Malta no dom - how it works?

[uranio]

Hello,
I'm trying to figure out how to get the no dom status on malta but I can't find full information aroud.
I'm European citizen.

Do i need open a Malta company to get the status?

I receive payments from USA and Europe.
I can deposit the pyments to bank accounts outisde Malta. I receive payments from company and private bank accounts.
I have a Delaware LLC and a UK LTD (that doesn't process much money), they're not related.

Can I move to Malta, rent, get status of no dom and just receive money to my bank accounts around the world? would I be 0% taxes with 5k euro over 35k?

Thank you for any help

 

[Martin Everson]

You don't need to do anything to get the status. You just move to Malta end off.

The status is just applied during end of year tax filing just like UK non-dom. When your filling in your Malta tax form at end of year you select it in question 4 on form. It's the same way in UK etc where you select remittance basis on tax form.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[uranio]

Martin Everson said:
You don't need to do anything to get the status. You just move to Malta end off.

The status is just applied during end of year tax filing just like UK non-dom. When your filling in your Malta tax form at end of year you select it in question 4 on form. It's the same way in UK etc where you select remittance basis on tax form.
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thank you for your answer.
So why many people do Malta company + holding company to pay 5% and not just use the no-dom status to get 0% (plus fees)

 

[Martin Everson]

uranio said:
So why many people do Malta company + holding company to pay 5% and not just use the no-dom status to get 0% (plus fees)
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Non-dom status and Malta company setup are totally separate issues.

People doing the Malta company setup are making use of Malta's full imputation system to get an effect corporate tax rate of 5%. It has nothing whatsoever to do with getting non-dom status. You do not need a company to get Malta non-dom status as someone from EU.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[uranio]

Martin Everson said:
Non-dom status and Malta company setup are totally separate issues.

People doing the Malta company setup are making use of Malta's full imputation system to get an effect corporate tax rate of 5%. It has nothing whatsoever to do with getting non-dom status. You do not need a company to get Malta non-dom status as someone from EU.
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Thank you for the clarification.

So, if I receive money to my LLC company, take money out to bank account in some country, move to Malta, rent a house (o can I just stay in hotel-airbnb few months?), I need to pay to Malta only 5000 (for over 35000 revenue outside) and nothing else right?
I can also go around the world and not need to stay 183 days on malta?

Last edited: Dec 20, 2023

 

[lacomaco]

uranio said:
Thank you for the clarification.

So, if I receive money to my LLC company, take money out to bank account in some country, move to Malta, rent a house (o can I just stay in hotel-airbnb few months?), I need to pay to Malta only 5000 (for over 35000 revenue outside) and nothing else right?
I can also go around the world and not need to stay 183 days on malta?
Click to expand...

Yes you need to get residency to claim the non-dom status, and there are several versions. Your citizenship could decide which permits you can receive

 

[Konstanz]

how long Malta non-dom is valid? Because in other countries usually there is time limit you can be non-dom

 

[lacomaco]

Konstanz said:
how long Malta non-dom is valid? Because in other countries usually there is time limit you can be non-dom
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The main concept of non-dom is that your stay in the country is "temporary" - even if it is 30 years - and you will return to another country to die. So your stay is not permanent. If you die in Malta the your inheritance could have a problem with the tax office claiming full taxation on your previously earned income. But of course it is Malta and I have never heard of such an enforcement

 

[uranio]

Do you have a official website of Malta to get the forms to ask this status?
Can I use an Airbnb or renting is mondatory?

 

[lacomaco]

uranio said:
Do you have a official website of Malta to get the forms to ask this status?
Can I use an Airbnb or renting is mondatory?
Click to expand...

You do not have special forms to “obtain” this status, you cannot register yourself as non-dom - you are or you aren't. Yiu must have a proper residency permit though

 

[Martin Everson]

uranio said:
So, if I receive money to my LLC company, take money out to bank account in some country, move to Malta, rent a house (o can I just stay in hotel-airbnb few months?), I need to pay to Malta only 5000 (for over 35000 revenue outside) and nothing else right?
Click to expand...

You need to be tax resident to owe tax. E-residency can and do ask you to prove your are actually resident from time to time. And that means showing expenses paid inside Malta from a bank (not in cash). Plus that excludes your normal rental contract that you can be asked to produce.

uranio said:
I can also go around the world and not need to stay 183 days on malta?
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Again you need to be tax resident in Malta. Your a non tax resident otherwise.

uranio said:
Do you have a official website of Malta to get the forms to ask this status?
Click to expand...

https://www.gov.mt/en/Life Events/Pages/Moving to Malta/Establishing-Residency.aspx

uranio said:
Can I use an Airbnb or renting is mondatory?
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If you coming as self sufficient then you need proof of sufficient income plus a rental agreement. If your coming as self employed then you need to show your registered with Jobsplus, Tax ID etc. It is down to e-residency department to decide if an airbnb agreement cuts it.

