Why Start an Investment Fund in Malta?

Updated on Tuesday 21st November 2017

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Malta is one of the best investment jurisdiction in which foreign businessmen can set up a fund. Traditionally speaking, Malta represents the top destination at a European level for setting up small seed funds or management companies. One of the main assets of this country in terms of investments refers to the small costs associated with the registration and operation of an investment fund. The country, a member state of the European Union, imposed an investment legislation compatible with the one available in the Community area, and thus, businessmen can benefit from similar provisions on how to start a fund in this country. 

Main benefits of the Maltese investment market 

The Maltese financial market is highly developed, offering a wide range of investment vehicles for various types of investors. Investors can benefit from numerous tax advantages, as the investment funds set up here are exempt from paying the corporate tax or the withholding tax on distributions deriving from investment activities
The procedure on how to start an investment fund in Malta is straightforward and the registration process can be completed in less than 3 months, a situation which is also available for management companies that are set up in order to manage the operations of the funds registered here. However, certain types of funds can be registered as self-managed structures, in which case, the management company is no longer required. 
Foreign businessmen who want to relocate to Malta for investment purposes can also benefit from a lower tax scheme applicable to the personal income, imposed at the rate of 15%. 

Investment regulations in Malta

Maltese funds, including the hedge fund startup, are regulated under specific rules of law. The statutory regulation for funds set up here is the Maltese Investment Services Act, imposed on the local market by the Malta Financial Services Authority (MFSA), the main regulator of the financial operations. Most of the local funds need to receive a license issued by the MFSA, which can be issued in a period of 4 to 6 weeks, once the MFSA has analyzed the documents submitted by the applicant. 
Our partners can provide further information on why Malta represents an attractive location for investment purposes. Please contact our team of affiliates in Malta for consultancy services on the Maltese investment market.