Family Office Comparative Guide

1 Market snapshot

1.1 How embedded is the family office model in your jurisdiction? Describe its evolution to date.

Malta's emergence as an international family office hub is no accident. Since joining the European Union in 2004, Malta has meticulously crafted a legal and regulatory framework that aligns with EU standards while offering specific benefits to family offices as an integral part of the local private client offering. The country recognises family-held business units through a specialised governmental agency, the Family Business Office, which provides incentives and tax exemptions to facilitate seamless wealth transition to the next generation.

Malta has established clear pathways for obtaining residency permits for family office principals and staff. Whether through startup visas, entrepreneur visas, digital nomad visas or permanent residence permits for high-net-worth individuals and their families, Malta ensures that relocation is as straightforward as possible.

1.2 What types of families typically opt to set up a family office in your jurisdiction and what are the most common reasons for doing so? How has this changed over time?

Ultra-high-net-worth families from Europe, the Middle East and increasingly Asia choose Malta for:

• asset protection;
• tax optimisation; and
• succession planning.

The main reasons relate to the availability of a number of legal forms which are conducive to the operations of a family office which can be scaled and expanded in accordance with the family's needs over time. The legal framework allows for limited liability companies, trusts, private trust companies, foundations and investment funds to operate in a regulated and safe environment. Malta also has a long-term strategy of compliance, transparency and sustainability, which allows it to offer fiscal advantages that comply with international and EU tax laws. The country has a uniquely efficient corporate tax system for family offices and their associated vehicles, including exemptions on qualifying dividend income and capital gains.

As a full EU member state, Malta grants financial services companies licensed in the country passporting rights across the entire European Economic Area. This means that family offices providing regulated investment services can operate seamlessly throughout Europe. Malta provides a comprehensive toolkit for family offices, including:

• dedicated family office service companies;
• investment holding vehicles;
• asset-holding special purpose vehicles;
• private collective investment fund vehicles for family and friends, which are lightly regulated but still compliant with EU laws; and
• a respected Anglo-Saxon trust law tradition, codified to ensure cross-cultural compatibility and user-friendliness for Maltese family trusts and foundations.

1.3 Who are the main providers of family office services in your jurisdiction? How has this changed over time?

Family offices are served by a mix of:

• boutique law firms;
• fiduciary service providers;
• wealth management firms; and
• banks.

The market has shifted from generalist providers to more specialised multi-disciplinary teams.

Malta's banking sector is stable and secure, adhering to strict EU banking directives and maintaining high capital adequacy ratios. Homegrown banks such as Bank of Valletta, HSBC, Lombard Bank, APS Bank, MeDirect and Banif Bank have demonstrated prudence, weathering various banking crises without significant impact. While conservative, these banks offer wealth management services and act as custodians, contributing to the island's robust financial ecosystem.

1.4 Where are family offices typically located in your jurisdiction?

Malta's geographical position at the heart of the Mediterranean Sea serves as a strategic bridge between Europe and Africa. The country's proximity to major financial centres such as London, Paris, Frankfurt and Dubai facilitates seamless business transactions. Modern airports and seaports offer excellent connectivity to major cities worldwide; and a robust telecommunications infrastructure ensures reliable, high-speed internet connectivity – essential for global business operations.

As Malta is a small jurisdiction, there are no big distances between locations and family offices do not necessarily need to be close to their service providers. Most family offices are currently located in Valletta or nearby financial districts such as Sliema and St Julian's, where most of the legal, financial and corporate services community is concentrated.

1.5 What is the general approach of the government towards family offices in your jurisdiction? Have any programmes, incentives or similar initiatives been launched to encourage families to establish family offices in your jurisdiction?

The Maltese government, along with the Malta Financial Services Authority (MFSA) and professional bodies such as the Society of Trust and Estate Practitioners Malta branch, is actively working to enhance Malta's position as a leading destination for family offices.

Malta has undergone a process of discussion in order to establish a family office regime that incentivises family offices to set up in the jurisdiction. With a regulator – the MFSA – that is open to innovation, Malta has updated its regulatory framework through amendments to:

• the Investment Services Rules for Notified Professional Investor Funds and Related Due Diligence Service Providers; and
• the Trustees of Family Trusts Rulebook.

