Limited Castille RESOURCES Amicorp Malta Limited is part of Amicorp Group with 41 offices in 26 countries. Castille is widely recognised as the leading financial recruitment firm in Malta, We assist international clients with setting up and administration of different boasting an unparalleled track record in the areas of banking, insurance, type of entities such as but not limited to companies, trusts and foundations. In assurance, fund management, fund administration, FOREX and corporate addition, we provide international tax structuring, accounting services and payroll services. Castille Resources delivers best in class talent through our Permanent management. Amicorp Malta is also licenced by the MFSA to act as a trustee and Placement, Executive Search and Interim services. to carry out other fiduciary activities.

Level 1, Blue Harbour Business Centre, 32-33, Old Bakery Street, Valletta - Malta Ta’ Xbiex Yacht Marina, Ta’ Xbiex XBX 1027 - Malta T: (+356) 2123 4102 • F: (+356) 2123 4103 Rudolph Psaila T: (+356) 2258 4700 • F: (+356) 2258 4701 Matthew Camilleri CA E: [email protected] managing director E: [email protected] Managing Director W: www.castilleresources.com W: www.amicorp.com Contact: Mr. Matthew Camilleri CA Contact: Mr. Rudolph Psaila - Managing Director - Managing Director

Baker Tilly Sant EMCS International Baker Tilly Sant is a firm of accountants, auditors, taxation and business advisors EMCS International forms part of a professional services group offering various providing services for businesses operating in all spheres of the economy, both services to an international client base. We are licensed by the Malta Financial locally and overseas. Baker Tilly Sant is an independent member of Baker Tilly Services Authority to carry out Trustee and Fiduciary Services. The extensive International, a worldwide association of leading accountancy practices operating mixed competences of our directors and staff ensure that we are professionally in 131 countries around the world, ensuring that our clients are able to draw on equipped to provide advice on estate planning, tax and the set-up of a trust or professional advice on any aspect of their international affairs. The philosophy foundation in Malta and to act as trustee/administrator. Services provided include of the firm is based on the concept of providing creative forward thinking and the preparation of the trust deed and other necessary statutory documentation, Level 5, Rosa Marina Building planning, and being able to offer an independent and innovative service in support administration of the trust/foundation, accounting and maintenance of asset 216, Marina Seafront, Pieta PTA 9041 - Malta Level 2, Regional Business Centre, of clients’ business goals. ledgers, reporting and filing with the relevant authorities, ongoing compliance and T: (+356) 2010 9500 • F: (+356) 2010 9501 University Heights, Msida - Malta liaising with local authorities. Donald Sant E: [email protected] Geraldine Schembri T: (+356) 2777 2540 • F: (+356) 2131 8677 managing partner W: www.bakertillysant.com MANAGING DIRECTOR W: www.emcsinternational.com Contact: Mr. Donald Sant - Managing Contact: Ms. Geraldine Schembri Partner and Head of Audit - Managing Director

Bank of Valletta pLC Ernst & Young Bank of Valletta is the leading financial services provider in Malta, offering investment Ernst & Young is a global leader in assurance, tax, transactions and advisory banking, private banking, fund management, bancassurance, stockbroking and services. Our 167,000 people are united by our shared values, which inspire our trustee services. The Bank serves its clients via an extensive national network of people worldwide and guide them to do the right thing, and our commitment to branches, with an International Corporate Centre and Business Centres catering quality, which is embedded in who we are and everything we do. Ernst & Young for its business clients, and a Wealth Management department and Investment is committed to doing its part in building a better working world for our people, Centres offering tailor-made services to those wishing to invest. Representative for our clients and for our communities. Offices in Milan, Brussels, Tripoli and Melbourne liaise with clients who have BOV Centre, Cannon Road, Regional Business Centre, interests in these countries. The Bank’s services are available on a 24/7 basis via Sta Venera SVR 9030 - Malta Achille Ferris Street, Msida MSD 1751 - Malta internet, telephone and mobile. T: (+356) 2131 2020 • F: (+356) 2275 3730 T: (+356) 2134 2134 • F: (+356) 2347 1600 Charles Borg E: [email protected] Ronald Attard E: [email protected] Chief Executive Officer W: www.bov.com country managing partner W: www.ey.com Contact: Mr. Romeo Cutajar – Chief Officer Contact: Mr. Ronald Attard - Financial Markets & Investments Country Managing Partner

