Trusts in Malta are regulated by the Trusts & Trustee Act, 2004.

In Malta the taxation of trusts is a comprehensive issue particularly due to the fact that the ‘trust’ is not an entity but a relationship. The tax treatment is dependent on a number of factors including the nature of the trust income and the residency of the beneficiar-ies in question.

As a general rule, the Malta Income Tax Act specifies that where at least one of the trustees of a trust is a person resident in Malta, tax shall be payable on any income attributable to a trust. Malta tax legislation de-fines “income attributable to a trust” as the

The advantage of settling a trust in Malta include:

• favourable taxation in certain circumstances,
• confidentiality,
• control of assets,