Bottom line don't do fake residency or try and be clever as if you ever get investigated its a wrap. Malta also has CFC rules with an exception for accounting profits of no more then 750k euro.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[Sols]

Konstanz said:
how long Malta non-dom is valid? Because in other countries usually there is time limit you can be non-dom
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There is no time limit for Malta non-dom. Although if you stay for a very long period (10-20 years), it might be a good idea to buy property outside of Malta or take other steps that indicate your stay in Malta is non-perpetual.

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This is the probably the answer to your question.

 

[uranio]

Martin Everson said:
You need to be tax resident to owe tax. E-residency can and do ask you to prove your are actually resident from time to time. And that means showing expenses paid inside Malta from a bank (not in cash). Plus that excludes your normal rental contract that you can be asked to produce.



Again you need to be tax resident in Malta. Your a non tax resident otherwise.




https://www.gov.mt/en/Life Events/Pages/Moving to Malta/Establishing-Residency.aspx



If you coming as self sufficient then you need proof of sufficient income plus a rental agreement. If your coming as self employed then you need to show your registered with Jobsplus, Tax ID etc. It is down to e-residency department to decide if an airbnb agreement cuts it.

Bottom line don't do fake residency or try and be clever as if you ever get investigated its a wrap. Malta also has CFC rules with an exception for accounting profits of no more then 750k euro.
Click to expand...

Thank you for the information, everything is more clear now. About going worlwide, just to clarify.
I take the e-residency on Malta by filling the forms and declaring I live in Malta.
Could after be tax resident on malta, just stay 2-3 months on Malta, and rest of the year around other countries without stay over 183 days in any country?

 

[Martin Everson]

uranio said:
Could after be tax resident on malta, just stay 2-3 months on Malta, and rest of the year around other countries without stay over 183 days in any country?
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In theory you can do this. Same with most countries as long as your not under investigation by tax office. However I would personally not do this. That's all I can say I am afraid. You make the choice yourself. I will leave it at that.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[JimBeam]

Martin Everson said:
You don't need to do anything to get the status. You just move to Malta end off.
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How about residency?
In order to get non-dom status you need to spend 183+ days in Malta. How to do that without a proper visa?
Do people open companies there to "employ" themselves so that they could get residency permit?

Martin Everson said:
If you coming as self sufficient then you need proof of sufficient income plus a rental agreement. If your coming as self employed then you need to show your registered with Jobsplus, Tax ID etc. It is down to e-residency department to decide if an airbnb agreement cuts it.
Click to expand...

If you own and are employed in US LLC , UK LTD, UAE FZ and but you stay 183+ days in Malta - you work from there.
Will that make your companies tax resident there?

Martin Everson said:
Malta also has CFC rules with an exception for accounting profits of no more then 750k euro.
Click to expand...

Could you please elaborate this.

Martin Everson said:
In theory you can do this. Same with most countries as long as your not under investigation by tax office. However I would personally not do this. That's all I can say I am afraid. You make the choice yourself. I will leave it at that.
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Maybe in this case Cyprus is better as you need to stay just 60 days.

 

[uranio]

JimBeam said:
How about residency?
In order to get non-dom status you need to spend 183+ days in Malta. How to do that without a proper visa?
Do people open companies there to "employ" themselves so that they could get residency permit?


If you own and are employed in US LLC , UK LTD, UAE FZ and but you stay 183+ days in Malta - you work from there.
Will that make your companies tax resident there?


Could you please elaborate this.


Maybe in this case Cyprus is better as you need to stay just 60 days.
Click to expand...

Malta doesn't require officially you stay 183 days, there is no minimum stay on malta requirements.

 

[Martin Everson]

JimBeam said:
How about residency?
In order to get non-dom status you need to spend 183+ days in Malta. How to do that without a proper visa?
Click to expand...

Sorry OP is from EU. EU has freedom of movement and no visa's required. You just turn up at Malta e-residency office with filled in forms for status you are applying for i.e self employed, self sufficient etc then you are given your ID card weeks later and away you go.

JimBeam said:
If you own and are employed in US LLC , UK LTD, UAE FZ and but you stay 183+ days in Malta - you work from there.
Will that make your companies tax resident there?
Click to expand...

Yes...Malta has CFC rules with threshold as I said.

JimBeam said:
Could you please elaborate this.
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Like how? That's pretty much it.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[speed]

adding to this thread as it seems active and relevant..

I am a UK resident / tax resident with a UK Ltd company (doing marketing agency work - OFM)
I have a Maltese residency card by way of brexit agreement but not Malta tax resi (got resi card at the time under self sufficiency rules)

How do I get to 0 / low tax on biz profits / income and reduce amount owed to UK to minimal?
I plan on living in Malta a fair bit of the year / travelling a little but not exceeding 5 months in any other particular country.

any insight would be much appreciated and my dm's are open 🙂

 

[Martin Everson]

speed said:
How do I get to 0 / low tax on biz profits / income and reduce amount owed to UK to minimal?
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Relocate yourself and business from UK to low tax or tax free country.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[GrumpyMess]

Martin Everson said:
The status is just applied during end of year tax filing just like UK non-dom. When your filling in your Malta tax form at end of year you select it in question 4 on form. It's the same way in UK etc where you select remittance basis on tax form.
Click to expand...

What is this form called? I can't find an example of this form