Future Expat wonders about a real need for a Maltese Bank Account?

Certainly no need for it. No taxes either on ATM withdrawals.
Perhaps your US bank will charge something?

Thank you for the timely, informative response.

No, my bank (credit union actually) won't charge me a fee on their end.

Another point I forgot to ask you - is there still a withdrawal limit of 400.00 Euro per transaction at the ATM?

Wouldn't it be nice to be able to make one big one that would last the entire month? That's how the banks are able to make some considerable amount of money  - transaction fees, hence the reason for the withdrawal limitation.

Hi Filippo,

if you are living on a monastic budget 400 € is more than enough to live on fruit and vegatables and to live in a monastery.

Forget your US status. As an EU citizen ( Italian) you can get residency with the minimal Maltese income. You will have to show your source of income! After that no one cares how you get your money to Malta. Your tax issue is your own problem !

Cheers
Ricky

ATM withdrawals are declarable in your annual Maltese tax return, IF they are from income generated overseas ie in the same way as if you brought foreign income into a Maltese bank account

do you need a local bank account ? there is no legal requirement, but it can come in handy if you need to pay bills by cheque

xxx .........will explain this edit later.

I cannot understand where on earth you got the ideas you have and the conclusions you have drawn from. 
To abide by the law, (your choice), you should register for tax and apply for E-residence by the time 90 days are up and if self sufficient prove you have the means to sustain yourself. It is of course possible to just turn up and live your way but consider this; what if you have health issues? What if you are involved in any incident that attracts Police attention? What if you need help sometime? If you do not comply, technically, you would be an illegal immigrant.
Read this  https://www.expat.com/forum/viewtopic.php?id=370643 then read it again and then decide if you are going to abide by the law.

redmik

I think you completely misunderstood me. Of course I intend to fully comply with the requirements of living there. Why wouldn't I? I understand very well what's required of me after a three month stay and I am surprised at your accusations that I intend to not follow the law.

I was trying to find out what taxes I would have to pay - if any - upon withdrawal of monies from an ATM. I got no real answer. In fact I couldn't get any clear answers on financial questions regarding the advantages of opening a bank account or not because I considered moving my savings from the US to a Maltese bank possibly with no taxation consequences. One person said "your on your own" when it comes to questions about taxes.

As for the link you provided - 'EU Citizens e-residency process & Health Care info'.

I am already quite familiar with it! And it doesn't answer all my questions.

There is no tax on withdrawals from an ATM

There is a potential tax liability on bringing income into Malta, whether by ATM, bringing in physical cash when you fly in, or by transferring money into a bank account.

georgeingozo wrote:

There is no tax on withdrawals from an ATM

There is a potential tax liability on bringing income into Malta, whether by ATM, bringing in physical cash when you fly in, or by transferring money into a bank account.

Yes........and that's why I was saying that - in my case - that I think I'm better off just handling all money matters by way of ATM - keeping things simple.

Having a Maltese bank account makes no difference to whether you will owe tax in Malta.

Tax liability depends on 2 things

1. were you in Malta for more than 180 days in a calender year ? If yes, you have to fill in a tax return
2. did you earn money in Malta, or did you bring income into Malta in excess of your tax free allowance ? if yes, you owe tax (subject to deducting tax already paid on it if a double taxation agreement applies, or if tax already paid on any income earned in Malta)

georgeingozo wrote:

Having a Maltese bank account makes no difference to whether you will owe tax in Malta.

Tax liability depends on 2 things

1. were you in Malta for more than 180 days in a calender year ? If yes, you have to fill in a tax return
2. did you earn money in Malta, or did you bring income into Malta in excess of your tax free allowance ? if yes, you owe tax (subject to deducting tax already paid on it if a double taxation agreement applies, or if tax already paid on any income earned in Malta)

Thank you.......that is precisely the kind of response that I was hoping for. It answers everything I needed to know. Now I have enough information - financially speaking - to be able to proceed with confidence.

AmerigoFilippo    I see that you were able to edit the post in which you stated you had no need to pay any taxes etc.
I did not state you intended to not follow the law. What I said was if you did not do certain things you would not be and that was your choice.
Also, by what you posted (and state din that post since removed), I concluded that you had not understood what you had been informed, which was contained in that article, which if you had read, you would not have stated what you did.
Nor would you have had to ask the questions you did.
I would remind you:........................

Everyone is required to register for Income Tax if you are resident on Malta.  In general, individuals are considered to be resident in Malta if they spend more than 183 days in a calendar year in Malta. (Whether you are liable to pay any tax will depend upon your circumstances.)
Quote:
An individual, who is either resident in Malta or domiciled in Malta, but not both, is subject to tax on income arising in Malta, on income arising abroad but received in Malta, and on capital gains arising in Malta. Individuals who are neither resident in Malta nor domiciled in Malta (temporary residents) are subject to tax only on income and capital gains arising in Malta.
This includes the use of Credit/Debit cards connected with any bank outside Malta.
Transfer of savings does not (usually) attract tax.