BELAIR REAL ESTATE Fenech & Fenech Advocates Belair is a long-established company and well-known specialist in the real estate Founded in 1891, Fenech & Fenech Advocates, one of the largest full service field. Over the years, the directors have built long-term relationships with owners law firms in Malta, has a strong local and international practice covering a wide and clients alike; respected and trusted for their ability to create value for clients range of practice areas, including the full spectrum of corporate and commercial because of their integrity and hard work. Belair offers a wide portfolio of residential law activities, financial services, tax, immigration law, company law, trusts and and commercial properties both for sale or rent. Renowned for their key role in foundations, marine law, yachting, aviation law, ship registration, project finance, assisting companies and individuals relocating to Malta, Belair can also assist M&As, intellectual property law, iGaming (inclu. licensing), ICT law, amongst clients on tax and legal issues as well as facilitating their move and integration others. Drawing on its inhouse corporate services group, the firm also offers its within the Maltese society. clients a comprehensive solution with respect to the setting up and administration of companies, trusts and foundations. 48, Msida Road, Gzira GZR1400 - Malta 198 Old Bakery Street, Valletta VLT 1455 - Malta Ian Casolani T: (+356) 2011 8000 • F: (+356) 2131 9404 Rosanne Bonnici T: (+356) 2124 1232 • F: (+356) 2599 0645 Managing Director E: [email protected] partner E: [email protected] W: www.belair-malta.com W: www.fenechlaw.com Contact: Mr. Ian Casolani - Managing Director Contact: Dr. Rosanne Bonnici - Partner 46 FinanceMalta investor guide series trusts & foundations FinanceMalta investor guide series trusts & foundations 47

financemalta Integritas Trustees Ltd FinanceMalta, a non-profit public private initiative, was formally set up as an The Integritas Group is a multidisciplinary group of companies composed autonomous Foundation on the 21st May 2007 with the scope of promoting Malta of Integritas Trustees Ltd, Integritas Corporate Services Ltd and Integritas as a financial services centre, both within, as well as outside, its shores. It brings Consulting Ltd. Driven by the values of integrity and quality, we provide together, and harnesses, the resources of the industry and government to ensure Effective I Secure I Skilled Trusteeship, Fiduciary, Corporate and Residence services on the strength of that Malta maintains a modern and effective legal, regulatory and fiscal framework more than 35 years of team experience in Swiss Private Banking, EU Trust and in which the financial services sector can continue to grow and prosper. The Corporate Service sectors. This unique composition and expertise enables founding associations are: the Malta Funds Industry Association, the College of Integritas to offer Family offices, Professionals, Corporations and Individual Stockbrokers, the Malta Bankers’ Association, the Malta Insurance Management clients a tailor-made approach and implementation of world-class solutions. Garrison Chapel, Castille Place, Valletta VLT1063 - Malta Association, and the Institute of Financial Services Practitioners. T: (+356) 2122 4525 • F: (+356) 2144 9212 189/2 The Strand, Gzira GZR 1024 - Malta Bernice Buttigieg E: [email protected] Frederic Villa T: (+356) 2385 0611 • F: (+356) 2133 4405 head of administration W: www.financemalta.org managing director E: [email protected] Contact: Dr. Bernice Buttigieg - W: www.integritas-trustees.com FinanceMalta Follow us on: FinanceMalta @FinanceMalta FinanceMaltaYT Head of Administration Contact: Mr. Frederic Villa - Managing Director

