Present in Malta for
more than six months consecutively. (NB: The Maltese
tax system is based on the concepts of domicile,
residence, and ordinary residence.)
Persons who are domiciled
and ordinarily resident in Malta pay tax on their
Maltese and worldwide income. Those who are domiciled
elsewhere but resident in Malta pay tax on Malta-sourced
income, and worldwide income when remitted to Malta.
Non-residents are just taxed on their Malta-sourced
income. Under the New Residents Scheme introduced
by Act of Parliament in 2004, a flat 15% rate is
payable, subject to a guaranteed minimum annual
payment (and proof of income of EUR23,000 from outside
Malta, or of capital of EUR349,000, a designated
portion of which must be remitted to Malta.
Under the New Residents
Scheme introduced by Act of Parliament in 2004,
an Article 56(10) residence certificate will be
issued following approval of the permanent residence
application, and payment of the minimum guaranteed
tax payment required by the scheme. Such residents
are then entitled to reside permanently in Malta
(without some of the benefits afforded to Maltese
citizens, however). Residence must be taken up within
a year of approval of the application.
Cost
of Residence Document (approx)
Work
Permit Required
Work
Permit Authority
The minimum annual tax amount is
required to be paid up-front when applying for residency
under the new Residents Scheme (EUR4,192).
As Malta is a member of the EU, citizens of the
EU and EEA (European Economic Area) do not require
a work permit. However, non-EU residents do require
a Work Permit. Persons present in Malta as permanent
residents are able to use Malta as a base to work
from, but are not permitted to be employed in, or
offer their services in a freelance capacity to,
the local market. Those present in the country as
ordinary residents (a status only available to citizens
of EU member states) are permitted to work, but
must first obtain a work permit.
Employment Licences Office (Employment
& Training Corporation).
Personal
Income Tax
Corporate
Income Tax
Social
Taxes
Personal Income Tax for ordinary
residents is imposed progressively to 35% (for both
ordinary residents and non-residents), with a tax-free
threshold of EUR8,150. Permanent residents pay a
flat 15% on income remitted to, or earned in, Malta,
subject to a guaranteed annual minimum tax payment.
Self-employed workers can also pay at a 15% rate.
The Corporate Tax rate is 35%. Companies
may qualify for tax relief or a tax holiday if active
in certain business sectors.
Contributions for employed persons
10% by both employee and employer or EUR32.33 per
week employee and employer, depending on income
band. Self-employed pay between EUR25.50 –
EUR48.50 per week.
Capital
Gains Tax
Property
or Wealth Tax
Stamp
Duty
Capital Gains Tax is generally charged
at 12%, although there are some exceptions.
There are no specific property taxes in Malta,
although 12% is payable on transfers of immovable
property, with the exception of the sale of a primary
residence.
Stamp duty is imposed at 2% on share transfers;
0.4% of nominal value of share issues; and 5% on
transfers of immovable property.
Other
Taxes
VAT is imposed at a standard rate of 18%, and
there is also a reduced rate of 5%.
I am facing a dilemma and would like to invite any reader to advise me.
I am a Brit who has lived outside UK since 1993- initially in Belgium (5 years) & subsequently in 4 African countries. After a year outside UK, the UK Inland Revenue confirmed my status as ‘non-resident’ for tax purposes and as I have had no income in UK, I have not completed a UK tax return for many years. I visit UK very rarely, normally for one or two weeks per year.
In May 2011, I was made redundent by my employers, who were downsizing. This coincided with a move to retire in the Netherlands, where I now have official residency (my wife is Dutch). I thought that, at 63 years of age, I would be unlikely to find suitable employment; in fact, I have not tried hard and had resigned myself to permanent (but slightly premature) retirement.
However, to my surprise, I have recently been approached (through a mutual acquaintance) by a company that wishes to use my skills on a project in the Isle of Man. The role, if & when confirmed, would see me working for about 10 days a month in Isle of Man, with about 5-7 additional days per month, working from home. Contract will be for about two years. The firm has asked me to confirm if I would prefer to be paid (and therefore be taxed) in Netherlands or Isle of Man, the idea being that I create a self-employment entity for this employment. I have no data on which to base a response. Given Isle of Man's traditional ‘low tax ‘environment, are there any benefits to declaring an income in IOM? Are there any Isle of Man residency implications? Netherlands takes a tax cut on total world wide income, and, as I have never had any contact with the Dutch authorities, I am reluctant to start such a relationship now. Do I have to declare income in both countries, with a breakdown prorata to the time spent in each jurisdiction? Should I declare income to UK Inland revenue?
If anyone has pertinent advice on these points, I’d be grateful to hear them.
Hi, I live in South Africa, and along with 2 business partners (one in South Africa and one in Ireland - all South African citizens though) are setting up a company that designs Smart phone applications. As they will be sold on the various platforms (none of which operate out of South Africa)we have to list our company as operating out of Ireland anyway. As such, we have decided to set up our company in the best tax country and are wanting info on whether Jersey or Malta is best? If anyone has some inside info we would really appreciate it!! Thanks!Mary
Just wondering if anyone 'on the ground', as it were, might be reading and able to help me...I was considering relocating my hairdressing business from the UK to Ireland before the economy started to go properly belly-up...now, not so much.
Are things as bad as they seem over there, or is it being over-hyped by the media? And is the government still keen to support small business people? Cos if not, I'll look elsewhere...
I am moving full time to France in Jan 2012 where I will be working as a freelance contract engineer to a number of Australian based companies. It is my choice to move to France not a work requirement. I will be renting my house out in Austrlalia and renting a house while I am in France. I hold both EU & Austrlain citizenshiip. I am married with 2 young children. Approx total family income $100k AUD. Do I pay tax in France or Australia or both ? Any help or guidance would be much appreciated.France move
Cyprus
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