Malta, an EU member state since 2004, has continuously sought to attract foreign investments in order to enhance its economy. Malta provides numerous investment incentives to foreign businessmen that include a citizenship scheme and many tax reductions. Other advantages the Malta provides to investors are the highly-educated and skilled labor force, the modern infrastructure and telecommunication systems. Malta Enterprise is the governmental organization in charge with the promotion of foreign direct investments. However, the country also offers other investment vehicles, such as hedge funds.
Malta has a comprehensive legislation for the registration and licensing of collection investment schemes (CIS). Investors also have a variety of investment schemes they can choose from. Among these, professional investor funds (PIFs) that are designed for investors requiring a certain degree of expertise and certain amounts of money and alternative investment funds (AIFs) and UCITS (Undertaking for Collective Investment in Transferable Securities) funds that fall under the regulations of EU Directives. Investors have the possibility to register unit trusts or open-ended or closed-ended investment companies in Malta.
Maltese collective investment schemes with 10% or more of their assets made up of real estate investment, property management or property financing companies are regulated by the Property Funds Policy with the Malta Financial Services Authority. The Property Funds Policy establishes the regulations for investment funds investing in immovable property or real estate property in Malta.
Real estate investment funds usually target non-resident investors. Funds investing in property management or property financing companies in Malta target retail investors. These types of funds may invest in shares or bonds issued by property management of property financing companies in Malta.
Property management companies usually provide services for real estate owners in Malta, while property financing companies provide intermediary services to borrowers involved in property development.
For details about licenses for investment funds, you can rely on our Maltese law firm. You can also contact us for details about the available collective investment schemes.
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