@@MichaelRosmer Wow, thank you. Christmas comes early in 2021. There is a crowd of below 6 figure nomads who think twice before consulting a tax accounts, etc. For those, everything DIY for the nomadic, tax-reducing lifestyle is highly appreciated. E.g. someone who is in Portugal (or any nomad haven) and wants to start getting the proper tax treatment: how to get a NIF without guarantors, how to treat income from capital and crypto gains, etc. Also, I assume some people enjoyed the recent bull market but are now trying to get on top their portfolio allocation with non-correlated assets, etc.
Correct me if I am wrong but if you have capital gains outside Malta (do not bring it in to Malta) you have to pay tax in Malta. If you earn more than EUR 35000 you have to pay EUR 5000 in tax. No limit on income on the upside but flat tax of EUR 5000. There is a little box on the tax return that you check that you have earned more than EUR 35000 outside of Malta and then you pay the flat tax. This is relativly new in Malta.
There is a minimum tax which depends on the type of your visa, and remittance basis taxation depends on the type of your income. If you want to know more about the details or your specific situation, feel free to contact me calendly.com/michael-rosmer/offshore-citizen-30-min?month=2021-05
Great video, Mike - thanks for sharing. Curious, if I were to move to Malta and work remotely for a non-Maltese company (no offices in Malta) how would my income be taxed if it's transferred to a non-Maltese account? For remote tech employees who are EU citizens, which residence program would you recommend?
Thanks for another great video! Is there any way that a freelancer can structure themselves to live in Malta and pay zero or low taxes? Perhaps by incorporating overseas?
Low taxes almost certainly, zero taxes fairly tough. Really depends on the nature of the business. But Cyprus might be a better option for that use case. I've filmed another video going out about that program.
How can I apply the remitance rule for crypto investment as an EU Maltese resident let's say I invest my income arising from Malta in crypto and then when I cash out I don't remit this money to Malta, is this taxable or how can I make it not taxable. Maybe creating an offshore LLC and paying myself somewhere else instead of Malta ? Would that be considered illegal as per CFC rules.
I was researching that matter in Malta. There is many points to consider and words in terms of "resident" hav diffrent meaning in Malta imigration law, and is difrent in tax law. Depends where you will belong you will endup with tax type worldwide/remintance/teritorial. Difrent counries have difrent definitions for same things ! For crypto should be simple if you even if you are Malteese person and earned in Malta money you invested in eg. BTC (coins TYPE) stup as store of value then buying BTC for 1$ and sell for 2$ and capital gains is not taxable even for Malteese citzens. You will have to be wanrnet about coins that might be seciurity right to pay dividends etc. those have diffrent rules. Utility tokens and Coins are not seciurities in short. And you don't have to pay tax on them as LONG TERM INVESTMENT. If ou are Malteese citzen or long term resident. If you actively trading those coins it will fall under reglar INCOME from work and you will pay like 5-35%. CFC rules - as I understand CFC rules and dominicated/nondom system your company in TAX HEAVEN won't be dominicated in Malta even if you are so profits from non Malteese orginated income won't fall that. But you have to loan your crypto to your own company as far I know there is no blacklist of countries in Malta where you can have company. You should be ok. I am not an expert in Malteese law but I resarch that matter for myself.
We sometimes use them together yes but it depends case by case. Malta just added CFC rules about a year ago as part of the EU Anti Tax Avoidance Directive. They gave pros and cons when working with the other Maltese rules.
Hi Michael! Am I right? If I've got maltese GPR then I don't pay any capital gain tax if profits come from futures trading and money is held in UK bank but is spent on Malta.
Hi dear, If i am non Malti, and i will get 3k eur per month then how much tax will be deduct in 1st month and let me know till 1yr same tax % or not? If not what is that?
Yes they sometimes do. It varies quite a bit based on what residency program you're on and how much income you make (certain residency programs have thresholds, others do not, and then there's also tax credits given for tax paid abroad potentially eliminating any minimum tax). But to answer the question yes there could be up to a maximum of €15k/yr for the most expensive program.
@@MichaelRosmer if I get Malta citizenship by investment and move to malta, then , I guess the zero tax for non remitted income benefit is no longer applicable?
@@MAHAraaj1 if you're domiciled there then the remittance basis doesn't apply. Domicile is kind of a tricky thing because it's not defined in statute but usually you'd be domiciled there if you're a citizen.
Minimum of 5k, but only if you declar to earn more than 35k in a bank account outside Malta. If you earn less than 35k, outside Malta, you are taxed 0.
