Malta's Brilliant Tax System - How it Works and How You Might be Able to Benefit
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- เผยแพร่เมื่อ 29 ส.ค. 2024
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Today we will dive into Malta’s brilliant tax system.
Many people have a misunderstanding of how Malta’s taxation works. The headline tax rates in Malta are not so compelling but you can manage to structure in a certain way and pay low taxes.
Many of our clients find this country to be fascinating, and they are considering it as a place to move to. However, few of them actually do so, and those who don’t stay there for a long time.
Why is this the case when Malta is such a good country from a tax point of view?
How does the practice of actually setting up there differ from what’s on paper?
Could you still benefit from setting up in Malta? Is Malta a tax haven? Let’s find out.
Who are we and what do we do?
We are Offshore Citizen team. We help people become global: get a second passport, set up a second residency, pay less taxes, do banking abroad, etc.
We have lots of interesting articles on different topics, we have relevant information up to date.
Author: Michael Rosmer
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St Lucia citizenship in 3 months, expatriate from US, residence in Malta ftw
Interesting video Michael, thank you.
Malta is looking very enticing for Australians, there is a current and working double tax treaty between Oz and Malta!
The headaches with Maltese Banks is a major challenge...
Unfortunately, it is.
Are you considering any other locations?
@@OffshoreCitizen Many of the EU countries with favourable tax and banking don't have DTTs with Oz such as Portugal, Serbia, Cypress...
Bulgaria is interesting but with no DTT with Oz & the ATO it's just too risky.
Romania does have a DTT with Oz but to get a Romanian Passport one has to renounce any others...
Do you have any suggestions for favourable EU tax/citizenship combination?
I feel that my business plans are too small and risky to warrant setting up business in one European jurisdiction (begin learning their language), then begin the visa process in another EU jurisdiction (and learn their language)...
I may have no choice but to "straddle borders" and wear the ongoing legal & accounting fees, cultures, languages.
Sailing has been a lifelong passion and if I wanted the nomad life I'd sell up, move aboard my yacht an' sail the world!
To be honest with crypto taking off the banks r crapping it soon your money is safer in crypto look at top players where's there money i can assure you its not in the banks FACT
@@mikejames9841 A very good point James, I've been considering implementing a crypto payment processing option for an online business I've been planning.
The only one bit of advice to people i can give that WILL help them on there way watch where the money is taken from and defo watch where it is going or gone(crypto) God bless folk ty
your hands are massive bro
Thanks for all your hard work. Appreciate your videos.
Thanks, anything you'd like to see?
@@MichaelRosmer Thanks for your reply. Yes, I would love to see explained that if you do get a residency in an EU or Shengen country, can you live in another part of the EU or Shengen, or can you only do that if you become a citizen? No matter how much I read up on this, everyone glosses over it and implies you can, but never really states it clearly. Which leaves me a little suspicious. Thank you very much from one Canadian to another!
John
Thank you for sharing your knowledge, you are a very good communicator.
Which low-tax off-shore country would you consider to be the best for small businesses, just starting off?
Seems that most tax havens have very high fees for registering a company, and opening a bank account requires a lot of money. It is also difficult to know where to find correct, concrete and specific information on this online. Would be interesting to hear your opinion!
Thanks for the compliment.
There's no one size fits all it really depends on your personal circumstances, the nature of your business, etc.
Are you willing to move? If so where? Where are you resident? Where are you a citizen?
Haha, this international tax stuff is a real art! Very entertaining and interesting stuff :) I'm considering a move to Malta one day.
Haha it's kind of fun.
Yeah not many people end up staying in Malta long.
Personally I find these small islands too restrictive but some people like it
@@MichaelRosmer do you provide service to start business in Malta ?
@@MichaelRosmer Do you sail Michael?
How do the new anti-hybrid mismatch rules effect Malta & companies with a residency in Malta who are domiciled in a country that recognizes Malta as the tax residency when the company is managed in Malta and not tax resident in the jurisdiction where it is registered because of a tax treaty.
So the hybrid mismatch rules don't typically have concerns in cases where a company is resident they are generally concerned about where a company isn't resident. So, in the case of Malta if the company is claiming tax residency on the basis of management and control that's not going to result in a double non-taxation situation on the basis of non-residence.
