Malta's Light-Touch Regulatory Framework Positions Country as Prime Family Office Destination

Malta has emerged as an increasingly attractive jurisdiction for single family offices following recent refinements to its regulatory framework by the Malta Financial Services Authority (MFSA). This is according to industry experts at a Malta Business Network event in November.

The regulatory regime was updated to reflect the critical juncture we find ourselves in with tens of trillions of euros expected to transfer between generations over the next two decades. Against this backdrop, family offices are gaining prominence as essential vehicles for preserving, growing and transitioning wealth across generations through sophisticated legacy management strategies.

Malta has developed what experts describe as a "fit-for-purpose, light-touch" regulatory framework specifically tailored to single family office needs. The regime builds on existing rules for private trust companies and Notified Professional Investor Funds, requiring a minimum €5 million investment and aggregate family wealth of €50 million.

Gerd Sapiano, Deputy Head within the Strategy, Policy and Innovation function at the MFSA, emphasised that the framework provides regulation that is "strong where it needs to be, and agile where it makes sense," enabling families to centralise governance, investment management and succession planning in Malta with clarity and speed.

The framework also allows key employees of family offices to be recognised as beneficiaries of the family trust—a feature available in the US and now accessible in Malta—helping families retain talent while aligning employee interests without disqualifying from the light-touch framework.

Joseph Zammit Tabona of the Malta Financial Services Advisory Council highlighted that family offices were identified early in Malta's financial services reform programme as a sector with strong growth potential. The Malta family office proposition, he said, reflects the island's commitment to cultivating high-value, high-governance niches that align with global trends while strengthening Malta's competitiveness as a European wealth management hub.

Malta's unique legal system—combining civil law foundations with common law influences—further enhances its appeal as a leading hub for family offices and private wealth.