Best Trusts Lawyers in Swieqi

About Trusts Law in Swieqi, Malta

Trusts are legal arrangements where a person known as the settlor transfers assets to a trustee to hold and manage for the benefit of beneficiaries or for a lawful purpose. In Swieqi and across Malta, trusts are recognised and regulated under Maltese law. They are commonly used for wealth structuring, family succession planning, asset protection, charitable giving, investment holding, and commercial transactions.

Malta blends civil law and common law features. Although Malta is historically a civil law jurisdiction, it has a modern trusts regime that is compatible with international practice. Maltese courts recognise trusts created under Maltese law and may also recognise foreign trusts, reflecting Malta’s commitment to international standards.

For residents of Swieqi, the rules that apply are national. Local practitioners in and around Swieqi regularly assist with establishing, administering, and restructuring trusts in compliance with Maltese regulation and anti money laundering requirements.

Why You May Need a Lawyer

Trusts are powerful but technical. A lawyer can help you choose, create, and manage the right structure while reducing legal, tax, and regulatory risk. Common reasons to seek legal help include creating a family or discretionary trust to provide for children, vulnerable relatives, or multigenerational wealth planning. Clients also seek advice when contributing business assets, shares, intellectual property, or real estate to a trust as part of a corporate reorganisation or a succession plan.

Lawyers assist when selecting and appointing a licensed trustee, drafting a clear trust deed, and incorporating letters of wishes. They advise on the roles of protectors and advisors, and draft powers and restrictions that match your objectives. If you already have a trust, a lawyer can review compliance with Maltese law, update documentation, and help adapt to changes in family circumstances or legislation.

Disputes can arise over trustee decisions, beneficiary entitlements, or alleged breaches of duty. Legal representation is important to negotiate solutions, mediate, or commence court proceedings where necessary. Cross border elements are common. A Maltese lawyer can coordinate with foreign counsel on recognition, governing law, and enforcement issues.

Tax and reporting considerations also require careful planning. A lawyer, often working with tax advisors, can explain how Maltese rules apply to your situation, including anti money laundering obligations, reporting of beneficial ownership, and the interaction between Malta and other jurisdictions that affect you or your beneficiaries.

Local Laws Overview

The principal statute is the Trusts and Trustees Act, Chapter 331 of the Laws of Malta. It sets out how trusts are created, administered, and terminated, and it imposes licensing and conduct requirements on professional trustees and fiduciaries. The Malta Financial Services Authority regulates and supervises trustees, applies fitness and propriety standards, and issues rules on governance, capital, insurance, and compliance. Trustees must follow anti money laundering and counter terrorist financing requirements issued in Malta.

Creation of a trust usually occurs by a written trust deed or a declaration of trust. The deed sets the trust’s purposes, identifies the trustee and beneficiaries or a class of beneficiaries, describes trust property, and sets powers and duties. The governing law can be Maltese law or, in appropriate cases, a foreign law recognised in Malta. Malta recognises a range of trust types, including discretionary, fixed interest, charitable, protective, unit trusts, and certain purpose trusts permitted by law.

Trustee duties include loyalty, prudence, segregation of assets, keeping proper records, acting in accordance with the deed and the law, and accounting to beneficiaries. Trust property is ring fenced and is not available to the trustee’s personal creditors. The role of a protector is recognised, where the deed grants powers such as consenting to or vetoing key trustee decisions. Letters of wishes may guide trustees but are generally not binding unless made so by the deed.

Licensing and regulation apply to those acting as trustees by way of business. Private and occasional arrangements may fall within limited exemptions in specific circumstances, but regulation remains strict. Professional trustees in Malta must be authorised and are subject to continuing supervision. Clients should always verify that their chosen trustee holds the appropriate authorisation.

Registration and transparency obligations exist. Malta does not operate a fully public register of trusts, but trustees must maintain internal registers of beneficial owners and provide information to competent authorities. There is a beneficial ownership register for trusts maintained in Malta with access controlled by law. Trustees must perform customer due diligence on settlors, beneficiaries, and other controlling persons, and they must report and keep records in line with anti money laundering law.

Duration rules apply to private trusts. In most cases a private Maltese trust cannot last indefinitely and is subject to a statutory maximum duration that is typically up to 125 years, unless it is a charitable trust or another structure permitted to have a longer duration by law. The trust deed should specify the trust period and the events that terminate the trust.

Tax treatment depends on several factors, including the residence and domicile of settlors and beneficiaries, the source of income and gains, and elections available under Maltese tax law. Malta provides for flexible regimes that can result in taxation at the level of the trustee or transparency in favour of beneficiaries in specific cases. Cross border tax outcomes vary significantly, so tailored tax advice is essential before settling assets or making distributions.

Trusts may hold a wide range of assets, including cash, securities, intellectual property, business interests, and real estate. Ownership of Maltese immovable property by a trust may be subject to additional requirements and general property rules, including acquisition approvals for non residents. Finance and security trusts are commonly used in commercial transactions for holding collateral and managing investors’ rights.

Disputes and applications related to trusts are generally brought before the Maltese civil courts, with the possibility of arbitration or mediation if the deed provides. The courts can remove or replace trustees, give directions, approve variations in limited circumstances, and enforce beneficiaries’ rights. Regulatory issues involving licensed trustees fall within the oversight of the financial services regulator.

