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Maltese Investment Funds

Maltese Investment Funds

Updated on Tuesday 19th April 2016

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Maltese-Investment-FundsInvestment funds and investment services fall under the regulations of the Investment Services Act in Malta. According to the Investment Services Act, investment funds are also called Collective Investment Schemes (CIS) and can take the legal forms of companies with variable share capital (SICAV), companies with fixed share capital (INVCO), limited partnerships, unit trusts and mutual funds in Malta. Investment companies and partnerships fall under the regulations of the Maltese Commercial Code, while unit trusts and mutual funds are regulated by the Trust and Trustee Act in the Civil Code.

Types of investment funds in Malta

Maltese laws provide various investment funds depending on the investors who may register retail and professional investor funds (PIF) in Malta. Maltese retail funds are available for registration to the general public, while professional investor funds target investors who must fulfill certain requirements before being accepted as investors.

According to the Maltese laws, investment funds may also be redomicilated to Malta. Professional investment funds in Malta are available as it follows:

  • - for experienced investors who will invest at least 10,000 euros,
  • - for qualifying investors interested in investing at least 75,000 euros,
  • - for extraordinary investors who will invest at least 750,000 euros.

Maltese retail funds are categorized into UCITS (undertaking for collective investment in transferable securities) and non-UCITS funds. UCITS funds may be established as unit trusts or open-ended investment companies in Malta. Licenses for non-UCITS funds are available for the local market. Non-UCITS funds may be registered as open-ended or closed-ended companies in Malta.

The taxation of investment funds in Malta

Maltese investment funds are sought because of the advantageous taxation system applied. The taxation of investment funds in Malta depends of the category the fund falls into and whether the investment fund is prescribed or non-prescribed.

Prescribed funds have at least 85% of the value of their assets registered in Malta. Maltese prescribed funds are taxed with a 15% rate on bank interests, a 10% final withholding tax on interest for Maltese public companies and the capital gains tax on incomes derived from immovable property in Malta. Non-prescribed funds are exempt from taxation in Malta, unless they earn any income from immovable property in Malta.

If you want to register an investment fund, you can contact our lawyers in Malta for assistance or for trustee services.

 

Comments

  • Abu Arman 2015-06-05

    Dear Sir I want to know about opening a Private Equity & Venture Capital Firm In Malta. 1. How can I form a Maltese Private Equity & Venture Capital Firm? 2. How much tax are incurred on profit? 3. How is the banking system in Malta? 4. Can investors buy private banking licence ? 5. Give me a brief idea how your company can help me to open a Private Equity Firm in Malta? Please response as early as possible. Regards Arman

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