Living and Working in Malta With My Own Internet Business?

Hi all,

I'm Rudolf, from the Netherlands and am thinking of living in Malta. One of my reasons is because the cost of living there is much lower, and taxes are flat rate 35%. And ofcourse because it's nice and sunny there, and there seems to be a good (online) business atmosphere. It *might* also be easier for me to work there due to my internet marketing experience. Additionally, I'm still living at home and want to get out of here as the situation is just.. not too optimal. Living on your own in the Netherlands is tough without working full-time, which would also immensely decrease time available to invest in my business.

Anyway.

I have some questions I couldn't find the answers of during my online search;

1. I'd still like to keep up a parttime job in Malta if I decide to live there, because my business income isn't high enough to cover the costs of living on Malta (I think). I've seen numbers of minimum wage on this forum going as low as ~4 Euro per hour. This worries me. I might be able to get a proper paying job, but if you lose it, or can't find one, you might have to settle for a lower paying job. Is it really that low? How is the current job market in Malta anyway?

2. In the Netherlands, I can earn money through my business with 0% taxes. Ofcourse you understand I really like this, and am wondering if the same is possible in Malta. The reason I got this exempt, is because with my online business, the customer transactions are being done in a foreign country (affiliate marketing), and I was wondering if Malta would offer something similar. If no one knows the answer to this question or isn't sure, would you know who to contact about this?

3. Furthermore, how long can you stay/work in Malta without having to dedicate your residence officially to Malta? In case things really don't work out, I'd like to go back to my home country without too much hassle.

4. Finally, can anyone give me a reasonably accurate number of the cost of living on Malta, when I choose to live cheap, but not as cheap that I will end up living in the slums (so to speak) and am able to entertain myself now and then (e.g. visit the beach, have lunch somewhere, a night out, etc.), not too often though.

I think that's all for now.

I thank anyone who can be of help in advance. :)

Regards, Rudolf

I really have some doubts of whether you must be paying 0% tax in the Netherlands. Even if your incomes comes from abroad the fact that you are managing and controlling your business from the Netherlands must have tax liabilities for you.

Malta is a tax friendly country and as many other countries there is a rule called "non remittance basis" where you do not pay money from the income generated from abroad as far as you do not receive that income in the first year. But it is not that simple. You have to check many things such as for example double tax treaties, etc. I believe that it is technically possible to "pay" 0% but you will need a very specific structure and those structures are usually expensive (from your comments I do not think that it would make sense for you to cost that structure).

Honestly I would really check your possible liabilities in the Netherlands. Indeed if you created a business in the Netherlands and you want to move it to another country you might have to pay an "exit tax". I am perfectly aware that the Netherlands has exit tax since there is a famous court ruling (National Grid Indus BV v Inspecteur van de Belastingdienst Rijnmond/kantoor Rotterdam) from the ECJ about the Dutch Exit Tax which consider it partially illegal, but I am not sure if that Exit Tax applies for you as a person owning the business if there is no company.

Apart from the above-mentioned the Netherlands also has an expatriation tax but I think that it would not apply in your case. http://en.wikipedia.org/wiki/Expatriati … etherlands

Hi Rudolph,

welcome to the forum.

Living cheap in Malta for an Expat would need an income of at least the average income for Malta. That is around 1000 € /month.

You can't work in Malta as a 'tourist'. That means you have the 3 months time limit to decide of you want to be a resident or leave.

What your tax situation will be be will depend on your personal issues and might need professional advice.

'Keeping up ' a part time job in MAlta will depend on your qualifications. The chances are that you will not find part-time work as the job market in general is not good. Don't be impressed by the low unemployed rates as they don't apply to foreigners. All Maltese dissappear from the statistics into some programme. Don't be fooled ! The official figures are not real .

Cheers
Ricky