Frequently Asked Questions

What is a trust under Maltese law

A trust is a legal relationship where a settlor transfers assets to a trustee to manage for beneficiaries or a lawful purpose. The trustee holds legal title, but must manage the assets in line with the trust deed and the law for the benefit of others.

Can foreigners set up a trust in Malta

Yes. Non residents commonly establish Maltese law trusts or use Maltese trustees for international structures. Eligibility, tax, and compliance requirements must be assessed in each case, especially if assets or beneficiaries are in other countries.

Who can act as a trustee in Malta

Anyone acting as a trustee by way of business must be authorised and supervised by the financial services regulator. Limited private scenarios may be exempt, but most clients use licensed professional trustees to ensure compliance, governance, and practical administration.

Do trusts need to be registered in Malta

There is no fully public register of trusts. However, trustees must keep detailed internal records and fulfill beneficial ownership reporting obligations to the competent authorities in Malta. Access to beneficial ownership information is regulated and not open to the general public.

How long can a Maltese trust last

Most private trusts have a maximum duration that is typically up to 125 years, unless an exception applies, such as charitable trusts or certain investment structures. The deed should state the trust period and wind up provisions.

Can a Maltese trust own real estate in Malta

Yes, subject to Maltese property law and any approvals that may apply, particularly where non residents are involved. The trust deed and trustee licensing status should be checked, and property and tax advice should be obtained before transferring immovable property into a trust.

How are Maltese trusts taxed

Tax treatment varies. In some cases a trust may be tax transparent so that income is taxed in the hands of beneficiaries. In other cases the trustee may be subject to tax in Malta with distributions treated accordingly. The residence and domicile of parties and the source of income are important. Specialist tax advice is essential before establishing or funding a trust.

What is a protector and do I need one

A protector is a person appointed by the deed to oversee the trustee and to consent to or veto certain actions. Protectors can add comfort in family trusts or complex structures. Whether you need one depends on your governance preferences and the trustee’s powers.

Can I change the trustee or the terms of the trust

Many deeds allow for the removal and appointment of trustees. Variation of terms may be possible if the deed provides powers or if the court approves in limited circumstances. Any change must respect beneficiaries’ rights, the law, and tax consequences.

What records and reporting are required

Trustees must keep accurate accounts, asset registers, and beneficial ownership records. They must perform customer due diligence and comply with anti money laundering rules. Beneficiaries and settlors may have personal reporting duties in their home countries, so coordinated advice is advisable.

Additional Resources

Trusts and Trustees Act, Chapter 331 of the Laws of Malta. The official Laws of Malta portal provides access to legislation and subsidiary rules.

Malta Financial Services Authority. The national regulator for trustees and fiduciaries, including public registers of licensed entities and regulatory guidance.

Financial Intelligence Analysis Unit. Guidance on anti money laundering and counter terrorist financing obligations applicable to trustees and related professionals.

Commissioner for Revenue Malta. Information on direct and indirect tax rules that may affect trusts, trustees, beneficiaries, and property transfers.

Malta Business Registry. Administration of registers related to entities and beneficial ownership reporting obligations where applicable.

Malta Chamber of Advocates. Professional body for lawyers in Malta with information on engaging legal counsel.

Notaries of Malta. Information on notarial services for deeds, property transfers, and certifications frequently used in trust transactions.

Court Services Agency Malta. Details on civil court processes relevant to trust disputes and applications.

Next Steps

Clarify your objectives. Write down what you want the trust to achieve, who should benefit, what assets you plan to include, and the time horizon. Note any cross border elements, such as beneficiaries who live abroad.

Gather information. Compile asset schedules, property details, company share registers, intellectual property certificates, identification documents, and any existing estate plans or shareholder agreements. Accurate information speeds up the process and reduces risk.

Obtain initial legal advice. Speak with a Maltese lawyer experienced in trusts. Ask about suitable trust types, whether a protector is advisable, governance options, and expected timelines and costs. Discuss tax considerations and reporting in Malta and other affected countries.

Select a trustee. Verify authorisation status with the financial services regulator, review experience and service levels, and confirm fees, insurance, and compliance procedures. Ensure the trustee can administer the specific assets you intend to settle.

Draft and review documents. Your lawyer will prepare the trust deed and any related instruments, such as a letter of wishes, appointment of protector, asset transfer documents, security trust documentation, or corporate resolutions. Review carefully to ensure the provisions match your goals.

Complete transfers and onboarding. Execute deeds of settlement or declarations of trust, transfer title to the trustee, and complete due diligence and beneficial ownership reporting. Update banks, registrars, and counterparties to reflect the trustee as the legal owner where required.

Maintain compliance and governance. Schedule periodic reviews with your lawyer and trustee. Update the letter of wishes as family or business circumstances change. Monitor distributions, investments, accounts, and regulatory filings to keep the structure fit for purpose.

If a dispute or change arises, seek advice early. Early engagement often resolves issues efficiently, whether through trustee directions, variations within the deed’s powers, mediation, or court applications where necessary.

This guide is for general information. For advice tailored to your situation, consult a Maltese lawyer experienced in trusts and private client matters in or near Swieqi.