Is it true that as a Canadian, Malta has a double tax treat with Canada. Due to this, if I dont have a home in Canada, I can spend the minimum required for a property lease, and therefore due to double tax breaker rule, since I have no home in Canada, I can make Malta my tax home, even if I only spend 1 month a year there. In this case, the treaty protects me from double taxation. If I tried this in a country like Panama, there is no treaty so Canada would just say we dont believe you, youre a canadian tax resident
That's not quite accurate. You don't necessarily get treaty protection unless you qualify for local tax residency and there are some nuances to that but yes there is a tax treaty, which does protect you, which is better than someplace like Panama.
@@OffshoreCitizen Thanks for your reply. Based on my research Ive come to the conclusion that it makes sense to get tax residency in malta as a Canadian (especially if you work in crypto), just so I can call that my home, but then travel as as digital nomad, maybe 2-3 other countries a year. As long as you meet the requirements for health, and for insurance, and minimum rental or purchase costs, you get a tax residency. I guess one question would be the idea of the minimum 15,000 Euro a year tax. Is that avoidable?
if you want be in Malta less than 183 days you need to go for goverment tax programs lease 9600+, pay like 15k Euro tax , then if you are not in other country more that 183 days you can be malteese tax resident. Chceck malteese tax residency programs wchich sits you to use it you need local law company to navigate you. Same time while being in Malta 183 days = Malta tax resident in that year ad it's allmost "free" but force you to live here 183days.
@@kamil-6561 I see. So no way to avoid the rental minimum cost, and the minimum 15k euro cost. So in that sense it's almost like a minimum annual tax technically of 25k euro a year
@@KJ-bc3de yes because they "sell" you tax residency for those 25k Euro and don't ask anything else. It also have some implications to double tax trieties to make them valid in your favour because you can show your previous country that you have new home "here" , and pay tax there. In case you are from high tax country like Germany/Nitherlands/Sweden it matters that you are able to show proof that you have moved. Without such "presence" and paying you won't lose tax residency from high taxing country.
I trade a trading account for a funding company called ftmo. Once i made gains i get 70% of the prifits on the trading account. So i invoice them to get my money from the trading account they own. Would this count as commsion based income in malta? Or something else
Well there's a couple key things you aren't discussing here. The key thing isn't just 183 days. It is being tax resident AND not being tax resident in your previous place. So no Malta wouldn't tax you if you were resident there but your previous country might
For crypto earnings would something like this be a good idea? Setup LTD in Ireland and enjoy low 12.5% corporation tax. Live in Malta. Transfer your capital gains there at 0%.
@@micomarinas2753 That's true I can confirm! Unless you plan to use Revolut for personal and business go for it! Why be in a country you can't even access banking?
@@nicolet2165 I have appointement in bank delayed for 5 months... this is joke. To have bank account as tie to malta you can setup that in MeDirect, but don't write those money are from risky placess like gambling/crypto. MeDirect is realy fast - they are like IB/Saxo bt the will give you bank account to prove ties to Malta if you need it ASAP. @mico mariñas Te point is tax regime if you are foreginer in most cases no money in mateese bank = no taxes on that money in short. In Malta if you are forginer you can pay 5k Euro for ANY AMOUNT OF MONEY OVER 35000 Euro arraised outside of Malta - that is the point. If you remint money to Maltese bank it can give you more problems than not having it. Since Revoult/Wise/Bunq/Nuri and others can give you European IBAN there is no real deamand to have bank in Malta for me.
Very nice content. I love your topics and I love that you are straight to the point.
Thanks! Any other topics you'd like to see?
@@MichaelRosmer Wow, thank you. Christmas comes early in 2021. There is a crowd of below 6 figure nomads who think twice before consulting a tax accounts, etc. For those, everything DIY for the nomadic, tax-reducing lifestyle is highly appreciated. E.g. someone who is in Portugal (or any nomad haven) and wants to start getting the proper tax treatment: how to get a NIF without guarantors, how to treat income from capital and crypto gains, etc. Also, I assume some people enjoyed the recent bull market but are now trying to get on top their portfolio allocation with non-correlated assets, etc.
@@watzbaer thanks!
Correct me if I am wrong but if you have capital gains outside Malta (do not bring it in to Malta) you have to pay tax in Malta. If you earn more than EUR 35000 you have to pay EUR 5000 in tax. No limit on income on the upside but flat tax of EUR 5000. There is a little box on the tax return that you check that you have earned more than EUR 35000 outside of Malta and then you pay the flat tax. This is relativly new in Malta.
