Malta Investment Funds Guide: PIFs in 2026

For asset managers and promoters looking to domicile a fund in a reputable EU jurisdiction, Malta remains a premier choice. Selecting the right structure is the difference between a streamlined launch and a regulatory costly bottleneck. If target investors are a family offices, high-net-worth individuals, professional or institutional investors, the Professional Investor Fund (PIF) offers the perfect balance of flexibility, prestige and affordability.

Understanding Investment Funds Regulations in Malta

The regulatory framework governing investment funds in Malta is designed to ensure investors' protection and market integrity. The Malta Financial Services Authority (MFSA) is the primary regulatory body overseeing the sector. It ensures compliance with the Investment Services Act and related subsidiary legislation, which set out the requirements for fund establishment, management, and operation.

Investment funds in Malta are subject to a tiered regulatory approach, depending on their structure and target investors. This approach balances the need for investor protection with the flexibility required by different types of funds. For example, retail funds face stricter rules compared to professional investment funds, reflecting the varying risk profiles and investor sophistication.

Key regulatory requirements include:

• Licensing and authorisation: Fund managers and/or funds must obtain appropriate licences from the MFSA.

• Capital requirements: Minimum capital thresholds apply, varying by fund type.

• Disclosure and reporting: Funds must provide regular reports to investors and the regulator.

• Governance standards: Clear rules on fund governance, including the appointment of board with an independent director, compliance officer, a portfolio manager, investment committee and in cases of AIFs and UCITS also a risk manager.

  
  

These regulations ensure that Malta remains a credible and competitive jurisdiction for investment funds, while safeguarding investor interests.

Malta financial services building

Types of Investment Funds Available in Malta

Malta offers a diverse range of investment fund structures tailored to different investor needs and strategies. Understanding these options is crucial for businesses considering fund establishment or investment.

1. PIFs

   PIFs are designed for the so called Qualified investors which are sophisticated investors who meet certain criteria, such as minimum investment thresholds. These funds benefit from a lighter regulatory regime, allowing for greater flexibility in investment strategies. PIFs can be structured as open-ended or closed-ended funds and are used by a variety of funds' strategies, including hedge funds, private equity funds, venture funds and property funds.

   
   

2. UCITS

   UCITS funds are highly regulated investment funds that can be marketed to the general public across the European Union. Malta’s UCITS framework complies with EU directives, making these funds suitable for retail investors seeking diversified portfolios with high regulatory standards.

   
   

3. AIFs

   AIFs encompass a broad category of funds that do not fall under UCITS, including hedge funds, private equity, and real estate funds. Malta’s AIF regime aligns with the EU Alternative Investment Fund Managers Directive (AIFMD), ensuring harmonised regulation and investor protection.

   
   

4. PPFs

   PPFs are closed-ended funds targeting a limited number of professional investors. They offer maximum flexibility and are exempt from certain regulatory obligations, provided they comply with specific conditions. These however lack certain tax advantages which the other 3 type of investment funds have.

   
   

For AIFs and PIFs, notified funds are also available, and each fund type has distinct advantages and regulatory obligations. Selecting the appropriate structure depends on a number of factors, including: target investor base, investment strategy, and desired level of regulatory oversight.

Financial analysis in a Maltese investment firm

Practical Steps to Establish an Investment Fund in Malta

Setting up an investment fund in Malta involves several key steps, each requiring careful planning and compliance with regulatory requirements. Here is a practical guide to the process:

1. Define the Fund Strategy

   Determine the type of fund that best suits your investment objectives and target investors. Consider factors such as fund size, investment horizon, underlying investements, target investors, risk profile, costs and level of support you required.

   
   

2. Engage Professional Consultants

   Collaborate with experienced and specialise people since their guidance is essential for navigating the licensing process and ensuring compliance. Avoid professionals who do not offer an end-to-end solution to your needs and look for those with an overall knowledge in structuring and also operating funds.

   
   

3. Optimise Tax & Structuring

   Optimisation of tax for the fund manager, investors and other interested parties can be a determinant factor for choosing a fund structure in Malta. Structuring can also involve the use of Malta or international Securitiations, Foundations, Trusts or other structures for shareholders, investors or underlying investments these addressing the various structuring needs.

   
   

4. Prepare the Documentation

   Provide feedback to your selected consultants in the development of the fund’s constitutional documents, including the prospectus, offering memorandum, and management agreements. These documents must clearly outline the fund’s objectives, fees, risk factors, and governance arrangements.

   
   

5. Relationships with Banks & Brokers  

   The opening of banks and/or brokers accounts and the establishment of relationships with other services providers is crucial for the Regulatory application and subsequent smooth running of the fund.

   
   

6. Apply for Regulatory Approval

   Your consultant will submit the application to the MFSA, including all required documentation and evidence of compliance with capital and governance requirements. The approval process typically takes 2-4 months, this also depending on the complexity of the fund.

   
   

7. Launch and Market the Fund

   Once authorised, the fund can be marketed, as appropiate, to the intended investor base. Ensure ongoing compliance with reporting and disclosure obligations to maintain regulatory standing.

   
   

By following these steps, businesses can establish investment funds that are well-positioned to attract investors and operate efficiently within Malta’s regulatory framework.

The 2026 Malta Fund Landscape

For asset managers and promoters, Malta remains the EU’s most flexible hub, however choosing a non-optimised structure can lead to tax drag, regulatory issues, delays, additional costs and/or having a fund which is not appealing to investors.

A PIF as an Optimal Choice in Most Cases

Unlike the Private Scheme, a PIF is a licensed vehicle that enjoys full tax neutrality in Malta and is simpler, faster and less costly than an AIF or UCITS which are also more regulated and restrictive.

In cases where the initial AuM is small, Axion Platform provides the right solution of setting-up under and existing umbrella, having also expert people on the Board and Investment Committe. You save on costs, initial capital and time to market, all while benefiting from the prestige of a licensed, regulated and already operating Malta structure.

How Fiduscorp Can Help

Our highly experienced and qualified people pioneered the funds' industry in Malta, and have assisted the structuring and day-to-day management and administration of numerous asset management, investment funds and similar entities.

Want to know more, contact us today for an initial consultation.