Private foundation in Malta

Updated 5 October 2026

A family foundation in an EU country. We select the administrator and board, prepare the founding deed, register the foundation and choose the tax model first.

A Maltese private foundation is a legal person under the Second Schedule to the Civil Code of Malta. The law distinguishes a private foundation set up for the benefit of particular persons, such as a family (article 33), from a purpose foundation serving a specific purpose (article 32). Foundations are registered through the Foundations and Associations Unit of the Malta Business Registry, which receives the application and forwards the founding deed to the Registrar for Legal Persons.

Families choose a Maltese foundation when they need a legal person in an EU country for family wealth rather than an offshore structure. Below: how a foundation is created, who runs it, what is disclosed, how it is taxed and why registration is refused.

How a foundation is created

• Founding deed. A foundation is created by public deed before a notary or by will. The deed sets out the name, purpose, assets, the board and distribution rules.
• Registration application. The application form is filed with the original or an authenticated copy of the deed (for a foundation created by will, an authenticated extract), the written consents of the administrators and the registration fee, which depends on the value of the foundation's assets.
• Legal personality. Once registered, the foundation owns assets, opens accounts and signs contracts itself.

Who runs the foundation

A board of administrators runs the foundation, and its members give written consent at registration. Where a foundation is administered professionally, the administrator is supervised by the Malta Financial Services Authority. The founder can keep influence through rights set out in the deed and through a protector, but the assets legally pass to the foundation - otherwise it does not protect them.

Beneficial owners register

Maltese foundations disclose their beneficial owners: the founder, administrators, protector, beneficiaries and others with control. The information goes to the beneficial owners register for foundations under rules adopted in 2017 to implement EU anti-money laundering requirements. The register is not public but is available to the authorities and persons the law allows.

Taxes

A Maltese foundation chooses how it is taxed. Under the tax law it may irrevocably elect to be taxed under the rules for trusts or in the same manner as a company ordinarily resident and domiciled in Malta. The choice depends on where the beneficiaries live, what income the foundation earns and how often it distributes. A mistake cannot be undone, so we model the taxes before registration together with taxes in the family's countries of residence. If the foundation elects company treatment, the rules for taxing Maltese companies apply to it, including how distributions are treated.

How a foundation is set up

1. Reviewing the goal. We define the purpose, beneficiaries, founder's rights and family taxes, and choose between a private and a purpose foundation.
2. Administrator and board. We select a licensed administrator in Malta and the board members.
3. Due diligence. The administrator and bank check the founder, the source of funds and the origin of the assets.
4. Documents. We prepare the notarial deed, the administrators' consents and the application.
5. Registration and tax. We file with the Malta Business Registry, register the foundation for tax and file beneficial owner information.
6. Account and assets. We open the account and transfer the assets to the foundation.

Why foundations are refused

• the administrator or bank will not take on a client without a verified source of funds;
• the purpose is unlawful or unclear;
• the administrators' consents or the authenticated deed are missing from the application;
• the founder wants full control, turning the foundation into a nominal shell.

Foundation or trust in Malta

Malta also has its own trust law. A trust is more flexible and familiar in common law countries, while a foundation suits banks and families that need a legal person with a charter and a board. Compare with a Malta trust and a Liechtenstein private foundation.

What we do

We review the goal and family taxes, select the administrator and board, prepare the founding deed, file for registration, register the foundation for tax, file beneficial owner information and open the account. The cost depends on the assets and the deed; a manager will calculate it in the chat.

What we do

• Foundation registration and maintenance

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