Table overview of essential facts and requirements for setting up investor funds / hedge funds in the low tax EU jurisdiction of Malta. * Collective Investment Schemes | Hedge Fund | Mutual Fund | AIFMD | PIFs | Alternative Investment Schemes

1. Malta - Comparison of Investment |Hedge | Mutual |UCITS |Funds
Type of PIF
Experienced Investor Fund
Qualifying Investor Fund
Extraordinary Investor
€10,000 / $10,000
€75,000 / $75,000
€750,000 / $750,000
Yes
No
No
Eligibility for Investors
Satisfy definition of
experienced investor
Satisfy definition of
qualifying investor
Satisfy definition of
extraordinary investor
Investment Restrictions
Certain rules apply to property funds
None
- except as specified in
offering documentation
None
- except as specified in
offering documentation
100% NAV for borrowings used for investment purposes & leverage via derivatives. Assessed on VaR (value at risk)
or Commitment Approach.
Unrestricted borrowing on temporary
basis for liquidity purposes.
None
- except as specified in
offering documentation
None
- except as specified in
offering documentation
7 business days
7 business days
7 business days
Offering Memorandum
Minimum Requirements
Minimum Requirements
Optional
Financial Statements /
Reporting
Annual
To be submitted with
Custodian’s report
Annual
No Custodian’s report
required
Annual
No Custodian’s report
required
Compliance Report
Semi—Annual
Semi—Annual
Semi—Annual
Statistical Returns
Quarterly
Quarterly
Quarterly
Investment Manager
Optional
- depend on competence
- self managed PIFs allowed
- can act as administrator
Optional
- depend on competence
- self managed PIFs allowed
- can act as administrator
Optional
- depend on competence
- self managed PIFs allowed
- can act as administrator
Investment Advisor
Optional
Optional
Optional
Administrator
Optional
Optional
Optional
Required
Can also act as MLRO
Required
Can also act as MLRO
Required
Can also act as MLRO
Required if PIF marketing own units
Required if PIF marketing own units
Required if PIF marketing own units
Required
- assumes monitoring role
- need not be in Malta
- must be independent from fund
manager
Optional
- to implement safe custody
arrangements
- must be independent from fund
manager
Optional
- to implement safe custody
arrangements
- must be independent from fund
manager
Yes if all officials & service providers
outside of Malta
Yes if all officials & service providers
outside of Malta
Yes if all officials & service providers
outside of Malta
Independent Director
from Manager /Custodian
Required
Required
Required
Self Managed Funds
Allowed
Allowed
Allowed
Auditor
Required
Required
Required
Listing
Optional
Optional
Optional
Investor to declare qualifies as
Experienced Investor
Investor to declare qualifies as
Qualifying Investor
Investor to declare qualifies as
Extraordinary Investor
No Malta Tax
No Malta Tax
No Malta Tax
No Capital Gains
for Non Residents
No Withholding Tax
on Distributions
No Capital Gains
for Non Residents
No Withholding Tax
on Distributions
No Capital Gains
for Non Residents
No Withholding Tax
on Distributions
Not Required
Not Required
Not Required
Pledge of Units
Allowed
Allowed
Allowed
Side Pockets
Allowed
Allowed
Allowed
Minimum Investment
Investment Limits
Borrowing Limits
Time for MFSA Response
Compliance Officer
MLRO (Money Laundering
Officer)
Custodian /
Depository
Local Representative
Declaration
Taxation - Fund
Taxation - Investors
Promoter Requirement

