Foreign Income Definition: Self-Employed Non-Dom Remote Work

Hi everyone,

the following scenario:

- German citizen moving to Malta >183 days etc choosing the Non-Dom Taxation
- self employed doing remote IT Consultancy / Server / Cloud services
- clients are mainly in the US along with their servers also being in the US
- the work i do usually evolves around work being done on their US based servers, only my laptop and body is physically present in Malta, nothing else, contract / server / client / payment etc has any connection to Malta
- money is being paid to my US bank account and not remitted (except for living expenses) to Malta

So question is:

- I register in Malta as self employed (sole trader?)

1) If i do work on my laptop for e.g. my US client on his US servers  and getting paid to my US bank account (the clients also dont have any presence  or any other connection to Malta) is this classified as foreign income / non remitted and as such not liable to any Malta taxation under Non-Dom?
If no, is the issue me being physically present in Malta although the work takes place on the US server? or is it being registered as self employed and as such all work connected to me is treated as local Malta income?

If any of this is the case:
2) If i fly to e.g. Spain for a week and do my work for the US client there, getting paid in the US etc pp would this then change things? It would surely be foreign income then but would it still be treated as local because of my self-employment registration in Malta? e.g. would really 100% need a foreign corporation so that "foreign income" under Non-Dom would actually take place?


Thanks a lot
Jack

Technically it's about where you are doing the work - first gets hitting the keys.

Best you speak to an accountant to see what situation apply to you. I too am a IT consultant with mainly US clients.

Yeah 1) will probably trigger "local income" but if i fly over to another country and do the work there e.g. 3 days of a week then it probably is foreign non remitted income. This is probably "foreign active income" which should be fine too.

Will update if i get more information.

you should speak to an accountant, its totally possible to do what you want - it's a complex business structure to maintain but if you're income is enough its worth it.

Yeah kind of hard to find one that has some real knowledge about this situation without just trying to extort you.

A DMCC company might be the better structure right away though. That would put an end to all "foreign sourced" questions.

Just wondered if that was really necessary of if a simple sole trader with the international clients and / or traveling out of the country to do the work would suffice.