Two important aspects you need to mind:
1. Economic substance of your business locally in Malta to qualify for effective 5% corporate tax (6/7 Refund). I.e. the place of management and executive decision making needs to be Malta. While you've been spending a min. of 183 days in Malta as the resident director you've been meeting the economic substance requirement for the tax refund. Nowadays, it's even a joint︀ tax return your trading and holding company submits, to effectively pay 5% from the begin︁ with (i.e. not paying 35% and requesting 30% tax refund). I do assume you own︂ the holding with a foreign holding, to funnel dividends there.
2. Malta Non Dom Status︃ for your as an individual; maintaining Malta as your tax residency doesn't require you to︄ spend 183 days on the island, however, it is more so that you DO NOT︅ establish a tax residency outside of Malta. It would be fine to spend 60 days︆ in Malta, as long as you do not spend 183 days in another given jurisdiction︇ theoretically and practically establishing/triggering a tax residency elsewhere. Of course it's a different question of︈ enforcement. The Malta Non Dom is very powerful tax status as an individual, as you︉ not only can receive your foreign offshore income tax free as long as you don't︊ remit it to Malta, but you also don't need to declare it at all to︋ the tax offices in Malta. It is always advisable that you keep a local employment︌ salary from your trading company, as a min. of 5,000 EUR income needs to be︍ paid to be able to make use of the Malta Non Dom Status. You would︎ continue filing your tax normally to upkeep Malta as your main and ideally only tax️ residence. It definitely makes sense to still rent, that you have proof of paying locally.
In essence you can maintain your Malta Non Dom Status fairly easily, by avoiding establishing a tax residency outside of Malta. However with your current set up, the local economic substance of the business for the 5% corporate tax benefit is then not fulfilled anymore, and the trading would be then subject to 35% corporate tax, and your holding wouldn't qualify for the 30% tax refund anymore. And the whole double holding set up loses its purpose.
If you wanted to keep the 5% corporate tax benefit, you would need︀ to address the local substance aspect, so you may consider to hire a local director︁ who builds the substance for you. Obviously it's a trust thing with nominee director(s) in︂ place, as they are officially listed on Malta Business Registry, and they should not be︃ just a fake front, but practically be managerial executives involved in your business. Again, if︄ that's ever going to be challenged by Malta is another question.
What creatively comes into︅ my mind is, that depending upon your relationship to your local "trusted" accountants/auditors -- they︆ may be able to be provide local directorship, possibly their offices as a place of︇ management to build the substance.
1. Economic substance of your business locally in Malta to qualify for effective 5% corporate tax (6/7 Refund). I.e. the place of management and executive decision making needs to be Malta. While you've been spending a min. of 183 days in Malta as the resident director you've been meeting the economic substance requirement for the tax refund. Nowadays, it's even a joint︀ tax return your trading and holding company submits, to effectively pay 5% from the begin︁ with (i.e. not paying 35% and requesting 30% tax refund). I do assume you own︂ the holding with a foreign holding, to funnel dividends there.
2. Malta Non Dom Status︃ for your as an individual; maintaining Malta as your tax residency doesn't require you to︄ spend 183 days on the island, however, it is more so that you DO NOT︅ establish a tax residency outside of Malta. It would be fine to spend 60 days︆ in Malta, as long as you do not spend 183 days in another given jurisdiction︇ theoretically and practically establishing/triggering a tax residency elsewhere. Of course it's a different question of︈ enforcement. The Malta Non Dom is very powerful tax status as an individual, as you︉ not only can receive your foreign offshore income tax free as long as you don't︊ remit it to Malta, but you also don't need to declare it at all to︋ the tax offices in Malta. It is always advisable that you keep a local employment︌ salary from your trading company, as a min. of 5,000 EUR income needs to be︍ paid to be able to make use of the Malta Non Dom Status. You would︎ continue filing your tax normally to upkeep Malta as your main and ideally only tax️ residence. It definitely makes sense to still rent, that you have proof of paying locally.
In essence you can maintain your Malta Non Dom Status fairly easily, by avoiding establishing a tax residency outside of Malta. However with your current set up, the local economic substance of the business for the 5% corporate tax benefit is then not fulfilled anymore, and the trading would be then subject to 35% corporate tax, and your holding wouldn't qualify for the 30% tax refund anymore. And the whole double holding set up loses its purpose.
If you wanted to keep the 5% corporate tax benefit, you would need︀ to address the local substance aspect, so you may consider to hire a local director︁ who builds the substance for you. Obviously it's a trust thing with nominee director(s) in︂ place, as they are officially listed on Malta Business Registry, and they should not be︃ just a fake front, but practically be managerial executives involved in your business. Again, if︄ that's ever going to be challenged by Malta is another question.
What creatively comes into︅ my mind is, that depending upon your relationship to your local "trusted" accountants/auditors -- they︆ may be able to be provide local directorship, possibly their offices as a place of︇ management to build the substance.
