Residing but not Working in Malta

Hi Cain,

welcome to the forum.

Your family can't reside in Malta without income! So even if you work offshore you will be taxable somewhere ! If not Malta then somewhere else.

Offshore income brought into Malta is taxable - whether in Malta or in another country through double taxation agreements is up to you to decide.

If you do not reside in Malta then your wife will have to claim to be self-sufficient to gain residency but that does not come with health insurance . Free health insurance is connected to paying National insurance - usually through work. She  will have to disclose her finances and pay taxes in Malta.

I did know a family in a similar situation but they left the island after a few weeks leaving no message. I don't know what happened ......

It might be advisable to get professional advice to reduce your taxes.

Cheers
Ricky

Hi Ricky,

Thanks for the reply,

I believe that I would not have to pay taxes in Malta as I already pay them in the UK and will be keeping an address there for myself, however I should receive a rebate for these when submitting my tax assesment having spent less than the 90 day allowance within the UK........tax is a complicated area though but I will have a proffesional to deal with it....

As far as my wife is concerned do you think it would be worthwhile for her to have a part time job so that she will be recognised within the Maltese system and eligible for the benefits that go along with this?
Is it possible to pay NI without working?

I believe my wife will have to become a resident to rent a flat but I will only be "visiting" for 4 weeks at a time......I should therefore be covered by the UK E111 card for any medical issues I think....

Am I correct in saying that if I transferr 20,000 euro per year to Malta that we would be deemed self sufficient?

My two biggest concerns are health care and school for my daughter, other than that I can live with problems as they arise......which I'm sure they will.....

Cain

Hi Cain,

if you don't want to be a resident(tax resident) of Malta your wife will have to apply for residency on her own accord . Either as being economically self-sufficient and taxable on her income or by taking up employment in Malta and also paying taxes on earnings and any extra money brought into Malta. Malta and the UK have a double taxation agreement.

There are minimum income requirements for residency but they are not that high. A part-time job might get her over the limits but the job situation and earnings in Malta in general are not good!.

Transferring 20.000€ would be well enough to be self-sufficient but they are also well above the tax-free limit of around 8.000€. I think she would have to show the income herself and not say that her husband will be sending money.It will pay to get tax advice on how to arrange things .

The question is not where you have an address but where you are resident and taxable !If you are not fully taxable in the UK because of less than 90 days then the tax agreement might not count either. You will need tax advice. As you say, taxes are complicated -))))

When your wife and daughter are resident in Malta health insurance (whether private or state) and schooling are probably quite easy to solve!-)))

Cheers
Rickly

thanks again, Ricky

it is a mind boggling situation I am in, thats why I wondered if there was anyone else the same.....as if planning everything else wasn't tuff enough

Cheers
Cain

ok I think I have this correct.......

As long as I still pay tax in the UK due to the double taxation treaty with Malta, I will not be required to pay tax in Malta as my income will not be subject to double taxation, it helps that I will not reside in Malta for more than 183 days in any calender year as this is also mentioned in the treaty

http://www.hmrc.gov.uk/international/malta-dtc.pdf

not nearly as hard to find out as I first thought

Lets hope the euro/pound exchange rate remains favourable

once again thanks for taking the time to reply Ricky

I will be having this confirmed by an accountant so will post the end result for future reference

Cheers
Cain