Incorporate in Estonia, Residence in Malta

[JustAnotherNomad]

Dividends will always first be taxed in Estonia, then potentially a second time somewhere else.‌ The way they do that is that it’s officially not a tax on dividends, but‍ a deferred corporate income tax. Estonia is not a tax haven.

 

[lonizzita]

[No content provided]

 

[JustAnotherNomad]

If you work from Malta, the income will probably be considered as locally sourced and‌ subject to Maltese tax. But I don’t know a lot about Malta. This setup just‍ doesn’t seem like a very good idea to me.
Why do you want to move⁠ to Malta?

 

[lory]

is that really required. If you have to spend 50K you⁠ will need to have a big business there otherwise it looks like not making much⁤ sense.

 

[Dandyline]

Just have company and residency in Estonia and live in Malta without visa. If you‌ are EU citizen of course.

 

[lonizzita]

do you intend to also‍ take personal residence in Estonia and remove the Maltese one?

 

[biz1]

Why don't you simply set up your business in Malta? Normally a Maltese company that‌ owns a Maltese company in Malta will only have like 5% total corp tax rate..‍ isn't there a way to make it 5% total here, no additional personal taxes for⁠ the Maltese resident?

Also, with your suggested Estonia setup, if you would spend 179 days⁤ a year operating that business from Estonia and have 183 days a year vacation in⁣ Malta, I'm thinking the classification that the Estonia business "would be taxed in Malta too"⁢ should not apply, though not sure - anyone thouhgts?

Tax Cow, what in the Estonia-Malta DTA is it you are thinking of, is there some︆ company tax residency clause in there, what does it say?

Anyhow off hand I don't︇ understand why Estonia is needed at all if you're going to Malta anyhow, which has︈ good structural options already.

 

[Martin Everson]

I think people are overthinking the issue. If he moves to Malta just stay below‌ the CFC threshold and declare everything.