This affords flexibility in terms of the establishment and use of fund structures and private trust companies, which can be used not only to benefit the family but also to benefit their most trusted employees within the family office.

1.6 What industry codes of conduct, professional guidelines or similar govern family offices in your jurisdiction?

Family offices in Malta adhere to general regulatory standards for financial services, trusts and corporate governance. The MFSA has issued guidance and codes in relation to these areas and family offices would need to adhere to these standards.

2 Family office models

2.1 Which types of family office models are typically found in your jurisdiction (eg, single office; multi-office; virtual office)? What are the advantages and disadvantages of each?

Malta offers a diverse range of family office models, each tailored to meet the specific needs of high-net-worth and ultra-high-net-worth families. The primary models include single family offices (SFOs) and multi-family offices (MFOs).

SFOs: These are dedicated entities established to manage the wealth and affairs of a single family. SFOs provide comprehensive services such as:

• investment management;
• estate planning;
• philanthropic activities; and
• lifestyle management.

Recent regulatory amendments by the Malta Financial Services Authority have streamlined the establishment of SFOs, in particular by facilitating their management of notified professional investor funds (NPIFs) without the need for an investment services licence.

MFOs: MFOs serve multiple families, offering shared services that can lead to cost efficiencies. They are particularly beneficial for families seeking professional management without the overhead of establishing a dedicated SFO. MFOs in Malta often provide a range of services – including wealth management, tax planning and succession planning – tailored to the collective needs of their client families.

In addition to these models, Malta provides various legal structures to support family offices, including:

• trusts;
• foundations;
• holding companies; and
• limited partnerships.

These structures offer benefits such as asset protection, tax efficiency and succession planning, allowing families to tailor their family office to their specific objectives and preferences.

2.2 What services do family offices typically provide in your jurisdiction? Do these vary depending on the type of model?

In Malta, family offices – whether SFOs or MFOs – typically provide a broad range of services aimed at managing, preserving and growing family wealth, while also addressing generational continuity and lifestyle needs.

Core services across all models include the following:

• Wealth and investment management: Oversight of financial portfolios, direct investments and alternative assets, including the use of structures such as NPIFs.
• Tax and legal advisory: International and local tax planning, compliance with the Common Reporting Standard and the Foreign Account Tax Compliance Act, estate and inheritance law support.
• Succession and estate planning: Use of Maltese trusts, foundations and private companies to ensure seamless wealth transfer.
• Corporate structuring: Formation and administration of holding companies, special purpose vehicles and investment platforms.
• Philanthropy and environmental, social and governance planning: Establishment and management of charitable foundations and impact investing strategies.
• Concierge and lifestyle services: Including property management, private travel and personal security, especially in SFOs and some high-end MFOs.

Model-based variations include the following:

• SFOs typically offer bespoke, end-to-end solutions with dedicated staff and in-house capabilities.
• MFOs provide a menu of shared services – often investment focused – with optional add-ons for tax and legal support.

The service scope and delivery model in Malta can be adapted to a family's complexity, size and international footprint, benefiting from the jurisdiction's flexible legal and financial ecosystem.

2.3 What key factors should a family consider in selecting the most appropriate model for their needs?

Cost, complexity of assets, family size, geographical footprint and desire for control are key. A newly wealthy family may start with an MFO and transition to an SFO as complexity increases or alternatively start with a smaller-sized SFO in terms of structure and scale it over time. The establishment of a holding company with the required support services from lawyers and financial advisers to hold family assets could be the first step in setting up a family office structure.

3 Ownership structures

3.1 What types of ownership structures are typically used for family offices in your jurisdiction? What are the advantages and disadvantages of each?

Typical family office structures include those using Malta holding companies, trusts, private trust companies and other limited liability companies as asset holding vehicles. All of these entities offer asset protection, estate planning benefits and flexibility to different extents.

