Estructuras de Family Office en Malta: Gestión de grandes patrimonios con un tipo impositivo efectivo del 5 % – Planificación fiscal para High-Net-Worth Individuals

Malta Family Office: What You Need to Know About the 5% Effective Tax Rate

Before we get into the details, let’s clarify a misconception. A Family Office isn’t just for the super-wealthy. In Malta, you can benefit starting from €1.2 million in assets.

What Is a Family Office in Malta?

A Malta Family Office is a professional asset management company focused solely on your private wealth. That means: investment management, tax planning, estate planning, and administrative services—all from one provider.

The key? Malta offers Family Offices one of the most attractive tax regimes in Europe.

But how does it work in detail?

The Malta 6/7 Rule: Core of the Tax Benefits

Malta operates with a unique tax system known as the 6/7 Rule. Here’s what that means:

• Corporate Tax: 35% on all profits (sounds high, but wait for it)
• Tax Refund: 6/7 of the tax paid is refunded to shareholders
• Effective Tax Rate: 5% on distributed profits
• Capital Gains: 0% tax for non-resident companies

Let’s run the numbers: On €100,000 profit, you first pay €35,000 corporate tax. You receive €30,000 back. Your actual tax burden? €5,000.

That equals an effective tax rate of 5%.

EU Compliance: The Decisive Advantage

This is where it gets interesting. Unlike many other low-tax countries, Malta is a fully-fledged EU member. Which means:

• Automatic access to the EU single market
• No blacklist issues with German banks
• EU Parent-Subsidiary Directive applies
• Double taxation treaties with over 70 countries

You also benefit from EU freedom of movement. As an EU citizen, you can move to Malta anytime, without complicated visa processes.

Minimum Investment Requirements: What You Need to Bring

Malta sets clear requirements for Family Offices:

These requirements are intentional. Malta wants legitimate Family Offices, not just mailbox companies.

Malta Family Office Structures: The Practical Step-by-Step Setup

Let’s get practical. I’ll show you how to set up a Malta Family Office structure. I use this setup for 80% of my high-net-worth clients.

The Optimal Malta Family Office Structure

A typical Malta Family Office structure consists of three tiers:

1. Malta Holding Company: Your main company (parent company)
2. Malta Trading Company: For operating business (if needed)
3. Family Office License: Professional asset management

Why this structure? It separates operating risks from your private wealth. It also optimizes your tax burden at every level.

Step 1: Malta Company Formation

The first step is incorporating your Malta holding company. This usually takes 7-10 working days and costs around €3,500.

You’ll need:

• At least €1,164 share capital
• A Maltese registered office
• At least one local director
• Company Secretary (must be Malta-qualified)

A tip from experience: Use an established service provider for director services. Costs about €2,400 per year, but saves a huge amount of hassle.

Step 2: Apply for Family Office License

Apply for the Family Office License at the Malta Financial Services Authority (MFSA). The process takes 3-6 months.

The MFSA will check:

• Fit and Proper test: Are the directors suitable?
• Business Plan: How will you manage the assets?
• Compliance Framework: Do you have adequate controls?
• Financial Resources: Is the equity sufficient?

License fees are €2,330 once plus €1,165 per year.

Step 3: Apply for Tax Ruling

Here’s the interesting part. You can apply for a tax ruling from the Maltese tax authorities. This gives you legal certainty for your tax planning.

The tax ruling specifically confirms:

• Your effective tax rate of 5%
• The applicability of the 6/7 Rule
• Tax exemptions on capital gains
• Treatment of foreign income

Costs: €5,000–€8,000. But in return, you get five years of legal certainty.

Banking and Substance Requirements

Malta expects real economic activity. That means:

• Local bank account: At least at a Maltese bank
• Office space: Doesn’t have to be big, but must be genuinely available
• Local staff: At least one qualified employee
• Board meetings: Regularly held in Malta

Many of my clients use shared office solutions. This costs around €600 per month and meets all substance requirements.

Malta vs. Dubai vs. Cyprus: Family Office Locations Compared

I hear this question every day: Richard, why Malta and not Dubai or Cyprus?

