Trusts & Foundations 125
Trusts & Foundations
A Foundation of
Trust
INSIGHT
Watchful Eye A watchtower at Senglea overlooking the Grand Harbour of Valletta. The tower has various symbols sculpted on such as an eye, an ear and the crane bird, symbolising guardianship and protection of the Maltese shores.
A
strong legal framework, combined with competitive set-up and management costs, has made Malta one of the ‘go-to’ names for those in search of wealth management solutions. The country has been a prominent player in administering private wealth structures for over 20 years. While trusts remain at the heart of the island’s service offering, they are now complemented by foundations, making Malta one of the few places in the EU where both trusts and foundations can be established. This ‘marketable advantage’ has attracted more than 130 service providers, including large banks, independently owned trust companies and smaller niche providers to the Mediterranean island. Malta is now in the process of introducing new, more efficient laws to make sure that the sector is primed and ready to sustain the growth the island has enjoyed for many years. An Enduring Legacy
130+
Fiduciary service providers operate in Malta.
Trusts were originally developed in England in the 12th century when landowners temporarily transferred their estates to another person while they were away fighting in the Crusades. After centuries of cultivation, this idea was officially introduced into Maltese legislation in 1989 as a ‘ring-fenced’ vehicle, only allowing non-residents to set up such structures. However, after ratifying the Hague Convention in 1994 and becoming