Tax rate

Hi Tuds,

welcome to the forum.

Not many people in Malta earn more than 70.000 GBP! That is about 7000 €/month.

These are the tax rates 2012:

http://www.ird.gov.mt/services/taxrates.aspx

Even if most of it is taxed at the highest tax band of 35 % it is a lot for Maltese circumstances.

The tax rate does not depend on whether you are Maltese or British.

Cheers
Ricky

Thank you for the speedy reply - I will be getting 500 euros per month for accommodation - is that a reasonable amount? How much are utilities?
I am currently living tax free in the Middle East so would need to see the comparison.
Many thanks!

Hi Tuds,

500 € for accommodation ? Depends what you are looking for. It will get you a nice furnished appartment in one of the nicer areas like Sliema. But top appartments with sea view can cost 1000-1500 €.

Utilities depends mainly on how much you use AC for heating and cooling. You could be looking at something like 100 €/month, maybe more if you use a lot of electricity.

Cheers
Ricky

joke ???
I wouldn't worry about accommodation and/or utility costs if earning over € 7,000 a month !

In your case you can also apply for a 15% flat tax rate on income.

It is not a joke! I am currently living in the Middle East and want to ensure that this would be the right move financially. Actually it is clear that it would work out at around 4600 pounds per month with accommodation etc to pay for - this is a great deal less than my current situation.

Malta is very very different ... and much cheaper at least than Doha

With your salary you can effort a more than comfortable way of living and esp. in your salary range the income tax is 35% but there are several (legal) ways of deductions and exemptions ...

I'm not sure you can apply for special tax status (i.e.lower tax rate) while working in Malta. Check the official website for information: http://www.ird.gov.mt/default.aspx
You can find out more specifically from any good fiscal adviser (law office) in Malta. Easy to find on the net, some have been recommended here and there in this forum in the past.

Get your employers to pay you as a freelancer? Set-up two ltd companies and reduce your tax to 5% plus admin costs for the structures. I dont believe IR35 exists in Malta.

Talk to an accountant! Make sure you're not classified as Maltese domiciled...

good luck

Thanks for all the advice! I think I will have to consider this opportunity seriously considering the tax implications, maybe the Middle East will be home for a while!

all id say is Malta isnt everyones cup of tea...it can be heaven to some and hell to others - unless you have been here and sampled "life" not holiday...then its diffcult to advise - money and all that it gives you here isnt everything. all the cash in the world wont make a difference if you hate the place.

My mother is Maltese and all my family are there so I know it very well.  I agree that you need to be happy where you live but with financial commitments you do need to make the right choices.

abso

Tuds wrote:

My mother is Maltese and all my family are there so I know it very well.  I agree that you need to be happy where you live but with financial commitments you do need to make the right choices.

absolutely - good luck

Hi Tuds, I would recommend you to seek advice by tax experts (I am not). I think you can pay just 15% flat tax rate. If your incomes come from abroad there is even a better thing which is that you can even not pay anything as far as you do not receive the money in the first year in a Maltese bank account (that is called "non remittance basis" and is very common in Commonwealth countries). But if you are working for a Maltese company the general rule is that you have to pay the 35%. Now, you can just pay 15% if you earn more than 75000 €/yr (which you'd be doing)  and you work as Chief Executive Officer, Chief Risk Officer, Chief Financial Officer, Chief Operations Officer, Chief Technology Officer, Portfolio Manager, Chief Investment Officer, Senior Trader/Trader, Senior Analyst (including Structuring Professional), Actuarial Professional, Chief Underwriting Officer, Chief Insurance Technical Officer, Head of Marketing or Head of Investor Relation. Not sure if that it is only valid for the igaming or financial sector (anyway very likely you will be working on any of those two sectors according to your salary). Related info: http://www.anchor.com.mt/news/?article= … ax-workers

You would also have to pay 10% social security but it is limited at around 1700€/yr so you will not pay the 10%, much less (according to your salary it would be around 2% or so). The good thing of that payment is that you will get social security benefits, which I am not sure you have in Doha, and your contributions would be valid for you in all the European Union (in case you move again to another EU country).

brayster99 wrote:

Set-up two ltd companies

Why 2 Ltd's instead of one?

Anyway the problem she will have with that is once she being a Maltese tax resident receives the money from her company she will have to pay again the same (35% or whatever minus the 5% already paid). Also we do not know whether the company would allow her to pay her in that way and obviously her company would have a "few" costs -costs probably worthy-.