There is a minimum tax which depends on the type of your visa, and remittance basis taxation depends on the type of your income.
If you want to know more about the details or your specific situation, feel free to contact me calendly.com/michael-rosmer/offshore-citizen-30-min?month=2021-05
Very useful and informative video
Thanks for sharing this info👍
You're welcome, always a pleasure!
Anything else you'd like to see?
Great video, Mike - thanks for sharing. Curious, if I were to move to Malta and work remotely for a non-Maltese company (no offices in Malta) how would my income be taxed if it's transferred to a non-Maltese account? For remote tech employees who are EU citizens, which residence program would you recommend?
Does time spent on a Maltese flagged yacht count as time spent in Malta?
Haha cool question, no it doesn't
Thanks for another great video! Is there any way that a freelancer can structure themselves to live in Malta and pay zero or low taxes? Perhaps by incorporating overseas?
Low taxes almost certainly, zero taxes fairly tough. Really depends on the nature of the business. But Cyprus might be a better option for that use case. I've filmed another video going out about that program.
@@MichaelRosmer Brilliant, look forward to seeing that!
How can I apply the remitance rule for crypto investment as an EU Maltese resident
let's say I invest my income arising from Malta in crypto and then when I cash out I don't remit this money to Malta, is this taxable or how can I make it not taxable. Maybe creating an offshore LLC and paying myself somewhere else instead of Malta ? Would that be considered illegal as per CFC rules.
I was researching that matter in Malta. There is many points to consider and words in terms of "resident" hav diffrent meaning in Malta imigration law, and is difrent in tax law.
Depends where you will belong you will endup with tax type worldwide/remintance/teritorial. Difrent counries have difrent definitions for same things !
For crypto should be simple if you even if you are Malteese person and earned in Malta money you invested in eg. BTC (coins TYPE) stup as store of value then buying BTC for 1$ and sell for 2$ and capital gains is not taxable even for Malteese citzens. You will have to be wanrnet about coins that might be seciurity right to pay dividends etc. those have diffrent rules.
Utility tokens and Coins are not seciurities in short. And you don't have to pay tax on them as LONG TERM INVESTMENT. If ou are Malteese citzen or long term resident.
If you actively trading those coins it will fall under reglar INCOME from work and you will pay like 5-35%.
CFC rules - as I understand CFC rules and dominicated/nondom system your company in TAX HEAVEN won't be dominicated in Malta even if you are so profits from non Malteese orginated income won't fall that. But you have to loan your crypto to your own company as far I know there is no blacklist of countries in Malta where you can have company.
You should be ok. I am not an expert in Malteese law but I resarch that matter for myself.
@@kamil-6561 thank you for your share and research into this.
Great video Mike . Would Malta residency fits well with US LLC for tax optimisation ? Is there any CFC rules when it comes to Malta ?
We sometimes use them together yes but it depends case by case.
Malta just added CFC rules about a year ago as part of the EU Anti Tax Avoidance Directive. They gave pros and cons when working with the other Maltese rules.
Hi Michael! Am I right? If I've got maltese GPR then I don't pay any capital gain tax if profits come from futures trading and money is held in UK bank but is spent on Malta.
What about dividends.
Hi dear, If i am non Malti, and i will get 3k eur per month then how much tax will be deduct in 1st month and let me know till 1yr same tax % or not? If not what is that?
Doesn't Malta have a minimum tax for nom-doms? Didn't hear that mentioned.
Yes they sometimes do. It varies quite a bit based on what residency program you're on and how much income you make (certain residency programs have thresholds, others do not, and then there's also tax credits given for tax paid abroad potentially eliminating any minimum tax). But to answer the question yes there could be up to a maximum of €15k/yr for the most expensive program.
@@MichaelRosmer if I get Malta citizenship by investment and move to malta, then , I guess the zero tax for non remitted income benefit is no longer applicable?
@@MAHAraaj1 if you're domiciled there then the remittance basis doesn't apply. Domicile is kind of a tricky thing because it's not defined in statute but usually you'd be domiciled there if you're a citizen.
Minimum of 5k, but only if you declar to earn more than 35k in a bank account outside Malta.
If you earn less than 35k, outside Malta, you are taxed 0.
Is it true that as a Canadian, Malta has a double tax treat with Canada. Due to this, if I dont have a home in Canada, I can spend the minimum required for a property lease, and therefore due to double tax breaker rule, since I have no home in Canada, I can make Malta my tax home, even if I only spend 1 month a year there. In this case, the treaty protects me from double taxation. If I tried this in a country like Panama, there is no treaty so Canada would just say we dont believe you, youre a canadian tax resident
That's not quite accurate. You don't necessarily get treaty protection unless you qualify for local tax residency and there are some nuances to that but yes there is a tax treaty, which does protect you, which is better than someplace like Panama.