financemalta International Management Services Ltd FinanceMalta, a non-profit public private initiative, was formally set up as an Established in 1985, International Management Services (IMS) provides financial autonomous Foundation on the 21st May 2007 with the scope of promoting Malta services in general, including the creation of commercial vehicles and structures. It as a financial services centre, both within, as well as outside, its shores. It brings is now established with a solid reputation in the provision of extensive centralised together, and harnesses, the resources of the industry and government to ensure Effective I Secure I Skilled back office operations for its clients. Through its multi-disciplinary team IMS is that Malta maintains a modern and effective legal, regulatory and fiscal framework experienced in handling the accounting, tax and administrative functions allowing in which the financial services sector can continue to grow and prosper. The clients the freedom to concentrate their focus on their core business operations. founding associations are: the Malta Funds Industry Association, the College of IMS has an international client base ranging from single high-net worth individuals Stockbrokers, the Malta Bankers’ Association, the Malta Insurance Management to quoted companies. Clients are involved in the trading, e-gaming, investment Garrison Chapel, Castille Place, Valletta VLT1063 - Malta Regent House, Office 21, Association, and the Institute of Financial Services Practitioners. fund, leasing, aviation and maritime sectors amongst others. T: (+356) 2122 4525 • F: (+356) 2144 9212 Bisazza Street, Sliema SLM 1640 - Malta Bruno L’ecuyer E: [email protected] Gordon Mifsud T: (+356) 2134 1219 • F: (+356) 2134 0665 Head of Business W: www.financemalta.org managing director E: [email protected] Development Contact: Mr. Bruno L’ecuyer - W: www.imscons.com FinanceMalta Follow us on: FinanceMalta @FinanceMalta FinanceMaltaYT Head of Business Development Contact: Mr. Gordon Mifsud - Managing Director

Ganado Advocates KPMG Ganado Advocates, founded in Valletta, Malta, traces its roots to the early 1900s. KPMG in Malta is one of the leading providers of audit, tax and advisory services. From its earliest days, Ganado Advocates has been one of the protagonists in We have 22 principals (including 14 partners) and a staff complement of 260. With local legal practice, contributing to Malta’s internationally recognised reputation a balanced mix of international and local clients, our goal is to turn knowledge as a centre for financial services and maritime law. Ganado Advocates is currently into value for the benefit of our clients, our people, and the capital markets. We Malta’s largest legal firm and offers a comprehensive range of legal services and continue to build on past successes thanks to a clear vision, rigorously maintained solutions for domestic and international clients. The firm enjoys an excellent values and, above all, the dedication and expertise of our people. In May 2012, reputation at national and international level and has relationships with many major KPMG was recognised by International Tax Review as Malta’s Best Tax Firm of firms in Europe, the United States and other continents. Dr. Cremona currently the year. heads the Trusts Department of the firm. 171 Old Bakery Street, Valletta - Malta Portico Building, Marina Street, Pieta’ PTA 9044 - Malta Anthony Cremona T: (+356) 2123 5406 • F: (+356) 2122 5908 Tonio Zarb T: (+356) 2563 1000 • F: (+356) 2566 1000 partner E: [email protected] senior partner E: [email protected] W: www.ganadoadvocates.com W: www.kpmg.com.mt Contact: Dr. Anthony Cremona - Partner Contact: Mr. Tonio Zarb - Senior Partner

Griffiths & Associates Malta Enterprise Established in 1982 and located in Swieqi, our firm of Certified Public Accountants Malta Enterprise (ME) is the national economic development agency focused offers a one-stop shop for assisting businesses in carrying on activities in, from on promoting inward investment, internationalising business and supporting or through Malta. The firm’s activities include company formations, back-office enterprise. Its role is to act as a point of contact for all enterprise and to services and international tax structuring, especially within the context of Malta’s provide cohesion to government policies and efforts relating to enterprise. extensive treaty network and advantageous tax regime. Being members of ME provides a comprehensive incentives package to local and international PrimeGlobal, an international association of accountants and advisers, adds value investors setting up operations in Malta, including pre-investment support, to the servicing of clients’ needs within an international perspective. start-up assistance, and a range of post investment services. ME also offers trade promotion services aimed at assisting local companies access Ivy Mansions, Triq il-Qasam, Swieqi SWQ 3025 - Malta Gwardamangia Hill, Pieta MEC 0001 - Malta new markets, set up partnerships with foreign businesses and introducing T: (+356) 2138 3633 • F: (+356) 2138 3632 T: (+356) 2542 0000 • F: (+356) 2542 3401 foreign companies to suitable manufacturers, service providers, suppliers and Peter J. Griffiths E: [email protected] Sue Vella E: [email protected] potential strategic partners in Malta. Managing & tax director W: www.griffithsassoc.com Chief executive Officer W: www.maltaenterprise.com Contact: Mr. Peter J. Griffiths – Contact: Mr. Kevin Chircop - Global Leader Managing & Tax Director Investment, Trade Promotion & Internationalisation

