Help needed with something that may be confusing

@cjmarschamy husband and myself have just moved to gozo 2 weeks ago ,my husband is retired and gets his state penson .

we had to notify penson office in England.

and no he has no tax on it because he only get that .

Myself I might try getting a part-time job.

We both have our malatese citizenship as my mum was born in malta .

Hope this is helpful ll

@cjmarschallv   Every year its the law here you have to complete a tax return regardless of whether you need to pay tax here or not.   With regards to the UK if your wife has just one pension she probably will not have to pay tax there, they would notify you anyway.

Here you are taxed on the amount of money you bring into the country from your UK bank accounts.

@GozoMo

Thank you .. so if her state pension is her only income then she would pay Maltese tax on that amount, if it is above the personal allowance level .. would she be taxed on the whole amount or just the amount above the level?

@cjmarschall  She would not have to pay tax on it here if its the basic pension.

@GozoMo

It would be around £240 (280.48 Euros at current exchange rate) per week (that is estimated allowing for rises over the next 4 years), or 14,584.96 Euros per year, she would not be a tax resident in UK

​If this helps, you can find the 2024 tax rates on the Malta IRD website

https://cfr.gov.mt/en/rates/Pages/TaxRa … -2024.aspx

A married couple can choose to either be taxed as a couple at married rates, or individually as two single rates.

@Evreham

Yeah seen those, but still doesn't help.

Is there a personal allowance like the UK, which if you earn over you are taxed on the amount over the personal allowance.ie

So assume we have a joint income of 25,000 Euro per year

So we get 12,700 Euro with no Tax which leaves 12,300 Euros for taxation  - We pay 15% tax on 8,499 Euros & 25% tax on 3,801 Euros which equates to a total tax of 2,225.10 Euros per year

At least that is how I see it .. who knows!

@cjmarschall

Four years time tax may have changed by then.

@GozoMo

Of course, just trying to get my head around the current system