2. Malta - A Legitimate Low Tax EU Jurisdiction
100% EU & OECD Compliant
Collective Investment Schemes
Hedge Funds - Professional Investor Funds—UCITS
Maltese law uses the term ‘Collective Investment Schemes’ for all forms of investment funds - including hedge funds, retail or
non-retail, as well as UCITS and non-UCITS funds.
Multi Fund & Multi Class CISs
A CIS may be established as a Multi-Fund CIS, meaning that it is capable of being divided into different classes of shares and a
class or group of classes of shares constitute a distinct Sub-Fund of the CIS. A Sub-Fund may be allocated with assets and liabilities distinct from other assets and liabilities of the other Sub-Funds in the CIS.
A Multi-fund CIS may create or issue new classes of shares constituting a new Sub-Fund—each Sub-Fund (class of shares) may
be denominated in a different currency.
A CIS can be a Multi-Class CIS if its share capital can be divided into different classes of shares, whilst not constituting in and of
itself a Sub-Fund. Each class of shares may be denominated in a different currency.
Multi-Class CIS’s cannot elect to segregate any of its assets or liabilities.
Available Legal Structures
Legal Form
UCITS
Retail Non –UCITS
PIFs
Open - ended Investment Companies
(SICAV) (Most Popular)
Y
Y
Y
Close-ended Investment Companies
(INVCO)
N
Y
Y
Unit Trusts
Y
Y
Y
Limited Partnerships
Y
Y
Y
Contractual Funds
Y
Y
Y
Eligibility of Investors
Experienced Investor
Qualifying Investors
Extraordinary Investors
Person having at least 1 year of relevant
work experience in financial sector, or
person active in such types of
investments.
Person or entity has net assets in excess of
Euro / Dollar 750,000.
If PIF is structured as trust, amount
applied to net value of trust’s assets.
Condition met alone or jointly with
spouse.
Person or entity has net assets in excess
of Euro / Dollar 750,000.
If PIF is structured as trust, amount
applied to net value of trust’s assets.
Condition met alone or jointly with
spouse.
Reasonable experience in acquisition or
disposal of funds / instruments with
similar risk profiles as proposed PIF
Reasonable experience in investment
decisions on funds with similar risk
profile / instruments of proposed PIF
Senior employee or director to service
providers of PIF
Has frequently carried out investment
transactions of significant size
Senior employee or director to service
providers of PIF
Investor is PIF promoted to
extraordinary investors
Relation or close friend of promoters
limited to 10 persons per PIF
Body corporate or partnership wholly
owned by persons or entities meeting
these criteria, where used as
investment vehicle by the corporate or
partnership
Any other appropriate justification
Entity with minimum of Euro 3.75 million
under discretionary management
investing on its own account
Investor is PIF promoted to qualifying or
extraordinary investors
Body corporate or partnership wholly
owned by persons or entities meeting
these criteria, where used as investment
vehicle by the corporate or partnership

3. Malta’s International Legal & Advisory Firm
Licensable Activities
Investment funds must have a license from the Malta Financial Standards Authority (MFSA),
before (i) units can be issued or created, or (ii) activities can be carried out in or from within Malta.
Exempt Activities
The following activities do not require licenses:

Funds involving participants carrying on a business that does not constitute an investment serve and enters into the
arrangement for commercial purposes related to that business.

Funds which operate under the principle of risk spreading, where the contributions of the participants, profits or income
from payments are to be made are pooled, provided the general purpose of the scheme is commercial and not for investment purposes

Schemes operated by a company or its group of companies for its employees (past and present, as well as dependents),
in instruments issued by the company/group and any other instruments as approved by the MFSA.
Private Funds
A separate licensing regime applies to private funds where they are subject to a ‘recognition’ as opposed to the full licensing
regime. A private fund must have the following features:

Total number of participants are limited to 15

Fund does not qualify as a professional investor fund (meaning a non-retail fund)

