Family Business Ownership Transfer Incentive
At AE Business Advisors, we understand that for many Maltese enterprises, business is more than commerce – it’s family. Family businesses represent stability, continuity and intergenerational effort. Yet one of the most complex challenges they face is ownership transition. Recognising this, the Family Business Transfer of Ownership Incentive, managed by Malta Enterprise, provides structured support to facilitate smooth succession.
This scheme is not just a financial mechanism, it’s a strategic tool to preserve family legacies while empowering the next generation of entrepreneurs.
What Is the Family Business Transfer of Ownership Incentive?
This incentive supports family businesses undergoing a transition of ownership from one generation to the next or between close relatives. The aim is to safeguard continuity, improve governance and ease the financial and administrative burden associated with business succession.
It complements broader goals under the Family Business Act, reinforcing the importance of stability in family-run enterprises across Malta.
Why It Matters
Succession planning is a pivotal milestone in any business lifecycle. Yet many family businesses delay the process, fearing disputes, tax implications or operational disruption. This incentive encourages proactive succession planning by offering direct support and reducing transactional friction.
Without structured planning and support, transitions can lead to disputes, fragmentation or even business closure. This scheme creates a foundation for thoughtful, secure ownership transfer.
What Support Does It Offer?
Under this scheme, eligible family businesses benefit from:
- Financial Assistance: To cover expenses directly linked to the transfer of ownership, such as legal and notarial services.
- Professional Guidance: Through support for mediation services and succession planning advisory.
- Structured Transition: Assistance with setting up corporate structures or formal shareholding changes aligned with continuity and governance best practices.
Who Is Eligible?
To qualify:
- The business must be registered as a family business under the Family Business Act.
- The ownership transfer must occur between family members (including ascendants, descendants, siblings or cousins).
- The business must be actively trading in Malta and compliant with its fiscal obligations.
AE Business Advisors provides full assistance in verifying registration status and eligibility for this scheme.
What Does the Transfer Cover?
Qualifying transfers include:
- Shareholding from one family member to another
- Sole proprietorship passed to a descendant or relative
- Transformation of a family-owned operation into a limited liability company with adjusted shareholder structure
The incentive covers professional fees involved in the process and is limited to transfers that reflect genuine succession, not arms-length sales or restructuring for tax purposes.
How AE Business Advisors Can Help
We are proud to have helped numerous Maltese families navigate this crucial phase in their business journey. Our succession specialists work closely with families to:
- Plan strategically for generational transition
- Structure of legal and financial frameworks for long-term sustainability
- Access Malta Enterprise support, including application management, document preparation, and communication
We approach family business transitions with discretion, empathy and a focus on unity, ensuring continuity without disruption.
Contact AE Business Advisors today to begin the process of securing your legacy. Let us help your family business prepare for the next chapter with the right strategy, the right structure and the right support.
+356 2095 8100