HSBC Commercial Banking Premier Fiduciary & Trusts Ltd HSBC Commercial Banking is a leading provider of business financial services. Premier Fiduciary & Trusts Ltd is a Maltese company, licensed by the Malta A purpose-built Business Banking Centre in Qormi brings together under one Financial Services Authority (MFSA). At Premier we strive to set the standard roof a strong team of specialised relationship managers and business specialists, in nominee, trusts and foundation services. Thanks to our focus on quality, we all trained to service businesses thus making it a service centre of excellence. aim to exceed our clients’ expectations. Our service is always built around each A wide range of specifically designed products and services are available to client’s personal needs and priorities. Whatever we do for you, you can be assured meet the diverse needs of the business community including Internet Banking, that we always act with uncompromising integrity, quality, personal service and Trade, Invoice Finance, Payments and Cash Management as well as International attention to detail. HSBC Bank Malta p.l.c. Business Banking Centre, Banking to meet the needs of International businesses. We are an international Mill Street, Qormi QRM 3101 – Malta 43A/1 St. Paul’s Buildings, West Street, bank with local expertise supporting all business segments in Malta. T: (+356) 2380 4832 • F: (+356) 2380 4532 Valletta VLT 1532 - Malta Michel Cordina E: [email protected] George Hyzler T: (+356) 2011 9797 • F: (+356) 2010 2970 head of commercial banking W: www.hsbc.com.mt Executive Chairman E: [email protected] Contact: Mr. Michel Cordina - W: www.premieradvisorymalta.com Head of Commercial Banking Contact: Dr. George Hyzler - Executive Chairman 48 FinanceMalta investor guide series trusts & foundations

PwC PwC is the leading and largest professional services organisation in Malta providing industry-focused assurance, tax and advisory services. The Malta firm forms part of the PwC network where more than 180,500 people in 158 countries share their thinking, experience and solutions to develop fresh perspectives and practical advice. PwC Malta provides tailored advice on the suitability and implications of the setting up of trusts and foundations through its dedicated multi-disciplinary professional team. The Malta firm is also active within the PwC network in promoting the characteristics and possible uses of trusts and foundations set up under Maltese law. 78, Mill Street, Qormi QRM 3101 - Malta Neville Gatt T: (+356) 2124 7000 • F: (+356) 2124 4768 PARTNER E: [email protected] W: www.pwc.com Contact: Mr. Neville Gatt - Partner

