Maltese Residency For Investment Family Offices

Investment family offices that are setting up an investment structure in Malta (or even a branch thereof) have been given an additional incentive to choose Malta as an EU base due to a new residency law interpretation.

On the 3^rd of December, the MFSA issued a circular together with Malta's immigration authorities titled "Joint MFSA and Residency Malta Agency Communication on a New Residency Scheme for Family Offices".

The circular explicitly "focuses on granting residence permits to individuals forming part of a family office structure", notably ultimate beneficial owners (UBOs) and qualifying senior employees. This initiative is intended to enhance Malta's attractiveness to high net worth individual (HNWI) families establishing an office or branch on the islands.

Family offices in Malta already benefit from a licensing exemption and they can be Shariah-compliant too. Notably, this circular says "branches thereof" which means that an investment family office does not necessarily need to be entirely based in Malta. The main family office can be elsewhere and the Maltese office is solely used for EU affairs management or for other tax purposes. This is in line with Malta's application of proportionality and regulatory flexibility.

The MFSA explains that eligible entities must (i) form part of a family office structure and (ii) be "duly authorised by the MFSA". The term "authorisation" is broadly defined to include any licence, registration, recognition, notification or other MFSA approval. Importantly, the MFSA does not regulate "family office" as a standalone licence category; rather, family offices in Malta can adopt various legal forms (holding companies, trusts, foundations, funds, etc.), each potentially requiring MFSA approval if engaging in regulated activities. Thus, a family office will typically involve one or more Maltese vehicles (e.g. a company or fund) that fall under the MFSA's remit via the Investment Services Act, Trusts and Trustees Act, or other laws.

A key benefit for HNWIs is the entitlement to reside in Malta under national law. The circular provides that residence permits (not just visas) will be provided which allow holders to live, work and study in Malta. Malta is in the EU Schengen Area, so non‑EU residents with a Maltese residence permit can travel freely within Europe's Schengen zone for short stays.

This new residency route is still subject to the "satisfactory outcome of the relevant application process" under Maltese immigration law and cannot be construed to be automatic. Residency Malta Agency can still reject a residency permit if there are any grounds for refusal. The benefit with this new interpretation is that for a non-EU national to apply for residency, one does not need to prove employment or investment in Malta other than beneficial ownership in the family office structure. However, compared with other residency-by-investment or employment schemes, this framework has no upfront investment requirement beyond establishing the MFSA-registered family office (but there are minimum investment thresholds to establish certain family offices).

For HNWIs who relocate to Malta, residence-based taxation can be advantageous. Malta allows individuals who are tax-resident but not domiciled in Malta to be taxed only on Malta-source income and on foreign income when remitted to Malta. This matches many family office principals' patterns of wealth (often held in international investments) and can be more efficient than worldwide taxation.

Moreover, a permit holder working for a family office in Malta will become tax‑resident and benefit from domestic rates (and potentially preferential tax treatment as per L.N. 250 of 2025 titled the 'Senior Employees of Family Offices, Back Offices and Treasury Management Operations Tax Rules'). L.N. of 250 provides that senior staff of licensed family offices can elect to pay tax on their Malta-source employment income at a flat preferential rate. Thus, qualifying roles (e.g. CEO, Head of Investment, Compliance Officer) in an MFSA‑licensed family office (or affiliated back-office/treasury firm) benefit from this preferential tax under the Income Tax Act.

The circular's eligibility criteria, namely having an MFSA‑authorised family office plus a senior employee or UBO, tie the residency scheme directly into Malta's financial regulatory approvals. Although the residency application process is administered by the Residency Malta Agency (RMA) and will involve due diligence by RMA, the MFSA will still conduct its "fitness and properness" through the personal questionnaire (PQ) and corporate questionnaires (CQs) as applicable

Beyond tax and immigration, Malta offers operational advantages for family offices. The jurisdiction has a sophisticated financial services ecosystem: licensed trustees, fund administrators, legal advisors and banks familiar with private wealth matters. This enables families to outsource administration or compliance while retaining investment control.

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.