The Maltese standard income tax rate on corporate profits is 35%. However, upon a distribution of profits to its shareholder, a refund of all or part of the income tax paid at the distributing company level may be claimed (subject to the satisfaction of all relevant conditions). The amount of income tax refund which may be claimed depends on the type and source of income received by the company. Post income tax refund, the Maltese effective income tax rate may range from 0% to 6.25%. Generally, profits which are derived from a trade or service offering should result in an effective income tax rate of 5%. Income and capital gains may also be fully exempt from income tax in Malta by applying the participation exemption rules.

Maltese companies benefit from a participation exemption based on the participating holding rules, both on dividends from such holdings and on gains arising from the disposal of such holdings. Maltese holding companies can be structured to hold shares in other companies. Such participations in other companies held by Malta holding companies qualify as participating holdings if they meet either of the following conditions:

• The holding is at least 5% of the equity shares of a company whose capital is wholly or partially divided into shares; and
• Such holding gives the right to at least 5% of two of the following:
• • the right to vote;
  • the right to profits upon distribution; and
  • the right to assets available for distribution on winding up.

From a tax perspective, a trust is taxed in Malta if it is managed by Maltese trustees. All income received by the trust is taxable in Malta, but specific scenarios receive particular treatment. Malta uses two transparency models for trusts with non-resident beneficiaries and non-Malta assets or shares in a Malta company. The income is attributed directly to the beneficiaries, who may be taxed based on their residency and domicile.

A trust can be converted into a foundation and vice versa, adding flexibility. A Malta foundation is treated as a company for tax purposes but can also opt to be treated as a trust.

3.2 Are all of these structures available to families based outside the jurisdiction? If not, what options are available to them?

All structures are open to families based outside of Malta. Malta's laws are designed to accommodate international investment and families wanting to relocate to Malta through various residence options, with corporate structures that comply with EU and Organisation for Economic Co-operation and Development standards. Malta's residency and citizenship programmes, such as the Malta Permanent Residence Programme and options for citizenship by naturalisation, offer flexibility for families to choose their level of residency commitment. The island's status as a multicultural hub, strategically located between Europe, Africa and the Middle East, creates a welcoming atmosphere that eases integration for international families.

3.3 What key factors should a family consider in selecting the most appropriate ownership structure for their needs?

In considering a new family office setup or the relocation of an existing family office, families and their advisers take into account the following considerations.

Risk control: The minimisation of risk is an issue that all setups have to deal with, whether in the family environment or in the business environment. The management of risks which cannot be avoided is also key for the family to be able to realise their vision and succeed over multiple generations.

Financial control: In terms of the assessment of financial control together with their advisers, the family should consider their current investment strategies and their asset spread. Costs must be looked at with the aim of controlling these in a world where returns are looking more endangered and unpredictable. While traditionally families were advised of the risk of future generations tampering with the wealth built by their ancestors and the risk of that being lost with the introduction of the second and third generations to the decision-making processes, families are now also at risk of losing their wealth because of external forces. Inflation cost should be one of the main factors under consideration.

Family offices designed around the family's values and needs: The COVID-19 pandemic has shown us that health threats can be sudden and devastating. Families have realised that preparing the next generation to take over is an ever-pressing need that should be dealt with sooner rather than later. Heirs need to be trained not only in family investment strategies but also in how to deal with major threats such as a pandemic or a war. Having access to global deals is a reality that the next generation needs to be geared up for, because it can present opportunities as much as threats.

A family vision is at the core of leading the family office into the right direction. The family members should understand all the details, including:

• cost to income ratios;
• growth rates; and
• the likelihood of new risks emerging, their likely impact and how these can be mitigated.

The choice of jurisdiction and adviser is central to this and has an inevitable impact on the success of the family office. Malta as a jurisdiction provides a politically stable environment. All its laws are codified and available in English, which is a primary language and is recognised as the main business language. All administrative process with the authorities can also be conducted in English.

4 Establishment and operation

4.1 What formal and substantive requirements are required to establish a family office in your jurisdiction?

To establish a family office in Malta, families must follow a structured process involving legal, regulatory and operational steps. These vary depending on whether the family office is a single family office (SFO) or multi-family office (MFO).

