Income Tax

Last activity 16 February 2023 by montessorikids

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montessorikidsNew member15 February 2023 11:44:28

Hi,

I am currently living in Germany and considering moving to Malta in March this year (non domiciled but resident). I am self-employed and I make a living providing consulting to a US based client. My I'm getting paid through Wise.

My goal:

I want to reinvest the money I make from consulting in buying apartments and renting them. But this would be in another country (EU or Non-EU, don't know yet).

Now I'm looking for a LEGAL way to optimize my income taxes made from consulting so I can reinvest that money.

On Malta's offical government site it says you only have to pay taxes in Malta on income/funds remitted to Malta or that were earned in Malta itself. I understand I need to speak to a tax expert but I would like to get some information from this forum first.

my questions:

1. How can I have only 20% of my consulting income to be taxed in Malta and the remaining 80% invested in my real estate business?

2. As I'm using Wise as payment method is the total amount on my account considered as Maltese income and therefore taxable?

Thanks

volcaneViP16 February 2023 08:52:24

1063

The fine print is you need to pay taxes where it is earned.

But suggest you speak with a tax expert, I suggest contacting CCPS Malta.

montessorikidsNew member16 February 2023 16:25:05

@volcane Thanks for the answer. Just to make sure I understand you correctly, if I moved to Malta and I spend a few weeks in another country that money wouldn't be taxable?

On the government website it reads:

Any person who is ordinarily resident in Malta but not domiciled in Malta is taxable only on income arising in Malta and on any foreign income remitted to Malta (i.e. on income and chargeable gains arising in Malta and on income outside Malta that is received in Malta).

Arising in Malta means earning income in Malta?

volcaneViP16 February 2023 16:49:46

1063

Yeah essentially. There are though various options depending on earnings level to benefit from the tax system here in a legal manner. A tax professional will help you.

Be aware there are quite big changes coming in the next year or so that might impact you quite a bit in this regard.

montessorikidsNew member16 February 2023 17:13:58

@volcane

Alright in this case I will talk to a tax expert.

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