Good question. Let’s look at the numbers.

Tax Comparison: The Hard Facts

At first glance, Malta is a clear winner. But there’s more to consider.

Dubai DIFC: The Newcomer with a Catch

Dubai introduced a 9% corporate tax in 2023. There are exceptions for Family Offices, but they’re complicated.

Advantages of Dubai:

• No personal income tax
• Excellent banking infrastructure
• Golden Visa programs
• Strategic location between Europe and Asia

Disadvantages of Dubai:

• High cost of living (30–50% above Europe)
• Substance requirements are very strict
• No automatic access to the EU market
• Blacklist risks with German banks

You also have to spend at least 90 days per year in Dubai. That isn’t for everyone.

Cyprus: The Classic EU Option with Drawbacks

For a long time, Cyprus was the standard for EU tax planning. But times are changing.

Why Cyprus is Losing Appeal:

• 12.5% corporate tax with no refund
• Increased substance requirements since 2019
• Reputation problems after cum-ex scandals
• EU pressure on aggressive tax planning

Still, Cyprus has its advantages: EU membership, established legal system, low income tax for non-dom status.

Malta: The Sweet Spot for European Entrepreneurs

Why do I recommend Malta so often? It’s the perfect compromise.

Malta’s Unique Advantages:

• Lowest effective tax rate in the EU (5%)
• Fully-fledged EU member since 2004
• English legal system (common law)
• Moderate cost of living
• 300 sunny days per year
• Short flights to Germany (2.5 hours)

Plus, Malta is small and easy to navigate. You quickly get to know the right contacts.

The Lifestyle Factor: Where Do You Want to Live?

Tax optimization is about more than just numbers. It’s about your lifestyle.

Malta is a good fit if:

• You want to stay in Europe
• You appreciate the Mediterranean climate
• You prefer a manageable community
• You travel regularly to Germany

Dubai is better if:

• You do business in Asia
• You enjoy luxury and glamour
• You’re ready to relocate your center of life
• You’re fine with a 90-day annual residence

Malta Family Office Costs: Budget and Timeline for High-Net-Worth Individuals

Let’s talk numbers. What does a Malta Family Office really cost? I’ll give you practical figures—no hidden surprises.

Setup Costs: The Initial Investment

For setting up a Malta Family Office structure, you should budget as follows:

Sounds like a lot? See it as an investment. With €2 million in managed wealth, you save about €50,000 in taxes per year compared to Germany.

Ongoing Costs: What You Need to Budget Annually

A Family Office is not a set and forget investment. It needs professional management.

Annual Fixed Costs:

• MFSA License Fee: €1,165
• Company Secretarial: €2,400
• Director Services: €3,600
• Office Rental: €7,200
• Accounting & Tax Filing: €6,000
• Legal & Compliance: €4,800
• Banking Fees: €1,200

Total per year: €26,365

On top, you’ll have variable costs for investment management (typically 0.5–1% of managed assets).

Break-Even Analysis: When Does Malta Pay Off?

Let’s calculate. At what wealth level does a Malta structure make sense?

Sample calculation for a German entrepreneur:

The break-even point is around €1.2 million. Not by chance: this matches the MFSA minimum requirements.

Hidden Costs: What Others Don’t Tell You

But be careful. There are hidden costs that other service providers won’t mention:

• Substance Requirements: You need real presence (€3,000–€6,000/year)
• Travel Costs: Regular trips to Malta for board meetings
• Banking Relationship: Minimum deposits at Maltese banks
• Professional Indemnity Insurance: €2,500/year
• Audit Fees: €4,000–€6,000/year

So, you should realistically budget €35,000–€40,000 in total annual costs.

Financing Options: How to Optimize Setup Costs

€46,000 setup costs don’t need to be paid all at once. Here are my tips:

1. Phased implementation: Start with company formation
2. Finance via existing structures: Use existing companies
3. Service providers with payment plans: Many accept staggered payments
4. Plan for tax deductions: In Germany, you can deduct advisory costs

Another tip: You can realize your first tax benefits in the setup year.