SPARKASSE BANK MALTA PLC The Bank forms part of the Austrian Savings Banks and the Erste Group Bank AG network. From Malta the Bank provides Private Banking, Wealth Management and Fund Custody solutions. Fund custody is a core business for the bank and its experience in the field allows for flexible and practical workable solutions. what The Bank provides custody services to UCITS, AIF and PIFs offering a personal, tailored and seamless banking, execution and settlement solution. a great combinationwhat 101 Townsquare, Ix-Xatt ta’Qui-si-Sana Sliema SLM 3112 - Malta Paul A. Mifsud T: (+356) 2133 5705 • F: (+356) 2133 5710 a great combination Managing Director E: [email protected] W: www.sparkasse-bank-malta.com Contact: Mr. Paul A. Mifsud - Managing Director your firm benefiting from membership to FinanceMalta STM Malta Trust and Company Management Limited Forming part of STM Group plc (a UK AIM quoted company) and through our your firm benefiting from membership to FinanceMalta network of offices in Gibraltar, Jersey, Spain and Cyprus, STM Malta Trust and Membership advantages include: Company Management Limited provides our growing international client base with a range of services such as acting as Trustees and Administrators of Trusts, MembershipCompany listing advantages on our website include: • Administration of Foundations and all aspects of Corporate Services, including re-domiciliation. Our dedicated and professional staff provides a powerful ParticipateCompany in webinarslisting on our& podcasts website • combination of innovation and experience and understands the importance of addressing each client’s specific requirements. STM Malta Trust and Company Opportunities to showcase your firm • Tagliaferro Business Centre, Participate in webinars & podcasts • Management Limited is regulated by the Malta Financial Services Authority. Level 2, Gaiety Lane, Sliema SLM 1549 - Malta Business networking & educational events • Helen Murdoch T: (+356) 2133 3210 • F: (+356) 2133 3220 Opportunities to showcase your firm • director E: [email protected] Complimentary passes to some of Europe’s most important events • W: www.stmmalta.com Business networking & educational events • Contact: Ms. Helen Murdoch - Director OpportunityComplimentary to take passes part into road some shows, of Europe’s press mostbriefings important & workshops events • Trident Trust OpportunityAccess to market to take intelligence part in road reports shows, & brandedpress briefings marketing & workshopsmaterials • Through 34 offices in 24 jurisdictions, Trident Trust has for more than 30 years been a leading provider of corporate and trust services to the financial services Access to market intelligence reports & branded marketing materials • sector worldwide working with intermediaries, financial institutions and large international organisations. Trident Fund Services, a dedicated fund services division of Trident Trust, provides cost-effective fund administration services with assets under administration exceeding $30 billion. Managers select us for our experienced personnel, robust fund administration systems, global reach, The Cornerstone Complex, Level 3 Suite 3, more information on: reliability and responsiveness. 16th September Square, Mosta MST 1180 - Malta T: (+356) 2143 4525 • F: (+356) 2143 4595 more information on: Nissim Ohayon E: [email protected] www.financemalta.org Managing Director W: www.tridenttrust.com www.tridentfundservices.com www.financemalta.org Contact: Mr. Nissim Ohayon - Managing Director

Vodafone Malta Limited Vodafone Malta is proud to be the local provider of choice for high-speed bandwidth, co-location services and international private leased lines. With its very own submarine cable and a high capacity link on another 3rd party subsea cable, Vodafone provides a resilient connection to mainland Europe where multiple Scan QR Code international carriers route all traffic to anywhere around the world. Vodafone Effective | Secure | Skilled Malta also operates a state-of-the-art carrier grade co-location facility serving with your smartphone Scan QR Code an ever growing number of mission-critical businesses operating out of Malta. Vodafone guarantees 24x7 technical support, multiple carrier connectivity and an with your smartphone Effective | Secure | Skilled SkyParks Business Centre outstanding level of service that is synonymous with the Vodafone brand. Malta International Airport, Luqa LQA 4000 - Malta Find us on: FinanceMalta @FinanceMalta FinanceMaltaYT FinanceMalta Balesh Sharma E: [email protected] Chief Executive Officer W: www.vodafone.com.mt Find us on: FinanceMalta @FinanceMalta FinanceMaltaYT FinanceMalta Contact: Mr. Ivan Zammit - Enterprise Services Manager FinanceMalta - Garrison Chapel, Castille Place, Valletta VLT1063 - Malta | [email protected] | tel. +356 2122 4525 | fax. +356 2144 9212

FinanceMalta - GarrisonFinanceMalta Chapel, Castille is the Place, public-private Valletta VLT1063 initiative -set Malta up to | [email protected] Malta’s International | tel. Financial +356 2122 Centre 4525 | fax. +356 2144 9212

FinanceMalta is the public-private initiative set up to promote Malta’s International Financial Centre

35955 - Member Recruitment A4.indd 1 21/01/2013 15:16

35955 - Member Recruitment A4.indd 1 21/01/2013 15:16 Malta The culture of getting things done

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