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Types of Collective Investment Schemes in Malta

Types of Collective Investment Schemes in Malta

Updated on Saturday 18th June 2016

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Types-of-collective-investment-schemes-in-MaltaAll collective investment schemes (CISs) in Malta fall under the Investment Services Act comprised in the Civil Law. The Maltese legislation categorizes CISs into:

  • -          retail collective investment schemes, which can be divided into undertakings for collective investment in transferable securities (UCITS) and non-UCITS funds;
  • -          professional investor funds (PIFs) dedicated to qualified and experienced investors;
  • -          private collective investment schemes which benefit from licensing exemptions with the Malta Financial Services Authority (MFSA).

Another type of collective investment fund recognized by Malta under the Special Funds Act is the retirement fund.

How to register collective investment schemes in Malta

All types of Maltese collective investment schemes must obtain a license with the MFSA and then be incorporated under one of the structures allowed by the Company Law. The following types of business forms are available for registering investment funds in Malta:

  • -          investment companies with variable share capital (SICAV);
  • -          investment companies with fixed share capital (INVCO);
  • -          incorporated cell companies (ICC);
  • -          recognized incorporated cell companies (RICC);
  • -          limited partnerships;
  • -          unit trusts;
  • -          common contractual funds.

The SICAV company can also be registered as a multi-class entity which allows the company to divide its shares into different class under one fund, or as a multi-fund or umbrella company which allows the business to divide its shares into classes under multiple funds.

Our lawyers in Malta can assist you in registering a company for any type of collective investment fund.

Taxation of Maltese collective investment funds

All types of collective investment schemes in Malta are subject to the same taxation criteria: at fund or at investor level. The taxation of the fund depends on whether it is prescribed or non-prescribed. Prescribed schemes will be imposed a 15% withholding tax on interest and 10% on other income, while non-prescribed funds are exempt from taxation in Malta. Income from immovable property will be subject to the corporate tax for both types of collective investment schemes.

Taxation at investor level implies a 15% withholding tax on any distribution for Maltese resident investors. Non-resident investors will benefit from capital tax exemptions in Malta.

For more information on investment funds, please contact our Maltese law firm.

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