Setting Up A Private Trust Company In Malta

Private Trust Companies (PTCs) offer families and high-net-worth individuals a tailored solution for trust administration. Malta's regulated yet accessible framework allows settlors to appoint trusted individuals - often family members - as directors, ensuring control, confidentiality, and continuity. This publication outlines the legal basis, structure, benefits, and practical considerations of setting up a PTC inMalta.

Key Legal Points

• Legal and Regulatory Framework Governing Private Trust Companies in Malta
• Governance, Compliance, and Director Obligations in Maltese Private Trust Companies
• Comparative Legal Analysis: Malta Private Trust Companies vs Traditional Trust Structures

What is a Private Trust Company?

The concept of aPrivate Trust Company (PTC)is relatively new to Maltese legislation, formally introduced into Maltese law in 2014 under theTrusts and Trustees Act. It has created a clear legal framework for families to establish their own trustee company. This development builds on Malta's long-standing trust tradition, offering a modern and flexible alternative to professional trustees within a regulated environment.

A Private Trust Company is a limited liability company established to act as trustee for one or more family trusts, allowing settlors to appoint trusted individuals - often family members or advisors - as directors. This structure preserves the core trust relationship between settlor, trustee, and beneficiary, while introducing a formal corporate entity to administer the trust.

A PTC enables the creation of a legal entity that holds and administers trust property for the benefit of others, with the following key roles:

The Settlor:The individual who establishes the trust and contributes the assets to be held by the PTC.

The PTC (Trustee):A corporate entity that holds legal title to the trust property and administers it according to the trust deed and fiduciary obligations.

The Beneficiary:The person entitled to benefit from the trust, either through a vested right or at the discretion of the trustee.

The trust deedremains central to the structure, outlining the responsibilities of the PTC and the rights of the beneficiaries.

Setting up a Malta Private Trust Company

With the legal framework in place, families can proceed to establish a Private Trust Company in Malta by considering key governance, regulatory, and succession factors such as:

• Control Over Trust Administration:Appoint family members or advisors as directors to have a say in the decisions affecting the family trusts.
• Confidentiality and Privacy:Enhance privacy by retaining mainly the family as being involved in trust management.
• Cost Efficiency:Avoid recurring trustee fees with a tailored, long-term solution.
• Succession Planning and Continuity:Ensure structured wealth transfer andadministrative stability.
• Regulatory Simplicity:Operate through recognition without the need for a full MFSA authorisation under clear rules.
• Integration with Family Offices:Consolidate governance and asset management under one structure.

The advantages of a Malta Private Trust Company

A Malta Private Trust Company offers families direct control over trust decisions, cost savings, enhanced privacy, and a streamlined setup process - often completed within two months. Operating under a clear regulatory framework, it provides a more flexible alternative to other trustee arrangements.

While the benefits are substantial, families should be aware of the need to appoint qualified directors (including a trust expert), maintain compliance with MFSA rules, and manage the administrative responsibilities of a corporate entity.

Private Trust Company vs Professional/Traditional Trustee

Malta's Private Trust Company framework empowers families to manage their trusts with autonomy, privacy, and long-term vision. With a clear legal structure and minimal regulatory burden, PTCs offer a compelling alternative to traditional trustees - ideal for those seeking a bespoke, family-led approach to wealth and succession planning.

Originally published 23/07/2025.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.