Malta Tax Planning: Common Mistakes and How to Avoid Them

In 15 years of international tax consulting, I’ve seen many Malta structures. Some brilliant, some disastrous.

Here are the most common mistakes—and how to avoid them.

Mistake #1: Ignoring Substance Requirements

The most common mistake? Entrepreneurs think Malta is a mailbox location. That’s completely wrong.

What often goes wrong:

• No actual board meetings in Malta
• No local staff or office
• All decisions made in Germany
• No documented commercial activity

The result: The German tax office refuses to recognize Malta as place of business. Your entire tax plan is worthless.

How to do it right:

• At least 4 board meetings per year in Malta
• Local company secretary with real powers
• Documented business activities
• Maltese bank account with regular transactions

Mistake #2: Misunderstanding Tax Residency

This gets complicated. Many confuse company residency with personal tax residency.

The misconception: My company is in Malta, so I’m tax-free.

That’s not how it works. You personally remain taxable in Germany as long as your center of life is there.

The right strategy:

• Malta Family Office for asset management
• Optimize personal tax residency separately
• Observe CFC (Controlled Foreign Company) rules
• Clear separation between private and business activities

Mistake #3: Neglecting Banking Relationships

Malta is an EU member, but Maltese banks are still cautious with German clients.

Typical banking problems:

• Account opening takes 3–6 months
• High minimum deposits required
• Extensive due diligence processes
• Ongoing compliance requests

My solution:

1. Early banking: Open an account before license application
2. Relationship banking: Build personal relationships
3. Multiple banks: Don’t rely on just one bank
4. Clear documentation: Document all money flows

Recommended Maltese banks: Bank of Valletta, HSBC Malta, APS Bank.

Mistake #4: Underestimating the Compliance Framework

A Family Office is not a regular company. You’re subject to special compliance requirements.

What you need:

• Anti-money laundering (AML) procedures
• Know your customer (KYC) processes
• Risk management framework
• Client asset protection rules
• Regular compliance monitoring

It sounds like bureaucracy—and it is. But without a professional compliance framework you risk your license.

My recommendation: Invest in professional compliance software from the beginning. It costs €3,000–€5,000 per year but saves huge effort.

Mistake #5: Forgetting Your Exit Strategy

No one likes to think about the end. But what happens if you don’t need your Malta structure anymore?

Typical exit scenarios:

• Sale of the company
• Change of tax residency
• Simplification of the structure
• Regulatory changes

Plan your exit strategy from the start:

• Define clear liquidation procedures
• Prepare asset transfer mechanisms
• Assess the tax impact of exit
• Develop alternative structures as backup

Mistake #6: Getting Professional Advice Too Late

The most expensive mistake? DIY mentality with complex tax planning.

I often see entrepreneurs trying to set up Malta structures themselves. The result? Expensive corrections and missed optimization opportunities.

When you need professional help:

• During structure planning (before you start)
• During license application
• For tax optimization
• For ongoing compliance
• When regulations change

A good advisor costs money. A bad advisor costs a fortune.

Malta Family Office in Practice: Your Next Steps

You now have the knowledge. But how do you implement it? Here’s my practical road map for your Malta Family Office structure.

Phase 1: Feasibility Check (Week 1–2)

Before you spend a euro, check the basics:

1. Asset analysis: Do you have at least €1.2 million in assets to manage?
2. Tax status: What is your current tax burden?
3. Business model check: Does a Family Office fit your structure?
4. Lifestyle assessment: Are you ready for trips to Malta?

My quick check: If you can save more than €30,000 in taxes per year, a detailed check is worthwhile.

Phase 2: Professional Advice (Week 3–4)

Now you bring in the experts. But caution: Not every Malta expert is truly competent.

Choose advisors based on these criteria:

• At least 5 years of Malta experience
• Own presence in Malta (not just a German law firm)
• References from similar clients
• Transparent cost breakdown
• Realistic timelines

Important questions for your advisor:

• How many Malta Family Offices have you already set up?
• What substance requirements do you specifically recommend?
• How do you handle ongoing compliance?
• What are the biggest risks in my structure?

