.png)
Key Issues
- Personal versus corporate ownership of immovable property in Malta
- Use of property holding companies as part of wealth and asset structuring
- Asset protection and risk management considerations
- Succession and inter-generational planning implications
- Differences depending on property type and intended use
Property Ownership in Malta: Personal or Corporate
Maltese law permits immovable property to be held either directly by individuals or indirectly through companies or other entities/arrangements. Each method of ownership has different legal, practical, and planning implications.
Personal ownership is often simpler at the transactional stage. Corporate ownership, by contrast, introduces an additional layer between the individual and the property, shifting ownership to the entity while the individual holds shares or interests in that entity. For many private clients, this distinction becomes relevant not at the point of purchase, but when considering risk exposure, succession, and long-term asset organisation.
What Is a Property Holding Company
A property holding company is typically a non-trading entity established to own real estate as an asset, rather than to carry on property development or active commercial operations. The company may hold a single property or a portfolio of properties, whether residential or investment-oriented.
From a structuring perspective, the company serves as an asset-owning vehicle, allowing property to be integrated into broader wealth or family structures. This approach is commonly explored by clients who view real estate as part of a diversified asset base rather than as a standalone purchase.
Why Corporate Ownership Is Considered by Private Clients
The decision to hold property through a company is usually driven by planning considerations, rather than transactional convenience.
Corporate ownership may be considered in order to:
- Separate property ownership from personal exposure
- Centralise ownership of assets held in different jurisdictions
- Facilitate continuity of ownership across generations
- Align real estate holdings with wider wealth or family structures
For HNWIs and family offices, property is often one component of a broader asset mix. Corporate ownership can therefore offer a framework within which real estate is managed alongside other investments.
Asset Protection Considerations
One of the reasons property holding companies are considered is the legal separation they create between the property and the individual. Where property is held personally, it forms part of the individual’s personal estate. Where held through a company, the property belongs to the entity.
For clients with business interests, professional exposure, or complex family circumstances, this separation may be relevant when considering risk containment. In more sophisticated arrangements, property holding companies may form part of a wider asset structuring strategy designed to ring-fence different categories of assets.
It is important to note that asset protection outcomes depend on overall structure and governance, not merely on the existence of a company.
Succession and Estate Planning Implications
Property ownership also raises succession considerations, particularly for families with assets and members across multiple jurisdictions.
Where property is held through a company, succession planning may focus on the transfer of shares or interests, rather than the direct transfer of immovable property. This can simplify planning and support continuity, especially where families wish to avoid fragmentation of ownership or disruption to long-term arrangements.
Property holding companies are often used alongside wills, trusts, or other estate planning tools, depending on the client’s objectives and personal circumstances.
Tax and Cost Considerations: A High-Level View
Tax and cost implications are an integral part of any structuring discussion, but they are highly dependent on individual facts, including:
- The nature of the property
- Whether it is held for personal use or investment
- Whether the structure is implemented at acquisition or by subsequent transfer
Detailed analysis is required before determining whether personal or corporate ownership is more appropriate in a given case.
Illustrative Example: Residential Property Held Through a Company
A family acquiring a residential property in Malta for personal use may choose to hold the property through a Maltese company rather than in their own names.
In such a structure, the company acquires and owns the property, while family members hold shares in the company. Over time, this allows ownership interests to be managed, transferred, or integrated into wider family arrangements without altering the property title itself.
This type of structure is typically considered in the context of long-term planning, rather than short-term transactional benefits, and its suitability depends on the family’s wider circumstances.
Existing Property and Restructuring
Property holding companies are not only relevant at the point of acquisition. Clients who already own property in Malta may later consider restructuring ownership through an entity as part of a broader reorganisation of assets.
Such restructuring requires careful analysis, as the implications of transferring property to a company can differ significantly from acquiring property through a company from the outset.
Who This Is Relevant For
Property holding companies in Malta are most commonly considered by:
- High-net-worth individuals acquiring or holding Maltese real estate
- International families with cross-border succession considerations
- Family offices managing diversified asset portfolios
- Advisors assisting clients with long-term wealth structuring
What This Means for You
The choice between personal and corporate property ownership in Malta is not a purely technical one. It requires balancing legal, tax, and planning considerations in light of personal and family objectives.
This publication outlines the structural considerations involved, but the appropriate solution will always depend on individual circumstances and should be assessed with professional advice.
How Andersen Malta Can Assist
Andersen Malta advises private clients, families, and international advisors on the structuring and restructuring of property ownership, including the use of corporate vehicles as part of wider wealth and asset planning strategies. Our role is to help clients assess options, understand implications, and implement structures aligned with long-term objectives.