The trick in it lies that Malta has very deliberately designed their tax rules such that they want foreign companies to be able to be managed in Malta without being subject to tax on local income in order to encourage their local fiduciary industry there.
If you dive into the specifics of what Malta has implemented (some of which aren't taking effect until 2022) you'll notice they are targeting 3 types of transactions that don't affect these types of residency structures.
The Maltese are smart about their loopholes.
@@MichaelRosmer At the time I asked you I hadn't actually been able to read the rules myself. I had only noticed a note in a report that they had implemented hybrid mismatch rules. I noticed in the Hong Kong treaty with Malta that while management and control could be exercised on Malta, because that would only make the party liable for territorial tax in either Hong Kong theoretically or Malta theoretically, it meant that registration & domicile would trump management & control for the determination of residency. This would appear to make it easy for non-resident non-domiciled "Maltese" owners/directors to operate the company from Malta without triggering CFC rules too. But being managed & controlled from Malta and keeping operations out of Hong Kong while disallowing sales in Hong Kong would pretty much mean a Hong Kong company should be able to secure an offshore determination from Inland Revenue too, meaning you achieve the same zero tax result with a Hong Kong company in Malta. I guess I'm saying I agree. I have read a lot of their tax treaties & they have crafted them in just the right way to avoid most issues.
@@jeremyleonbarlow they are super smart in some of the subtleties of how the rules apply.
can you discuss the possibility of moving to malta for saving on crypto capital gains?
Will do
@@OffshoreCitizen Also interested in this idea. I think the strategy is get a fiscal (tax residency) in Malta, by renting property or buying property. That qualifies you for the residency programme. There is no minimal time required in the country, so long as you meet these requirements. I believe this gets you a tax certificate also. So you can use this to give to your home country, but now your new tax home is Malta, and your physical home is malta also. But you can travel the world from here and dont even really need to stay there. Would love him to talk about this
@krispy kreme no you need for renounce citizenship to be totally free. But you have the foreign sourced income exemption for 100k. Look into that
@krispy kreme yeah I don't know how those work with Americans sorry. I know you're Taxed based in citizenship
how many days a year would you have to live in malta to take advantage of these tactics?
Depends on your business and situation. Some you don't need to be resident at all. Other parts you need to be mote there than other countries but it's very situation specific.
If you want to go over details the best is to book a call
calendly.com/michael-rosmer?month=2021-03
I realize it's pretty off topic but do anybody know of a good site to stream newly released movies online?
I'm Spanish. I own a llc in USA. I develop apps. If I keep my money outside Malta and rent a place there, will I avoid paying taxes?
Any idea of what you should expect to pay an ARM for processing your application?
Very accurate and useful, making some complex issues easy to follow,
Happy you found it helpful!
Anything else you'd like to see?
@@OffshoreCitizen I am currently in the process of setting up a company with Mgmt Control in Malta, prior to NHR in Portugal - can you recommend in-Malta company to support set up for a small business?
Great video thanks
What if I'm a resident non domiciled in Malta and I own and manage a foreign company from there leaving the money of the company outside of Malta and sending there to my self just a salary to live? Malta will claim to pay also corporate tax there since I'm working from there?
It depends on the nature of the business and work.
In theory you could constitute local source income. Also you've got CFC rules to consider.
You'd need to dive into the details though.
What about social security ??
Do you need to pay a percentage??
@@brambakker1939 depends on your type of income and source.
@@MichaelRosmer an internet business as an independent guy.
Im from belgium btw.
And i would pay myself a monthly salary.
The rest would stay in the business
@@brambakker1939 on a salary you'd need to pay socials
Well explained
Hi,
Interesting, thank you for the video!
May I ask if for example there is a company in Spain, but it will be managed from Malta, under the double treaty will the company be tax resident of Malta?
Hello
Hi I m an Indian national living in Singapore ,my concern to open a sole proprietor company in Malta how much it cost in all paperwork and for my work permit and dependents visa ? And how much will be the yearly expenses maximum to maintain company either shop run or closed ?
Please send us a message through www.offshorecitizen.net
Hi, I'm currently living in Malta, but I want to move to Singapore or Kualalumpur. I don't like overpopulated infrastructure in Malta.