Legal structure and registration: Families typically use legal vehicles such as private limited liability companies, trusts, foundations or private trust companies. The chosen entity must be registered with the Malta Business Registry, which involves:

• submitting the memorandum and articles of association;
• appointing directors and a company secretary;
• declaring the ultimate beneficial owners; and
• paying registration fees.

These processes will usually be supported by local legal advisers and company service providers.

Licensing requirements:

• SFOs: As per recent Malta Financial Services Authority (MFSA) guidance, SFOs managing assets exclusively for one family are not required to obtain an investment services licence, provided that they do not offer services to third parties.
• MFOs: Since they serve multiple unrelated families, MFOs typically require licensing under the Investment Services Act and are subject to MFSA supervision.

Substance and physical presence: SFOs and MFOs are expected to maintain a local presence through an office in Malta.

Key personnel: While SFOs have flexibility in staffing, MFOs must appoint qualified and experienced individuals to key positions, such as the following:

• directors;
• compliance officers; and
• money laundering reporting officers.

Compliance and reporting: All family offices must adhere to Malta's anti-money laundering (AML) and counter-terrorism financing (CFT) regulations, requiring registration with the Financial Intelligence Analysis Unit as subject persons. They must also:

• obtain a tax identification number;
• register for value-added tax (if applicable); and
• comply with annual corporate filings and tax reporting obligations.

4.2 What are the typical costs involved in establishing and operating a family office in your jurisdiction? How do these vary depending on the chosen model and structure, and/or the services provided?

This entirely depends on:

• the chosen model for the family office;
• staffing requirements; and
• office location.

Costs must be calculated on a case-by-case basis.

4.3 What regulatory requirements apply to family offices in your jurisdiction? How do these vary depending on the chosen model and structure, and/or the services provided?

In Malta, family offices have regulatory requirements that vary by model and the nature of their activities. SFOs benefit from a streamlined regulatory framework since they serve only one family and do not offer services to the public, allowing them to operate without an investment services licence. However, should an SFO engage in activities such as trust management or fiduciary services, specific authorisations or recognitions may be necessary under the relevant legislation.

MFOs, offering services to multiple unrelated families, fall within the scope of financial services regulation and must obtain a licence from the MFSA. These entities are subject to comprehensive regulatory oversight, including:

• capital requirements;
• governance standards;
• compliance procedures; and
• reporting duties.

All family offices, regardless of structure, must adhere to Malta's AML and CFT laws, ensuring proper client due diligence and monitoring. Compliance with data protection laws such as the General Data Protection Regulation is also mandatory, particularly when handling sensitive family information. Additionally, family offices should be mindful of ongoing corporate, employment and tax obligations, including economic substance rules that apply to entities conducting financial or holding activities within Malta.

4.4 What other concerns and considerations should be borne in mind in relation to the establishment and operation of family offices in your jurisdiction?

1. Intergenerational continuity and succession planning: Malta's favourable offering as a jurisdiction for family offices lies not only in its regulatory clarity but also in its suitability for multigenerational wealth management. Families establishing offices here must consider how their structures will adapt to changing family dynamics, such as generational transitions, evolving governance preferences, and shifting investment philosophies. The ability to embed flexible succession mechanisms—including trusts, foundations, or hybrid structures—is critical to long-term sustainability.

2. Cross-border complexity and cultural sensitivity: Given Malta's strategic location and its role as a hub for families with assets and members across Europe, the Middle East, and Africa, family offices often face cross-border legal, tax, and cultural challenges. These include navigating conflicting inheritance laws, residency-based tax exposures, and differing family governance expectations. A successful family office must be equipped to manage these complexities with culturally attuned advisors and multijurisdictional expertise.

3. Talent acquisition and retention: While Malta boasts a multilingual and skilled workforce, family offices—especially those with bespoke or investment-heavy mandates—should plan for talent acquisition and retention. This includes not only retaining legal and fiduciary professionals or firms but also investment analysts, family governance specialists, and lifestyle managers.

4. Governance culture and family dynamics: Beyond formal structures, the culture of governance within the family office is pivotal. Malta's legal framework supports robust fiduciary oversight, but families must also invest in soft governance: shared values, dispute resolution mechanisms, and communication protocols. These are especially important in preventing fragmentation and ensuring alignment across generation.

