Fiduciary Services in Malta: Trusts, Trustees and Wealth Structuring

Originally published in 2015 | Last updated: 30 October 2026

Malta is a country with an exceptional reputation. It is credible and stable, and the country’s has established itself as a well-regulated European jurisdiction for corporate, financial and private wealth services. Its legal framework for trusts and fiduciary arrangements provides individuals, families, entrepreneurs and business owners with a structured environment for wealth planning, succession planning and the administration of assets.

Fiduciary arrangements can be particularly relevant where assets, family members or business interests extend across more than one jurisdiction. However, establishing a trust or another fiduciary structure requires careful consideration of the individuals involved, the nature and location of the assets, succession objectives and applicable tax and reporting obligations.

What Are Fiduciary Services?

Fiduciary services generally involve a person or professional service provider being entrusted to act for, or on behalf of, another person while fulfilling specific legal and fiduciary obligations.

One of the most common examples is a trust. Read more about Trusts.

Under a trust arrangement, a settlor transfers assets to a trustee. The trustee holds and administers those assets in accordance with the terms of the trust and for the benefit of designated beneficiaries or for a permitted purpose.

Fiduciary and trustee services may include:

• establishing and administering trusts;
• acting as trustee;
• administering private foundations;
• holding and administering assets;
• implementing distributions to beneficiaries;
• supporting succession and estate-planning arrangements;
• maintaining appropriate trust and administrative records; and
• coordinating with legal, tax, investment and other professional advisers.

Fiduciary services should not be confused with private banking or investment management. While these services may complement each other within a broader wealth-planning strategy, they have distinct legal, regulatory and commercial functions.

How Are Trustees and Fiduciaries Regulated in Malta?

Malta has a dedicated legal and regulatory framework governing trusts, trustees and certain other fiduciary activities.

The principal legislation governing trusts and trustees is the Trusts and Trustees Act, Chapter 331 of the Laws of Malta.

Malta’s financial services sector is supervised by the Malta Financial Services Authority (MFSA), which has supervisory responsibilities covering trustees and other fiduciaries falling within the applicable regulatory framework.

This regulatory environment is an important consideration for individuals and families assessing Malta for trustee and fiduciary services.

Anyone considering engaging a Maltese trustee or fiduciary service provider should establish whether the provider holds the appropriate authorisation for the proposed service and, where applicable, verify its regulatory status with the Malta Financial Services Authority.

How Does a Malta Trust Work?

Understanding the main parties involved is important when considering the establishment of a trust in Malta.

Settlor

The settlor is the person who creates the trust and transfers assets into the trust arrangement.

Trustee

The trustee holds and administers the trust property in accordance with the trust instrument, applicable Maltese law and the trustee’s fiduciary obligations.

While a trustee generally holds legal title to trust property, the assets must be administered in accordance with the purpose and terms of the trust.

Beneficiaries

The beneficiaries are the individuals or persons for whose benefit the trust property is administered.

A trust instrument can establish how and under what circumstances distributions are made to beneficiaries, subject to applicable law.

Protector

Depending on the structure and terms of the trust, a protector may also be appointed and granted specific powers in relation to the administration of the trust.

The precise structure will depend on the objectives of the settlor, the assets concerned and the circumstances of the intended beneficiaries.

Why Consider Malta for Fiduciary Services?

Several characteristics of the Maltese legal and professional environment make Malta relevant when evaluating potential jurisdictions for trust and fiduciary arrangements.

Established Trust Legislation

Malta has an established statutory framework for trusts through the Trusts and Trustees Act.

This provides a recognised legal basis for creating and administering trusts and regulating persons performing relevant trustee and fiduciary activities.

Regulatory Oversight

Malta’s financial services industry operates within a regulated environment overseen by the MFSA. For clients entrusting a professional provider with assets or long-term family wealth structures, appropriate regulatory oversight, governance and compliance procedures are particularly important considerations.

Succession and Estate Planning

Trusts can form part of a broader succession and estate-planning strategy.

They may be particularly relevant where families have:

• assets located across different jurisdictions;
• family businesses;
• multiple generations of beneficiaries;
• minor beneficiaries;
• beneficiaries requiring longer-term support;
• complex family circumstances; or
• specific objectives concerning the future administration of family wealth.

Rather than relying solely on the transfer of assets following death, a properly planned trust can provide a framework for how specified assets are administered and distributed over time.

Structured Asset Administration

A trust can provide an organised framework under which assets are held and administered for specified beneficiaries.

The trustee’s responsibilities and the conditions governing distributions can be established through the trust instrument, subject to applicable law.

Trusts are sometimes discussed in the context of asset protection, but this needs to be approached carefully. Asset protection is not absolute, and the legal treatment of assets can depend on factors including the circumstances in which the trust was established, the timing and nature of asset transfers, applicable creditor rights and the laws of other relevant jurisdictions.

A trust should therefore not be established or promoted as a mechanism for defeating legitimate creditor claims.

Flexibility in Wealth and Succession Planning

Trust structures can provide a degree of flexibility when determining how assets should be administered and eventually distributed.

