Malta Strengthens Position in Asset and Wealth Management Sector

The Malta Financial Services Advisory Council (MFSAC) strategy, launched in March 2023, has reached approximately  66% completion as of October 2025, marking significant progress in the overhaul of Malta's financial services sector. 

In particular, the country has delivered significant reforms designed to strengthen its position as a competitive hub for asset and wealth management, with the MFSAC announcing progress across multiple strategic initiatives. 

The jurisdiction completed crucial legislative changes in February 2025 with the publication of legal notices on limited partnerships, providing fund operators with greater structural flexibility. Discussions are now underway to introduce tax transparent treatment for Maltese funds under the Income Tax Act, addressing long-standing calls from industry for enhanced clarity. 

Real estate investment is set for a major boost, with the MFSAC Tax Working Group agreeing on fiscal incentives for REITs. The proposals are being finalised ahead of final recommendations, marking a strategic move to attract specialised investment vehicles to the jurisdiction. 

Malta mounted an international campaign to attract family offices throughout 2025, with FinanceMalta rolling out new marketing materials and hosting promotional events across key financial centres including Switzerland, London, and Riyadh. The regulatory framework secured approval from both the Malta Financial Services Authority (MFSA) and Financial Intelligence Analysis Unit (FIAU), providing the certainty that ultra-high-net-worth families demand. 

The family office framework, which emerged from MFSAC proposals, has been welcomed by industry practitioners. Experts have described the regime as “fit-for-purpose” and “light-touch”, with Gerd Sapiano, Deputy Head within the Strategy, Policy and Innovation function at the MFSA, emphasising that it is “strong where it needs to be, and agile where it makes sense.” The framework requires a minimum €5 million investment and minimum aggregate family wealth of €50 million, whilst allowing key employees of the single-family office to be recognised as beneficiaries in certain instances, a feature previously available only in jurisdictions like the United States. 

The MFSA is also examining a De Minimis AIFM framework aimed at smaller fund managers, which would reduce operational costs and regulatory burden whilst maintaining robust oversight. 

The reforms represent a coordinated response to feedback from industry participants who had identified regulatory complexity and protracted approval times as barriers to growth. By streamlining compliance processes and reducing administrative burdens, Malta aims to significantly improve ease of doing business for wealth and asset management firms. 

This is the first part in our series focused on the MFSAC interim report. Each week, we will be doing a deep dive on a different sector and the progress made since MFSAC introduced the Financial Services Strategy in 2023.