5. Real estate and lifestyle asset management: Family offices in Malta often manage real estate portfolios and lifestyle assets (e.g., yachts, art, aircraft). These require specialised structuring for tax efficiency, liability protection, and succession. Offices must also consider operational oversight, including property management, leasing, and compliance with local regulations.

5 Governance

5.1 What key risks do a family office and family members face in your jurisdiction, and what processes, policies and procedures should be put in place to mitigate them?

The risks present in Malta are the same as those in any other jurisdiction and relate more to the way in which the family office operates rather than specifically to the jurisdiction. They include:

• conflicts of interest;
• asset mismanagement risks;
• potential family disputes; and
• potential regulatory breaches.

Mitigation includes:

• maintaining clear governance protocols and procedures;
• retaining lawyers for ongoing legal advice; and
• adhering to local rules and regulations and independent audits.

5.2 What key documents (eg, family charter/value statement/mission statement) should guide the activities of the family office, and how should these be developed and updated?

Important documents include:

• a family constitution;
• a governance charter; and
• an investment policy statement.

These should be living documents updated with the family office's legal advisers at least annually, but also when key family events occur.

5.3 How should the family office communicate and engage with key stakeholders (eg, family members; trusted advisers; the media)?

Regular family meetings, quarterly reporting and open lines with external advisers are essential. It is also good practice to:

• have a media protocol in place; and
• appoint legal advisers to handle any media exposure if and when it arises in relation to reputation management matters.

5.4 How and by whom should oversight of the activities of the family office be exercised?

Typically, oversight is managed via a board or family council, including both family and non-family professionals. An advisory board that includes legal and financial professionals can also provide independent perspective.

5.5 What other concerns and considerations should be borne in mind in relation to the operation of the family office from a governance perspective?

Succession planning is the most critical long-term governance concern. Clear roles for and mentoring of younger generations are essential for continuity. One effective method of inducing younger generations to align their thinking and reasoning when it comes to investment strategies with those of the older generation is to include them in the decision-making process early on. This can be achieved in various ways, including by having them be present with family advisers during their meetings. Giving them roles as directors in a private trust company is another way of involving them in the decision-making process on a long-term basis. A private trust company allows for the appointment of family members on the board of directors; one of the directors should also be a professional with knowledge of the Malta trust legislation and requirements. This is a good opportunity for all generations to sit on the same board and exchange ideas while also having another member of the board who can see to the formal requirements.

6 Family office activities

6.1 What specific concerns and considerations should be borne in mind in relation to the following activities of family offices in your jurisdiction? (a) Investment and wealth management; (b) Tax management; (c) Succession planning; (d) Estate planning; (e) Management of real estate; (f) Management of luxury assets (eg, private jets; yachts; art collections); (g) Reputational management; (h) Education and development of upcoming generations; (i) Hiring and management of staff (eg, domestic, PAs, security, other); and (j) Other

(a) Investment and wealth management

Considerations here should centre on the actual activity being proposed in order to check whether this needs any specific authorisation or recognition by the local authorities. It is advisable to appoint legal advisers in this regard.

(b) Tax management

Considerations here should centre on:

• the applicable taxes that the family office structure will need to pay; and
• the required annual filings.

It is advisable to appoint tax advisers in this regard.

(c) Succession planning

Considerations here mainly relate to ensuring the smooth transition of wealth and management responsibilities to the next generation. This includes:

• identifying and preparing successors;
• setting up systems to manage potential disputes among heirs; and
• tackling private international law issues that may arise with families having a base in various jurisdictions, including:
• • ownership of assets in various jurisdictions; and
  • potentially multiple nationality, domicile and residence statuses which might have an impact on the laws applicable to the estate, the applicable taxes that the family office structure will need to pay and the required annual filings.

(d) Estate planning

When it comes to estate planning for family offices, there are several key concerns and considerations to keep in mind.

Tax implications: Estate planning often involves significant tax considerations. It is essential to understand the tax laws in relation to the family members' residence and asset location, including any:

• inheritance tax;
• estate tax; and
• gift tax.

