MALTA Law and Practice Contributed by: Rosanne Bonnici and Rebecca Diacono, Fenech & Fenech Advocates
7.2 Expeditious Citizenship If citizenship by naturalisation is not an option, an indi - vidual may consider following a path from residence to citizenship in terms of the Granting of Citizenship for Exceptional Services Regulations (at the time of pub - lication, the legislative framework is being updated in line with the judgment of the CJEU in Case C-181/23 against Malta). The Regulations form part of a wider reform of local laws to clearly cater for a regulatory framework leading from residence to citizenship. The Regulations require a basic period of residence. Two routes are available: a 12-month residence period and a 36-month resi - dence period. Applicants need to undergo an “eligibil - ity test”, focusing, inter alia, on due diligence reviews and checks on source of wealth and source of funds. Upon completion of the residence period and passing the eligibility test, an application for citizenship is to be lodged by the applicant. Upon approval, the new citizens are required to rent or purchase a residential property in Malta for a minimum of five years, and to donate to philanthropic entities approved by the Commissioner of Voluntary Organi - sations. 8. Planning for Minors, Adults with Disabilities and Elders 8.1 Special Planning Mechanisms The Trust and Trustees (Protected Disability Trusts) Regulations establish “protected disability trusts”, which must adhere to the following conditions: • they must be set up by a family member, as defined, of the person having a disability; • they must be for the benefit of a person who has a disability, where the person is entitled to benefit in an exclusive manner, save for certain exceptions, such as the parents being beneficiaries during their lifetime, with the person with a disability becoming a beneficiary upon the parents’ death; and • the authorities must be notified of the existence of the trust.
The ITA and DDTA both cater for certain exceptions and exemptions for income and capital gains derived by the trustees of a protected disability trust, subject to statutory conditions. 8.2 Appointment of a Guardian In terms of the Civil Code, the appointment of a tutor for minors is made by court order on the demand of any person. However, the appointment of a guardian over a person who has attained the age of majority does not need to be made before the courts. An application to appoint a guardian is to be made to the Guardianship Board and supported by evidence that the individual’s medical condition renders them not in a position to manage their personal affairs. On application, the reason for guardianship must be indi - cated. In the cases of a general guardianship, the par - ticular case is re-assessed every six months to a year. 8.3 Elder Law Around 18% of Malta’s population is aged 65 of over; this number has steadily increased over the last dec - ade or so, much in line with the rest of Western Europe. In the past few years, several fiscal incentives have been granted to incentivise individuals to plan for their future from a private pension perspective. The Personal Retirement Scheme Rules and the Voluntary Occupational Pension Scheme Rules contain said fis - cal incentives in the form of several tax deductions and tax credits. There is admittedly more to be done locally in the context of pensions, both public and private, to prepare the population for the future, from a financial perspective. 9. Planning for Non-Traditional Families 9.1 Children The Civil Code does not distinguish between children born in and out of wedlock, nor does it differentiate between adopted children and birth children. The Civil Code does provide that individuals who were not yet conceived at the time of the testator’s death are incapable of receiving by will. Accordingly, chil - dren born posthumously may not inherit.
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