That is precisely why I wrote that article and precisely why I responded in the manner I did.

I'm moving to Malta shortly 6 months initially but hoping long term. The only income I receive woukd be my UK pension (I'm 44 pensioned on medical grounds). I get taxed in UK - am planning on leaving uk account open & just using the cash passport. Will I have to pay tax again in Malta? Many thanks for your advice

Hi Aly, it is highly unlikely if that is your only source of declared income remitted to Malta. Both my wife and I are in the same situation (both early pensioned) and we did not have to pay Malta Tax for the last assessment year as we were below the threshold.
(I have to conclude that as I have received no notice back from the Tax Office after submitting my return some months ago. No surprises there!)

Current rates are shown here: http://www.ird.gov.mt/services/taxrates.aspx

Please read the contents of my previous post to AmerigoFilippo and you may find this useful:

https://www.expat.com/forum/viewtopic.php?id=370643

Without going into technicalities there is also a double tax relief agreement with many countries, including the UK.

Also, be prepared to have to complete self assessment tax returns for both UK & Malta, which have different tax years and don't forget to inform HMRC etc.

Thank you Redmik so much to think of it's hard to get your head round it all! Will read the links and thanks again 😃

Thank you Aly, any questions just ask. Many others here are able to advise.

This site has helped me no end - my car sailed to Malta yesterday! I'm looking forward to meeting knew people when I arrive in Marsascala on 16/10. Just need to sort the school out but can't do that until I'm there in person. Thanks again

be prepared to have even more fun registering your car in Malta - good luck

Lol yes I'm sure that will be fun - have European insurance so believe I have 6 months within to register it

AmerigoFilippo wrote:

xxx .........will explain this edit later.

AmerigoFilippo wrote:

Well, from all that I have been able to ascertain - as a retired resident citizen of Malta by way of my membership in the European Union I am free to live as I please. I will be able to live in Malta with no financial or living problems whatsoever in much the same way as when I lived in Rome i.e., hassle free, with no concerns regarding apartment rental or property ownership, banking or income taxes, with all monetary transactions done through the ATM with bill payment done through Postal Money Orders, and no need to even file any income tax forms at all. Thank you for all the helpful input.

The above post was taken down temporarily because I wanted to avoid any further accusations against my good character. see here https://www.expat.com/forum/viewtopic.p … 85#2183344
Besides, I needed some time to think a few things over such as deciding whether I wanted to continue posting in this Forum.

My comments about taxes were in regard to my overall personal financial status, which I will not disclose in an open forum. But I can assure you that I am not in a taxable category as far as Malta is concerned. As I mentioned in my opening post ...   ...   ..."Having no business dealings or employment issues to be concerned about," as well as no other kinds of earnings taxable as 'income' taking place under the Maltese flag.

Those personal comments are all absolutely true to heart and were made apart from my general understanding of the law and of a keen awareness of my own particular responsibilities to the government of Malta upon entry onto the islands. This includes everything from application for medical coverage to filing the proper forms regarding 'possible,' but highly improbable levies of taxation. For anyone to imply otherwise would be guilty of a prejudicial sentiment: and in this case perhaps a decidedly anti American one; after all, how could one but think otherwise.

Filippo, this forum is normally a really nice place to ask all sorts of questions. I don't know what happened here.
I think you best find a good taxation lawyer to sort things out for you.
Malta is a very simple jurisdiction tax wise. You only pay tax on income, not on capital. So you can transfer as much capital as you like to Malta and you don't need to pay any taxes on it.
Your money is considered capital if it has been in your account for over two years, I believe, could be even shorter.

Many people live here (perfectly legal) and don't pay any taxes at all.

Seat 0A wrote:

Filippo, this forum is normally a really nice place to ask all sorts of questions. I don't know what happened here.

OK I'll tell you "what happened here" - in the "redmik" posting below, coupled with his misunderstanding of what I said - I was accused of potential malingering and of trying to "game the system" - you know, of 'getting-over' and/or attempting to hoodwink the Maltese authorities.

I tried to explain that I was being misunderstood regarding my inquiries about taxation in these Forum(s), but the 'accuser' would have none of it, so I concluded from that that I was a victim of prejudice - anti American or otherwise it makes no difference.

Of course his charges against me made me very upset to the point of taking a rigorous stand against the accuser, who actually states in the post below that it was my direct intention to ignore all of the requirements of law and of the state with respect to becoming a "citizen in good standing" in the nation of Malta.
---------------------------------------------------------
Please know that I surely am not in need of a tax lawyer, but because of the abuse that I was subjected to I have decided to look elsewhere for answers to basic, but important questions such as taxation and general money matters.

redmik wrote:

I cannot understand where on earth you got the ideas you have and the conclusions you have drawn from. 
To abide by the law, (your choice), you should register for tax and apply for E-residence by the time 90 days are up and if self sufficient prove you have the means to sustain yourself. It is of course possible to just turn up and live your way but consider this; what if you have health issues? What if you are involved in any incident that attracts Police attention? What if you need help sometime? If you do not comply, technically, you would be an illegal immigrant.
Read this  https://www.expat.com/forum/viewtopic.php?id=370643 then read it again and then decide if you are going to abide by the law.