Malta has no inheritance tax, estate tax or gift tax. It does have a transfer tax for certain categories of local assets, including real estate. Proper planning can help to limit the tax burden on the estate and beneficiaries.

Asset protection: Protecting the family's assets from potential creditors or legal claims is a crucial aspect of estate planning. This may involve setting up Malta trusts or other legal structures to safeguard assets.

Legal compliance: Estate planning must comply with local laws and regulations. This includes adhering to legal requirements for:

• Maltese wills;
• Maltese trusts; and
• other estate planning documents or instruments.

Philanthropic goals: Many family offices have philanthropic objectives. Estate planning should consider how to incorporate charitable giving in a way that aligns with the family's values and goals.

Privacy and confidentiality: Maintaining the privacy and confidentiality of the family's financial affairs is often a priority. Estate planning should address how to protect sensitive information.

International considerations: For families with assets or members in multiple countries, it is important to consider the international aspects of estate planning, including cross-border tax issues and legal requirements.

(e) Management of real estate

Real estate is a key investment class for family offices, offering both wealth preservation and income opportunities. In Malta, managing such assets requires a strategic approach that blends local legal compliance with international best practices in:

• governance;
• risk management; and
• succession planning.

Family offices must navigate complex real estate regulatory requirements, including permits, zoning laws and cross-border tax considerations, often using trusts or foundations to optimise ownership.

Establishing clear governance structures – such as private trust companies – enhances transparency and ensures long-term stewardship across generations. Effective asset and rental management – including careful tenant selection, solid lease agreements and regular maintenance – helps to protect property value. For commercial property, family offices should:

• consider sector diversification (eg, logistics, healthcare, student housing); and
• incorporate flexible, ESG-compliant lease terms.

The acquisition and disposal of real estate involves due diligence, valuations and scenario planning, which should be aligned with family plans and legacy goals, including philanthropic goals (eg, repurposing historic Maltese buildings for cultural or educational initiatives). Ongoing property management, health and safety compliance and scheduled maintenance are critical for sustained asset performance.

(f) Management of luxury assets (eg, private jets; yachts; art collections)

When managing luxury assets and family heirlooms such as private jets, yachts and art collections, family offices should consider several important factors.

Valuation and insurance: Regular valuation of luxury assets is crucial to ensure they are adequately insured. This helps to protect against potential losses due to:

• damage;
• theft; or
• depreciation.

Maintenance and upkeep: Luxury assets require ongoing maintenance to preserve their value. This includes:

• regular servicing of private jets and yachts; and
• proper storage and conservation of art collections.

Legal and regulatory compliance: Ownership and operation of luxury assets often involve complex legal and regulatory requirements. For example, private jets and yachts may need to comply with aviation and maritime laws, respectively. Art collections may be subject to cultural property laws and export restrictions.

Tax implications: The management of luxury assets can have significant tax implications. It is important to understand the tax treatment of these assets, including:

• potential deductions for maintenance expenses; and
• the impact of capital gains tax on sales.

Security and risk management: Ensuring the security of luxury assets is paramount. This may involve implementing advanced security measures, such as:

• surveillance systems for art collections; and
• secure storage facilities for yachts and private jets.

Succession planning: Incorporating luxury assets into the broader estate and succession planning strategy is essential. This ensures that:

• assets are transferred smoothly to the next generation; and
• any potential disputes among heirs are minimised.

Liquidity considerations: Luxury assets can be illiquid, meaning that they may not be easily converted to cash. Family offices should consider the liquidity needs of the family and plan accordingly, potentially setting aside funds to cover maintenance and other expenses.

Philanthropic goals: For families with philanthropic interests, luxury assets can be used to support charitable activities. For example:

• art collections can be donated to museums; and
• yachts can be used for fundraising events.

(g) Reputational management

Reputational management is a critical aspect for family offices, as it helps to maintain the family's public image and trust. Key concerns and considerations include the following:

• Public perception: It is essential to monitor and manage how the family and its activities are perceived by the public. This includes being mindful of:
• • media coverage;
  • social media presence; and
  • public statements.
• Crisis management: Having a robust crisis management plan in place is crucial. This plan should outline steps to take in the event of negative publicity or other reputational threats, including:
• • clear communication strategies; and
  • designated spokespersons.
• Ethical conduct: Ensuring that all family office activities are conducted ethically and in compliance with laws and regulations is fundamental. This helps to prevent scandals and legal issues that could damage the family's reputation.

