Freelance taxes in Malta

Your personal income tax will be in Malta if you spend 183 days in Malta.
You can use Maltese company as low-tax intermediary, but you still will be taxed in your country of residence.

thanks for the reply Spiridonov!
So the only option is to live in Malta for half a year if I want to pay my income taxes there?
Also, would I still be taxed in my country even if I don't live there and have no apartment there?

i would say there are timing domicle and residency issues and would definitely recommend seeing a tax specialist

Every country has its own tax rules. Yes, it's possible to be taxed in 2-3 different countries during the same year.

In most part of the countries, the tax residence depends on the number of days you've spent during the financial year. In most countries, the income from real estate properties is taxed in the location of the property. In many countries, the income raised in this country is taxed locally. But this is very basic.

Then there are important terms of 'domicile' and 'residence', which affect the taxation also.

And final cherry on the cake: after you pay all taxes in different countries, you can apply for double taxation treaties rules and refund some (or pay more sometimes)

Freelancer taxation in Lithuania is currently lower (or about the same) as in Malta btw. Malta is not a low tax country unless you have some serious savings and passive investment income (in which case see a tax specialist).

For example - everyone thinks that taxation in Spain is extortionate but even after accounting fees I ended up paying less in Spain last year than I did in Malta (2013). Overall my freelance taxes in Lithuania were the lowest of all three countries (but only just) at roughly 20% of gross income. In Spain I paid almost 23% and about the same in Malta.

It's really not that bad - pay your taxes and live happily. Tax mitigation is only a serious consideration if you're seriously wealthy. In which case seek professional advice.

Question:If I am working in a company in Malta as a freelancer, I signed a contract as a freelancer,how can I get my paycheck ?
I'm TCN national, company advised me to deliver 1 invoice per month from my home country from some company in order that they can justify the money they will give me (my paycheck amount will be on that invoice).
Is that Invoice has to be from the company that still excites for example? Or not? Or do they have to pay that invoice to my home country and someone send it back to me here????
And of course I would probably loose in transfer or paying tax.....etc in my country.

Or, when I sign contract as a freelancer , can they justify it like an expense in their books?and enclose (attach) the contract with it  ?
Thank you

It's a difficult question as TCN's are not allowed to work in Malta ( especially not as self-employed or freelance) without a work permit.

As the company is employing you illegally they will certainly not be able to put your pay as expenses in their official books and this is probably the reason why they want you to submit your invoice from a foreign country.

You will have to ask your company for more details about your employment and how you will get your money. The question that is related is about residency and health insurance in Malta .

Cheers
Ricky

in regards to tax issues, i would suggest you contact John Huber.. he was recommended on here a few years ago, and I can say that he put things straight (answered all the questions sufficiently etc)..

Friki,

You will issue the invoice every month from your home country to your Maltese company.
Officially you are not employed in Malta and there is no issue with 'employment', 'self-employment' etc

But there will be a problem with your residency in Malta. Since you are TCN and not employed - what would be the basis for your residence?