Tax and pensions

You are taxed on monies remitted to Malta but if it is from capital this does not count. You have to register for tax here and complete an annual tax return.
The tax allowances here are nowhere near as generous as the UK at around €9000 each compared with what I believe is now about £11,000 (€12,500 ) in the UK!

We are now in our sixth year here and have been written off the Inland Revenue system in the UK. But it does not really matter as there is a double taxation arrangement whereby tax paid in the UK can be offset against your liability here.

Ray

Thanks for your reply Ray,

I assume that means any money you earn over 9000 euro on your pensions is taxed at 15% if it is sent to Malta?  Is it possible to leave your pension money in the UK or does that pose more problems?

What is the double taxation agreement by the way? How does that work?

Kind Regards

Ian/Carol

We like a lot of expats have our pensions paid into our UK accounts and use TransferWise to pay the money into our account here as the exchange rate is better.

Thanks Ray, that was informative. We have a number more questions obviously but will leave that to another time

Regards

Ian/Carol

Dunshall wrote:

Thanks for your reply Ray,

I assume that means any money you earn over 9000 euro on your pensions is taxed at 15% if it is sent to Malta?  Is it possible to leave your pension money in the UK or does that pose more problems?

What is the double taxation agreement by the way? How does that work?

Kind Regards

Ian/Carol

Not 100% sure on Double Taxation, but as far as I know if you remit money to Malta and become liable for tax on it then you can set tax already paid on it in the UK against your liability here. I am sure there are many on this Forum who can tell you how it works.

Our pensions are not taxed in the UK as they do not exceed UK allowances and so HMRC have told us we no longer need to submit a return there, we just try and bring as little over the Maltese tax allowances as possible so as to minimise any liability here.

As GozoMo said above, it is better to use a company like Transferwise to convert and transfer funds, a far better rate than mainstream banks.
I also have their border-less bank accounts and have a Euro account in Munich as well as my bank in Malta.

Ray

Note they just amended tax laws which MAY mean some minimum tax, waiting to hear back from my accountants with the full story

I am maltese whose sole income is an old age pension from Aus Govt. I get about 9000E tax free & pay tax on the rest @ 15 %. But recently I have had demands from tax office for provisional tax for the same period  1 year in advance so effectivly paying tax 18 months in advance.