(h) Education and development of upcoming generations

When it comes to the education and development of upcoming generations within family offices, the following key concerns and considerations should be taken into account.

Personalised education plans: Tailoring education plans to meet the unique needs, interests and strengths of each family member is crucial. This may involve selecting the right schools, extracurricular activities and specialised programmes to foster their development.

Financial literacy: Ensuring that the next generation is well versed in financial literacy is essential. This includes teaching them about:

• investment strategies;
• wealth management; and
• the responsibilities that come with managing family wealth.

One of the most effective ways of introducing the next generation to the investment policy of the family, their preferences in relation to investment, impact investing, boardroom negotiation skills and governance is through the involvement of the younger members of the family on boards of family-owned companies, including those that form an integral part of the structure of the family office for instance private trust companies. On the boards of private trust companies, individuals will get exposure not only to the conduct of other family members but also to professionals who are required to act for Malta private trust companies. This could be an effective way of offering mentorship and guidance.

(i) Hiring and management of staff (eg, domestic, PAs, security, other)

There are several considerations to make in this respect, including the process of recruitment and selection. It is crucial to have a thorough recruitment process to ensure that the right candidates are selected. This includes:

• conducting background checks;
• verifying qualifications; and
• assessing the candidate's fit with the family's values and culture.

Another consideration is legal and regulatory compliance. Family offices must comply with employment laws and regulations in Malta. This includes:

• ensuring that proper employment contracts are in place; and
• understanding the legal requirements for hiring:
• • domestic staff;
  • nannies;
  • personal assistants;
  • security personnel; and
  • other employees.

Other considerations include:

• compensation and benefits;
• performance management;
• confidentiality and trust; and
• cultural sensitivity.

7 Philanthropy and ESG

7.1 What forms does philanthropy typically take in your jurisdiction? What are the advantages and disadvantages of each?

Philanthropy in Malta often takes the form of charitable foundations or trusts, favoured for their flexible governance and continuity. Foundations offer tax benefits and can be tailored to long-term family goals. Direct donations are simpler but lack structural continuity. Impact investing is emerging, balancing social/environmental goals with financial returns, although measuring impact remains a challenge.

7.2 How embedded is impact investing in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?

Impact investing is gaining traction as international families with their family offices in Malta and Maltese families increasingly seek to align investments with environmental, social and governance (ESG) principles. As in other jurisdictions, challenges include:

• verifying impact;
• balancing returns; and
• integrating ESG into traditional investment strategies.

Due diligence and clear impact metrics are essential.

7.3 In what ways is the environmental, social and governance (ESG) agenda shaping the activities of family offices in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?

The ESG agenda influences family offices to adopt sustainable investment practices and enhance governance standards. Regulatory frameworks encourage ESG disclosure, but families must ensure that these efforts do not compromise financial goals. Long-term commitment and transparent reporting are key.

7.4 What other concerns and considerations should be borne in mind in relation to philanthropy and ESG in your jurisdiction?

Effective philanthropy and ESG integration require:

• strategic planning;
• clear objectives; and
• governance structures that align with family values.

Monitoring impact and compliance with evolving regulations are critical to avoid reputational risks.

8 Talent acquisition and retention

8.1 What key personnel does a family office require for its smooth operation? How does this vary depending on the chosen model and structure, and/or the services provided?

Needs vary, but common roles include the following:

• chief executive officer;
• chief investment officer;
• chief financial officer;
• legal counsel; and
• estate/family manager.

With a good strategy also involving outside advisers, a family office can limit the amount of dedicated full-time personnel while taking advantage of a multi-professional environment in which diverse expertise gained from other projects can be leveraged.

8.2 What are the optimal strategies for attracting talent to a family office in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?