Phase 3: Structure Planning (Week 5–8)

Now you develop your customized structure. Standard solutions dont work—every case is unique.

Core planning elements:

• Holding structure: How do you organize your assets?
• Investment strategy: Which assets does the Family Office manage?
• Governance: Who makes which decisions?
• Succession planning: How do you handle succession and inheritance?

This phase takes 3–4 weeks. Don’t let anyone rush you.

Phase 4: License Application (Months 3–6)

The MFSA application is the most complex step. Here you’ll find out if your Family Office gets licensed.

Critical success factors:

1. Complete documentation: All paperwork complete and correct
2. Professional business plan: Shows genuine business activity
3. Compliance framework: Demonstrates professionalism
4. Financial projections: Realistic numbers

The MFSA checks thoroughly. Questions from the regulator are normal and show they take their job seriously.

Phase 5: Operational Start (Months 7–8)

License received? Congratulations! Now the real work begins.

Go-live checklist:

• ✓ Maltese bank account opened and functioning
• ✓ Office space secured (shared office is OK)
• ✓ Local company secretary appointed
• ✓ Compliance procedures implemented
• ✓ Asset transfer plan developed
• ✓ Tax ruling applied for
• ✓ First board meetings scheduled

Ongoing Operations: The First 12 Months

The first twelve months are crucial. This is where you prove to the MFSA that your Family Office operates professionally.

Quarterly milestones:

My Personal Tip: Visit Malta

Visit Malta before making your decision. Not as a tourist, but as a future business owner.

What you should check in Malta:

• Visit various office locations
• Talk to local service providers
• Arrange banking meetings
• Evaluate lifestyle and infrastructure
• Meet other German entrepreneurs

A single day on the ground can save you many surprises later on.

Ready for the next step?

Malta Family Office structures are complex but doable. With the right planning and professional support you’ll unlock one of the most attractive tax options in Europe.

The question isn’t whether Malta is interesting for high-net-worth individuals. The question is: are you ready to take the step?

Your RMS

Frequently Asked Questions

How long does it take to set up a Malta Family Office structure?

The complete setup takes 6–8 months. Company formation is quick (7–10 days), but the Family Office license takes 3–6 months. Tax ruling and banking applications run in parallel.

Do I have to move to Malta for the 5% tax rate?

No, you don’t have to move to Malta. The 5% effective tax rate applies to your Malta company, regardless of your personal tax residence. However, you must fulfill substance requirements (regular visits to Malta, local presence).

What’s the minimum investment for a Malta Family Office?

The MFSA requires at least €1.2 million in managed assets plus €125,000 in equity. In practice, I recommend €2+ million for economic viability.

Is Malta EU-compliant, or do I risk problems with German authorities?

Malta has been a full EU member since 2004. Tax rules are EU-compliant and protected by double taxation treaties with Germany. Important: You must have real substance in Malta.

How much does a Malta Family Office cost per year?

Budget €35,000–€40,000 in total annual costs for a professionally operated structure. Plus variable investment management costs (0.5–1% of managed assets).

Can I hold my German company via the Malta structure?

Yes, that’s possible and often advantageous. The Malta holding can own German companies and benefit from the EU Parent-Subsidiary Directive. The right structuring for substance requirements is essential.

Which banks work well with Malta Family Offices?

Recommended partners are Bank of Valletta, HSBC Malta, and APS Bank. Opening an account takes 3–6 months and requires extensive documentation. Plan for multiple banking relationships.

What if Maltese tax law changes?

Malta has kept its tax laws stable since joining the EU in 2004. When changes occur, there are usually grandfathering rules. A tax ruling also offers you five years’ legal certainty.

Do I need a local director in Malta?

Yes, you require at least one Maltese director. This can be a professional service provider and costs about €3,600 per year. The director must have real authority and hold board meetings in Malta.

How do I prove “substance” to Maltese authorities?

You prove substance by: local office (shared office is enough), Maltese company secretary, regular board meetings in Malta, local bank account with activity, documented business decisions in Malta.