@@adammobile7149 yeah this is definitely the issue with Malta much like Panama and Bulgaria very few people stay long. Cyprus more so
@@MichaelRosmer cool YT channel, I found it yesterday. I'm mainly interested in digital nomad videos about south east Asia. You already covered topic of big cties, maybe you can try to cover topic of suburban areas and smaller cities? In this sense that cost of living is usually totally different there, but it's relatively easy to travel in to the city center.
@@adammobile7149 great idea thanks will do!
Hello
I'm Italian living in London.
A company based in Malta is proposing me to move in Malta and be employed over there. I'm in the shipping industry. My salary shall be over 100K
I understand that I shall pay a flat rate of 15% taxation. Is that correct.?
What are the requirement to get these benefits.
Thank You
Paolo
my only fear is where to put the money once you sold your stocks.... I guess some bank with an IBAN out of ur country? In my case, I'm from Spain, better if I put all the money outside from Spain but then... you have to notice tax agency you have more than 50k€ in anohter bank that is not with ES-IBAN.... Everything is quite simple, I'm still out of Spain in China, for almost 10 years now. But for me, it's almost impossible to bring here the money... too much control (although I will pay only 0.3% taxes). I have been watching WISE, but seems this one share info with Spanish tax agency... May I ask you? What bank do you recomend for this? for a No-Dom in Malta. My wife and me works in the Spanish Consulate and Embassy here in China so we know everything we have to know about how this work EXCEPT when the money arrive to your bank account.... HOW to avoid an State ask you for that money.... Thank you
Good afternoon,
Firstly, thank you for your video. It was very informative. I am a Maltese resident who is opening a private limited company registered in Malta. The business which I'm operating is an online business in which I source products abroad and sell them to other foreign counties (excluding Malta.) Would it be possible for me to acquire the 6/7 tax rebate as a dividend paid to myself as a shareholder? Thank you so much for your time and help 💛
No that's not the way it works, it's a two company structure
Do you think this system will change?
100% Good people i cant think of nicer people and yes the economy is second to none and im SCOTTISH
Visited or lived there?😄
Thanks for the info, appreciate it! I want to live in Indonesia but opening a company there is not convenient, thus I want to get residency in a place where it is easy to get and I don't have to live there (considering I have EU residency and passport).
Malta sounds like the right place... I work online so if I make my money outside Malta and can live outside Malta, I am able to pay a very low tax, correct?
Hi Giovanni, lot's to cover here. Probably best to discuss all the details via call, as it requires learning more about your specific situation in order to be able to give a proper response
@@OffshoreCitizen in 30 minutes will you be able to identify the best option for me in regard to my situation?
I would like know the income tax slab of an individual
Depends on the type of income, whether you're resident and domicile or just resident and which visa you're on.
@@OffshoreCitizen i heard flat18% tax rate is applicable to all individuals in malta, is it correct
@@fandlshotz not exactly the flat rate depends on the source of the income etc
I'm Australian born with a parent that will allow me to get Maltese citizenship.
Would this provide the same tax benefits get citizenship via parents vs getting special Maltese visa for business if my objective is tax minimisation????
No, you're not taxable based on citizenship, you're taxable based on residency and domicile, unless you move there you don't get the benefits
@@OffshoreCitizen
I plan to live there for a few years as a resident so I will be there more than 6 months for sure.
@@25Alpha ok great but it's only applicable while it's where your actual home is based there
@@MichaelRosmer Hello Michael. As we approach 2024, is this video still accurate? What’s your work email address? Have a good day.
No need to have a company on Malta...great tax benefits for private residents
Won't work. Try explaining it to tax authorities without hiring a bunch of lawyers. See if they agree and let you walk.
Malta or USA?
You don't do free consultation calls?
No, too busy with paid calls as is we give free info on TH-cam if you want personalized advice it is a, paid consult
Confusing people is not the right way man..😂
All the intro before you started near lost me due to the tone and un ease of brushing it forward before the moment content of you video, when but it is important to ask people to like comm share and ding ding. Surprise. Subscribe. Notify. So just do a separate video maybe with a faster message. As the tech revolution is upon me I go with sound first. All being said the first video of yours I watch. So I'll maybe be too quick to be involved like this..
Q thumbs up