Amerigo, that is your interpretation, no one accused you of anything.
My response was in reference to what you wrote and I quote 'and no need to even file any income tax forms at all'
If you follow due process and register for tax, which is a requirement, you will have to, even if you end up not paying any tax.
As I also wrote; 'it's your choice'.
You have, in my opinion, blown this all out of proportion.
Also DO NOT accuse me of prejudice against you. I resent that as how could I have? I do not even know you.

Sahha.

Filippo, you might live a "monastic" lifestyle, but your replies seem a bit agitated.
Tale a step back, relax, and you"ll see that nobody here is prejudiced. Not a very strong position to take in your argumentation.
I wish you all the best.

Ha ha , I wouldn't worry about it Fillipo , if you follow this forum long enough , you'll soon realise that Redmik could start an argument in an empty room !!!!😀 - keep asking your questions though , you'll find plenty of helpful people and generally sound advice 👍

   RR

GBS14 wrote:

Ha ha , I wouldn't worry about it Fillipo , if you follow this forum long enough , you'll soon realise that Redmik could start an argument in an empty room !!!!😀 - keep asking your questions though , you'll find plenty of helpful people and generally sound advice 👍

Thanks for that....

GBS14 wrote:

Ha ha , I wouldn't worry about it Fillipo , if you follow this forum long enough , you'll soon realise that Redmik could start an argument in an empty room !!!!😀 - keep asking your questions though , you'll find plenty of helpful people and generally sound advice 👍

Usually because people do not read and comprehend correctly the information that is posted.
Or, do not accept that the stated information, given with good intent, is not what they want to read or accept.
Or, make asinine comments on a subject, about which, they know nothing.
I note your one and only contribution is contentious itself.
Are you a Troll? Seems like it to me.
If not, how about giving us all the benefit of your advice?

Roger Rabat wrote:

   RR

Oh, you're so fickle!   

You see ? - there you go again , always the confrontational / argumentative response !!! - No , I'm not a troll but having lived and worked in Malta and followed this forum for some time , I'm amazed at the amount of people that you seem to upset or irritate with your curt , often downright rude replys !!! - You don't even know these people , they come on here for advice and support and end up getting an earful off you , for their troubles !!! - There's no need for it , everyone else seems to give advice without upsetting anyone and let's face it , is it really worth getting upset about ? - just relax , you live in the sun , enjoy ......and above all else ....... BE NICE !!!!😀👍

Just standing up for myself against unwarranted and sh1t stirring comments. Nothing to do with you is it really?

Look , no one is having a go at you or sh1t stirring! - but you do have an unfortunate habit of getting people's backs up with the WAY you respond to their questions! - you could have said the same thing in another way and avoided being accused of God knows what !!! - look back at your 1st response to Fillippo's question !!! - talk about getting off on the wrong foot !!!! - You just seem to come across as a bit grouchy and it's a shame because you do have a lot of good advice and knowledge to share but it's the delivery of that advice that seems to be the problem!!!!

It's called " self-awareness " 😀👍

If you read carefully, my response, you will see that it was a reply to what was posted and then deleted.
It was then explained later.
However, it was obvious that he had got in mind that he did not have to complete any tax returns. (His words.)
That was incorrect but as I stated, his choice.
Now, that was not rude or impolite.
When people ask questions they need facts, unless they ask for opinions.
This is not a chat forum. I am not in the habit of misleading people simply to pander to their dreams.
Better to face the reality than be misled and make what could be disastrous and expensive decisions.
I am happy, my family and friends are happy and the many I have helped, over a life time are happy.
Being upfront and honest is they way to be, even if some do not like it.
I now suggest if you wish to continue this discussion we do so privately as this is not the place to do it.

GBS14 wrote:

It's called " self-awareness " 😀👍

Thank you for that patronising comment and for giving me the benefit of your insight.
I am fully aware of that and many other aspects of self knowledge, personal development and emotional IQ from my previous professional and post graduate training, practice and my own teaching on those subjects.
As I say, this is nothing to do with you and you have nothing to do with me.
Go practise your 'counselling' on someone else.

"This is not a chat forum"

Why is it called Expat.com then?

Terry

tearnet wrote:

"This is not a chat forum"
Why is it called Expat.com then?
Terry

From the Forum Title Page

Expat forum
Ask your questions and share your experience on life abroad.

So, not exactly Facebook, is it?
Obviously some chat here but should only be relevant to the subject matter, no?
If it is for chit chat, then I stand corrected.

its a sort of chat really innit