Posts Tagged ‘Malta’

Vacancy: Property Negotiators Wanted

February 11, 2014

negotiator

77 Great Estates’ Sliema branch situated at 213, Tower Road, Sliema, Malta (EU) is presently recruiting property negotiators.

77 Great Estates’ property portfolio consists of luxury residences and high street commercial properties for sale and to let. The job will entail the inspection of such properties in Malta and the negotation and conclusion of property deals for and on behalf of our international clients.

The ideal candidate should have a good grasp of English and knowledge of other languages will be considered as an asset.  He/she must be computer literate.

A professional training course will be offered by 77 Great Estates in addition to support from our dedicated staff and qualified leads.

77 Great Estates’ mission is to succeed through hard work, determination, efficiency, effectiveness and honesty. We offer an attractive commission rate together with benefits including use of company mobile and company car – terms and conditions apply.

To apply, kindly forward your CV via email on carl@77GreatEstates.com.

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Trusts – Article by Hugh Peralta & Associates – Advocates

August 7, 2009

Malta has a fully-fledged trust legislation, even though Malta’s legal tradition has been predominantly of a civil law nature. Trusts are regulated by the Trusts and Trustees Act which enables both residents and non-residents to set up various types of trusts in Malta. Maltese trust legislation places great responsibility on trustees resident or operating in Malta. An individual or a corporate entity acting as a professional trustee and which is resident or operating in Malta, must be approved and licensed by the Malta Financial Services Authority.

 This licensing requirement means that licensed trustees have a high degree of responsibility especially in ensuring that trusts under their administration are fully compliant with the law, including all disclosure requirements in terms of anti- money laundering laws. Due to this approach, Maltese trusts are not registered in a centralised trust register. The great onus placed on trustees emanates also from the fact that trustees must not only act with diligence and attention but must act with the utmost good faith.

 What is a trust?

 A trust is a legal relationship created by a person, the settlor, who places assets under the control of a trustee, who undertakes an obligation to administer that property for the benefit of a beneficiary/ies or for a particular purpose.

 Trust assets are offered protection by law as the property held in trust constitutes a separate patrimony from the assets of the trustee, ascertaining that the personal creditors of the trustee shall have no recourse against the trust property.  Furthermore, the property of a particular trust is also segregate from property of another trust held by the same trustee. Importantly, the trust property shall not form part of the trustee’s personal estate upon his insolvency or bankruptcy and the trust property shall not form part of the matrimonial property of the trustee or his spouse nor part of the trustee’s estate upon his death.

 Formation of trusts

 In terms of Maltese law, a trust can come into existence in any manner.  However, a unit trust must be set up in writing. However it is always recommendable to have a written trust deed or declaration so that this clearly delineates the parameters of the trust and the functions and discretions of the trustee. A trust shall continue until the 100th anniversary of the date of its creation and unless already terminated shall terminate then.  This limit does not apply to trusts set up for charitable purposes or unit trusts.

 Under Maltese law, the beneficiary or beneficiaries must be identifiable by name or ascertainable by reference to a class or to a relationship to some person.  The settlor of a trust may also be a beneficiary under the trust. A trustee is normally precluded from being a beneficiary of a trust apart from specific trusts utilised in a financial services context and known as commercial trusts.  A trustee may benefit under a trust where he is not the sole trustee and in those cases where he is, he may still benefit if he has prior approval of the MFSA or the court.

 Maltese law also provides for the possibility of having a protector in a trust relationship. Such a protector is designated by the settlor so as to supervise the operation of the trustees in terms of the trust deed.

 Applicable law

 The terms of the trust may identity the law applicable to the trust. Furthermore through the adoption of the Hague Convention on the Law Applicable to Trusts and on their Recognition, Malta recognises trusts having a foreign proper law.

 Where the proper law of a trust is foreign law, the validity of the trust, its construction, its effects and the administration of the trust shall be governed  by such foreign law and shall be recognized and given effect to in Malta in accordance with the Hague Convention on the law applicable to trusts and on their recognition.

 Types of trusts

 There are three types of trusts, namely, an express trust, an implied trust and a constructive trust.

 An express trust is one in which the intention of the settlor to create the trust relationship is clearly and openly expressed.  

An implied trust arises from the unexpressed but presumed intention.  A constructive trust arises by operation of law and is not dependent on the intention of the settlor. 

 Trusts can be tailor-made for a number of uses. Trusts may be used for such purposes as asset protection, wealth management, investment purposes, to provide a life annuity for a surviving spouse or a child with special needs. Maltese law allows such a flexible use of the trust concept and details out specific safeguards to ensure the protection of settlers, beneficiaries and the trust property.

 Commercial trust

 The trust legislation also envisages the use of trusts for commercial purposes or commercial transactions. The law identifies a number of scenarios qualifying as commercial transactions such as the use of trusts for:

  • Collective Investment Schemes,
  • Securitisation of assets,
  • Granting of real or personal security,  
  • Securities offerings, whether to the public or for private placement,  
  • Portfolio management,  
  • Custody of investment instruments, 
  • Syndicated loan agreements and other multi-creditor banking facilities; and  
  • Insurance policies and the payment of proceeds thereunder.

 Commercial trusts are afforded a greater flexibility than normal trusts, making these a suitable tool in the financial industry.

 Taxation

 Trusts are considered to be transparent for tax purposes if the income of the trust is distributed to the beneficiaries.  In that case the income of the trust is not charged to tax in the hands of the trustee but is taxed in the hands of the beneficiaries.  Where all the beneficiaries of a trust are not resident in Malta and where all the income attributable to the trust does not arise in Malta, there is no tax impact in terms of Maltese law.  Income attributable to a trust which is not distributed to the beneficiaries is taxed in the hands of the trustees at a rate of 35%.

 How we can help

 Peralta Custodian Limited is the service company within Hugh Peralta & Associates Advocates, which is licensed by the Malta Financial Services Authority to act as a trustee.  Apart from offering Professional Trustee services, we may also help you with any matters related to trusts, including trust advice, drafting of the trust deeds and ancillary documentation such as the letter of wishes, and the setting up of the trust.

 Disclaimer: These notes are intended only as initial general information. They reflect our views and not necessarily those of any court, authority or government. They are not exhaustive, and further advice should be sought for each particular situation before any decisions are taken.

For further information, kindly contact 77 Great Estates on (00356) 2125 2455; (00356) 9944 7444; skype: info.77greatestates or info@77GreatEstates.com.