Beyond tax and regulatory advantages, Malta offers an exceptional quality of life that contributes to long-term satisfaction for relocating families and professionals working with family offices. The country boasts:

• a temperate climate;
• a safe environment;
• top-tier educational institutions; and
• a leading-edge healthcare system.

Malta's rich history – shaped by the Phoenicians, Romans, Moors and British – informs a vibrant cultural scene with internationally renowned festivals such as the Malta International Arts Festival and the local carnival.

8.3 Do family members typically assume official positions in family offices in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?

In Malta, it is common for family members to hold official positions within single family offices, often serving as directors or key decision makers. This involvement helps to maintain control and align the office's activities with the family's values and objectives. However, family members assuming such roles must be aware of their legal and fiduciary duties, including compliance with:

• Maltese company law;
• anti-money laundering regulations; and
• governance best practices.

They should understand:

• potential conflicts of interest;
• personal liability risks; and
• the need for proper documentation and transparency.

Professional training or advisory support is often recommended to equip family members with the necessary skills to fulfil their roles effectively while balancing family dynamics.

8.4 What other key concerns and considerations should be borne in mind concerning the attraction and retention of talent in family offices in your jurisdiction?

Attracting and retaining qualified talent is crucial for the successful operation of family offices in Malta. Key considerations include offering competitive remuneration and benefits aligned with international standards to attract experienced professionals. Given Malta's small but growing family office ecosystem, firms often rely on a blend of local expertise and international hires. Maintaining a positive work culture that respects family values, ensures confidentiality and provides career development opportunities is essential to retain staff. Additionally, clear governance structures and defined roles help to reduce ambiguity and improve job satisfaction. Outsourcing specialised functions such as legal, tax, or investment advisory can complement in-house teams and provide flexibility. Finally, attention to regulatory compliance, data protection and confidentiality is paramount, as family offices handle highly sensitive information requiring trusted personnel.

9 Dispute resolution

9.1 In which forums are family disputes typically resolved in your jurisdiction? What issues do these disputes typically involve?

Disputes often go to mediation or arbitration, avoiding public litigation. However, if the need arises, one might escalate the issue to the courts of Malta. Matters include:

• inheritance;
• governance; or
• asset control.

9.2 What specific considerations and concerns should be borne in mind in relation to the resolution of family disputes in your jurisdiction?

Confidentiality, cultural sensitivities and reputational damage make non-litigious methods preferable. Malta has an arbitration centre which offers alternative dispute resolution.

9.3 What specific considerations and concerns should be borne in mind where family disputes involve international aspects?

Cross-border disputes require careful jurisdictional planning and multilingual legal support. Choice of law clauses are essential.

10 Cessation of activities

10.1 Under what circumstances might a family decide to cease the activities of its family office in your jurisdiction? What key concerns and considerations should be borne in mind in this regard?

Activity may cease due to:

• asset divestiture;
• relocation; or
• internal conflict.

Unwinding structures, transferring staff and tax exit strategies require careful planning.

11 Trends and predictions

11.1 How would you describe the current family office landscape and prevailing trends in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms that may affect the operation of family offices?

Malta's family office sector is rapidly growing, driven by attractive tax policies and a robust legal framework. Increasing interest in multi-family offices reflects demand for flexible, cost-efficient solutions. Legislative reforms are expected to clarify regulations around:

• digital assets; and
• environmental, social and governance compliance.

Enhanced substance and anti-money laundering rules are also anticipated, alongside support for fintech and blockchain innovations. These trends signal a maturing market balancing regulation and business innovation.

12 Tips and traps

12.1 What are your top tips for the smooth operation of family offices in your jurisdiction and what potential sticking points would you highlight?

Our top tips are as follows:

• Establish clear governance and succession plans. Engage experienced local advisers.
• Leverage Malta's flexible legal structures.
• Maintain transparency and open communication with family stakeholders.
  Ensure compliance with anti-money laundering and substance requirements.

Common traps include:

• neglecting ongoing regulatory compliance;
• underestimating the importance of substance and local presence;
• overlooking family dynamics in governance;
• relying too heavily on virtual services without robust oversight; and
• failing to sufficiently measure the impact of environmental, social and governance and philanthropy initiatives.

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.