Taxes in Malta on owning a foreign company

Member since 06 April 2017

Freeland3rMember08 April 2017 20:50:48

Hi everybody,

I am considering moving to Malta for longer than 183 days per year, therefore as I know I will become a tax resident there ( I am an EU national ).

I have question, I have an income from a Delaware LLC.

What taxes and what percentages of taxes would I need to pay if I am living in Malta?

As my understanding is based on the extensive research i have done, that the personal income tax is 15% if remitted to Malta ( aka living expenses on Malta, or whats spend on Malta )

and the corporate tax rate is 35% on income remited to Malta for foreign companies, that are managed and controlled on Malta.

So basically, if i live on 1000€ per month, i need to remit around 1800€ per month. Is that correct?

Thank you in advance for the answers,

volcane ViP

Member since 03 November 2015

volcaneViP10 April 2017 09:56:11

1075

suggest you speak to a professional, its much more complex than that.

If you are based here, resident here and employed while here, you're doing the work here and so income is taxed here. Your employer has to register locally as a employer and pay your taxes and NI here. This is good you need to pay NI to get free medical etc.

Foreign dividends are different though and not taxed and the law has various approved ways to handle that. PM me if you want a recommendation

Yves81 Active member

Member since 15 May 2016

Yves81Active member15 April 2017 03:30:16

You got it totaly wrong. A good overview: https://www.streber.st/2017/03/jurisdic … revisited/

volcane ViP

Member since 03 November 2015

volcaneViP15 April 2017 05:25:14

1075

Yves81 wrote:
You got it totaly wrong. A good overview: https://www.streber.st/2017/03/jurisdic … revisited/

The article says exactly what I did.

1: speak to a pro (you really should)
2: residents pay tax on earnings
3: the way corp taxes are effiently handled is via a 2 company method involving carefully chosen holding company jurisdiction owning a Maltese company. Thus making your profits foreign dividends.

It does *not* cover a non tiered company structure as you are enquiring about where there are no profit shifting and tax claim back involved. It could be that your situation allows things to work out esp if you're not a normal employee - but you really should speak to a specialist

Yves81 Active member

Member since 15 May 2016

Yves81Active member16 April 2017 12:06:51

Volcane, i meant the op not you with my " you got it all wrong" comment, because he mixed up some stuff/numbers.

The real problem is: I asked different lawyers for myself some time back and got totaly different answers on the question if i can run an offshore company and not pay any tax in Malta legaly.

I assume as an expat you can prob. get away with it because Malta does not care but for me personaly i decided its to risky.