@@OffshoreCitizen Thanks for your reply. Based on my research Ive come to the conclusion that it makes sense to get tax residency in malta as a Canadian (especially if you work in crypto), just so I can call that my home, but then travel as as digital nomad, maybe 2-3 other countries a year. As long as you meet the requirements for health, and for insurance, and minimum rental or purchase costs, you get a tax residency.
I guess one question would be the idea of the minimum 15,000 Euro a year tax. Is that avoidable?
if you want be in Malta less than 183 days you need to go for goverment tax programs lease 9600+, pay like 15k Euro tax , then if you are not in other country more that 183 days you can be malteese tax resident. Chceck malteese tax residency programs wchich sits you to use it you need local law company to navigate you.
Same time while being in Malta 183 days = Malta tax resident in that year ad it's allmost "free" but force you to live here 183days.
@@kamil-6561 I see. So no way to avoid the rental minimum cost, and the minimum 15k euro cost. So in that sense it's almost like a minimum annual tax technically of 25k euro a year
@@KJ-bc3de yes because they "sell" you tax residency for those 25k Euro and don't ask anything else. It also have some implications to double tax trieties to make them valid in your favour because you can show your previous country that you have new home "here" , and pay tax there. In case you are from high tax country like Germany/Nitherlands/Sweden it matters that you are able to show proof that you have moved. Without such "presence" and paying you won't lose tax residency from high taxing country.
is there a tax treaty between malta and usa and philippines? do malta have crs?
Every country that matters has CRS.
There is a tax treaty with the US and Malta and US and Philippines
Georgia has no CRS
oh that's great...no crs! thanks for the reply! :)
how about tax treaty between malta and philippines?
@@micomarinas2753 no they don't. The question is whether one is necessary for your purposes
Does everything have to be within a program?
As an EU citizen, I can move freely. Does this quality under the one program which has a minimum tax?
Yes u do need to apply for a program or visa. Just being a EU citizen is not enough...
Very interesting info! Does Malta issue a TIN if one becomes resident?
I am a resident in Malta and a Swedish citizen. When I became residen in Malta ten years ago I got a TIN number.
I trade a trading account for a funding company called ftmo. Once i made gains i get 70% of the prifits on the trading account. So i invoice them to get my money from the trading account they own. Would this count as commsion based income in malta? Or something else
Likely earned income but it depends on the details of the structure.
if I moved to malta for more than 183 days, withdrew crypto currency gains into my UK bank account would I have to pay tax?
Well there's a couple key things you aren't discussing here. The key thing isn't just 183 days. It is being tax resident AND not being tax resident in your previous place.
So no Malta wouldn't tax you if you were resident there but your previous country might
For crypto earnings would something like this be a good idea?
Setup LTD in Ireland and enjoy low 12.5% corporation tax.
Live in Malta. Transfer your capital gains there at 0%.
just go to dubai it's 0% tax dor offshore company.....
Anyone else see the channel with comments turned off?😂
Not true unless you want to hide or play games
What's not true?
is it hard to open a bank account in malta as citizen and as a permanent resident status?
@@micomarinas2753 yes and slow
@@micomarinas2753 That's true I can confirm! Unless you plan to use Revolut for personal and business go for it! Why be in a country you can't even access banking?
@@nicolet2165 I have appointement in bank delayed for 5 months... this is joke.
To have bank account as tie to malta you can setup that in MeDirect, but don't write those money are from risky placess like gambling/crypto.
MeDirect is realy fast - they are like IB/Saxo bt the will give you bank account to prove ties to Malta if you need it ASAP.
@mico mariñas Te point is tax regime if you are foreginer in most cases no money in mateese bank = no taxes on that money in short.
In Malta if you are forginer you can pay 5k Euro for ANY AMOUNT OF MONEY OVER 35000 Euro arraised outside of Malta - that is the point.
If you remint money to Maltese bank it can give you more problems than not having it.
Since Revoult/Wise/Bunq/Nuri and others can give you European IBAN there is no real deamand to have bank in Malta for me.
All costs Money 💰
Most confusing video ever, supposed to be about Malta and you keep mentioning all these other places.
I understood him clearly. It's good he also mentioned Cyprus and Portugal to get a sense of how Malta works compared to other EU havens
Two picture could replace 10 min speech! Dislike