Fund is private in nature.
European Union Passporting
UCITS fund units can be freely marketed or promoted within the EU by virtue of the Passporting arrangements under UCITIS IV
Directive.
Fees
Malta has one of the lowest levied fees in comparison to other states in the European Union and the traditional offshore
jurisdictions such as the Cayman Islands.
Scheme
Application for Preliminary Indication
Sub-Fund
€600
of acceptability of PIF
(irrespective of number of Sub-funds)
Application for PIF Licence
Annual Supervisory Fee
€1,500
€1,500
€1,000 per Sub-fund
€500 per Sub-fund
Malta Taxation of Funds
Prescribed - 85% of assets located in Malta
Fund
Non - Prescribed - 15% of assets outside of
Malta & Overseas UCITS
15% - Bank Interest
10% - certain investment income
35% - Malta real estate income
0% - all other income
0% tax on income or gains
(Malta real estate income taxed)
Non-Resident Investors
No tax if withheld at source. Can opt not to have
any source deductions.
0% on distribution
Resident Investors
No tax if withheld at source or deducted in line
with personal circumstances.
15% on distribution
Acumum - Legal & Advisory
‘Uniquely local - Uniquely International’
Located in the EU tax efficient jurisdiction of Malta, Acumum Legal & Advisory employs Maltese, UK, & international lawyers &
tax accountants - with extensive on-location & off-shore international experience - providing appropriate, bespoke solutions.
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Dubai, Luxembourg & Portugal Representative Offices
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Malta Office: +356 2778 1700
260 Triq San Albert, Gzira, GZR 1150, Malta (EU)
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4. Malta’s Highly Qualified Earners Scheme
15% flat rate income tax rate for senior employees within the
financial services sector
For individuals working in the financial
services industry, in addition to the
‘one stop shop’ approach of the Malta
Financial Services Authority (MFSA) and
the flexible regulations detailed above,
Malta has enacted a low, flat rate of
15%.
Malta’s International Legal & Advisory Firm
Index. €78,207 for basis year 2012 and
€80,100 for 2013
“Eligible office” is employment in one
of the following positions:
As such, Malta authorities have created
a scheme to attract highly qualified
persons who occupy as “eligible office”
with companies licensed and/or recognized by either the Malta Financial Services Authority (MFSA).
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Malta wants to attract high income
individuals and why not?
The 15% flat rate is imposed up to a
maximum income of €5 million - any
Positioning itself as a premier financial excess is exempt from tax. The 15% tax
and commercial district, Malta employs rate applies for a consecutive period of
five years for EU, EEA and Swiss nationan attractive low tax regime for busials and for a consecutive period of four
nesses. On a personal front, with its
years for third country nationals.
Mediterranean climate and lifestyle,
there are numerous options and levels
in Malta for accommodation, entertain- EU. EEA and Swiss individuals who already have a qualifying contract of emment and schools.
ployment in an “eligible office” for two
Individual income from a qualifying
years (or one year for 3rd party nationcontract of employment in an “eligible als) before 2008 may still benefit from
office” with a company licensed and/or
the 15% tax rate for the remaining
recognised by the Competent Authority
is subject to tax at a flat rate of 15% on years of the statutory period.
an income of at least €76,136 adjusted
annually in line with the Retail Price
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Actuarial Professional
Chief Executive Officer
Chief Financial Officer
Chief Commercial Officer
Chief Insurance Technical Officer
Chief Investment Officer
Chief Operations Officer
Chief Risk Officer (including Fraud
and Investigations Officer)
Chief Technology Officer
Chief Underwriting Officer
Head of Investor Relations
Head of Marketing (including Head
of Distribution Channels)
Head of Research and Development; (including Search Engine
Optimisation and Systems Architecture)
Portfolio Manager
Senior Analyst (including Structuring Professional)
Senior Trader/Trader
Odds Compiler Specialist
Acumum - Legal & Advisory
‘Uniquely local - Uniquely International’
Located in the EU tax efficient jurisdiction of Malta, Acumum Legal & Advisory employs Maltese, UK, & international lawyers &
tax accountants - with extensive on-location & off-shore international experience - providing appropriate, bespoke solutions.
Taxation
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Financial Services Licenses
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Insurance Licenses
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Trusts & Foundations
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Telco, Tech, Media
Estate & Wealth Management
Arbitration & Litigation
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Divisions
Compliance
Accounting, Tax & Back Office
Excellence| Superb Client Service| Cost Efficient
Outsourcing
Dubai, Luxembourg & Portugal Representative Offices
info@acumum.com | www.acumum.com | Skype ID: acumum
Malta Office: +356 2778 1700
260 Triq San Albert, Gzira, GZR 1150, Malta (EU)
Information for guidance purposes only
© Acumum 2014
All Rights Reserved