Depending on the circumstances and structure, a trust can establish provisions concerning:

• administration of trust assets;
• distributions to beneficiaries;
• the timing of distributions;
• powers and responsibilities of trustees;
• succession objectives;
• the treatment of different categories of beneficiaries; and
• conditions attached to particular distributions.

This flexibility can be particularly valuable for families seeking a long-term framework rather than an immediate transfer of assets.

Fiduciary Services and International Families

Malta’s fiduciary framework can also be relevant to internationally mobile individuals and families.

For example, an entrepreneur may have a business incorporated in one jurisdiction, personal investments in another, property elsewhere and family members resident across several countries.

In circumstances such as these, succession and wealth planning can involve several legal and tax systems.

Establishing a Malta trust does not remove these cross-border considerations. Instead, advisers should assess matters such as the residence and domicile of the parties, location of assets, applicable succession rules, reporting requirements and taxation in all relevant jurisdictions.

Professional advice is therefore particularly important when Malta fiduciary services form part of a cross-border wealth structure.

Malta Trusts and Taxation

Tax is naturally an important consideration when establishing any international wealth or succession-planning structure.

However, a Malta trust should not be assumed to provide an automatic tax advantage.

The tax treatment of a trust can depend on several factors, including:

• the residence and tax status of the parties involved;
• the type and location of the assets;
• the source and nature of income;
• the terms of the trust;
• distributions made to beneficiaries; and
• the laws of other jurisdictions connected with the structure.

Individuals considering establishing a trust should therefore obtain appropriate tax advice based on their specific circumstances before assets are transferred or a structure is implemented.

This is especially important for individuals with tax obligations or reporting responsibilities outside Malta.

Malta Trusts and Private Foundations

A trust is not necessarily the appropriate solution for every family, entrepreneur or asset-holding arrangement.

Malta also provides for private foundations, which may be considered in certain wealth, succession and asset-administration structures.

Although trusts and private foundations may both be used within longer-term planning arrangements, they differ in their legal nature, governance, ownership arrangements and administration.

The decision between a Malta trust and a private foundation should therefore be determined by the objectives and circumstances of the individuals concerned rather than assuming that one structure is inherently preferable.

Who May Consider Fiduciary Services in Malta?

Fiduciary and trustee services may be relevant to a broad range of clients, including:

• private individuals and families;
• internationally mobile individuals;
• entrepreneurs and business owners;
• families planning intergenerational succession;
• families holding assets across multiple jurisdictions;
• owners of family businesses considering succession;
• individuals seeking longer-term administration of assets;
• families with younger or vulnerable beneficiaries; and
• individuals considering philanthropic or purpose-driven structures.

The suitability of a Malta trust, private foundation or another arrangement should always be assessed according to the client’s individual circumstances.

For entrepreneurs whose planning also involves establishing or restructuring a business presence in Malta, fiduciary planning can potentially form part of a wider corporate strategy. Read more about Malta Company Formation & Registration.

Choosing a Fiduciary Service Provider in Malta

Selecting an appropriate fiduciary or trustee requires careful consideration. A trust can potentially remain in place for many years or even span multiple generations, making the choice of provider particularly important.

When assessing a fiduciary service provider in Malta, consider the following factors:

Regulatory Status

Determine whether the provider holds the appropriate authorisation for the services it proposes to deliver and verify the relevant regulatory information where applicable.

Experience and Expertise

The provider should have expertise appropriate to the client’s circumstances, assets, family requirements and relevant jurisdictions.

Governance and Compliance

Prospective clients should understand how the provider approaches matters such as governance, client due diligence, AML/CFT obligations, risk management, record keeping and ongoing administration.

Cross-Border Experience

For international families, establishing a structure in Malta is only one part of the overall planning process.

The interaction between Maltese law and the tax, succession and reporting requirements of other jurisdictions should also be taken into consideration.

Continuity and Administration

Trust and succession structures are often established with long-term objectives.

Clients should therefore consider the provider’s approach to continuity, administration, reporting, communication and governance alongside the initial establishment of the structure.

Why Choose Papilio?

Papilio Holdings Limited is registered with the Malta Financial Services Authority (MFSA) to receive property under trust and to act as trustee or co-trustee, provide other fiduciary services and to act as an administrator of private foundations. Learn more about Papilio.

Fiduciary and Trustee Services in Malta

Establishing a trust, private foundation or other fiduciary arrangement is a significant decision. The process should begin with a clear understanding of the client’s family circumstances, assets, business interests, succession objectives and international connections.

Malta provides an established legal and regulatory framework for trusts and fiduciary arrangements, alongside a broader ecosystem of corporate, legal, tax and financial services expertise.

For private individuals, families and entrepreneurs with Maltese or international interests, the right structure can provide an organised framework for the long-term administration of assets and succession planning.

Papilio Services can assist clients in assessing their requirements and coordinating the appropriate Malta-based corporate, fiduciary and professional services. Contact us to discuss your circumstances and determine the appropriate next steps.

*This article is intended for general information purposes only and does not constitute legal, tax, investment or financial advice. Professional advice should be obtained based on your individual circumstances.

Frequently Asked Questions About Fiduciary Services in Malta