Tax exemption on income produced outside Malta (?)

Welcome to the Forum

May this link will help you > https://europa.eu/youreurope/citizens/w … dex_en.htm

Thanks a lot for the clarification SimCityAT so I got the reply I was looking for, basically my income produced outside Malta and never carried to the country will not get taxed in Malta.

If I'll establish my permanent domicile in Malta, is there still any advantage related to income produced outside Malta and never carried to the country or if will be subjected to the standard rates ?

Note that if your worldwide income exceeds €35000 you will be taxed the sum of €5000, however, tax paid at source can normally be offset against tax due here.
Below the €35000 it is normal to only be taxed on monies remitted to Malta (monies from capital are exempt) or earned here. Again tax paid at source can usually be offset.

roughly yes, many ifs and buts and so forth.  Suggest you speak with a specialist accountant, when we navigated this we visited one and their advise at the time were free so its really easy to have a face to face and talk through your situation.

pm me if you need names of who I used

I agree in full to pay Eur 5k/year considering I'll earn more than Eur 35k outside Malta and my intention is to do things properly in the most transparent manner.
I'm not trying to elude taxes just looking for legal ways to reduce them as much as possible.

Volcane, I'm a new member and probably I'm not yet authorized to send PM because I can't find an option to do that but I'd like to know the accountant from whom you got your free advice.
May you kindly email me his data maybe ?***  or just PM me (I should be able to get incoming messages I think).
Thanks in advance for your kind assistance.

Hi there,
I don't know if you already decided to move to Malta.
I'm considering it seriously.

I'm a freelancer in Belgium and I have 3 clients I can keep serving from abroad.

I've read a lot about the tax system and it's pretty clear, except the fact that income from out of Malta is not taxed as you don't transfer it to Malta.
But I don't get it. So: I live in Malta, but I have to keep a company in Belgium to make invoices to my clients and make them pay on a Belgian bank account? Then I will be taxed in Belgium on this income, right? So it's a bit weird for me, can someone explain me better how it works?

thank you so much.

I've been in Malta last December and I talked to a couple of tax consultants but I didn't move there yet because my plan was to travel and to visit few other countries before choosing the new destination for my new life ... The Covid19 is now keeping me quarantined at home so I'll need to wait that anything will be back to the normal life before continuing.

Well, if you'll fix your tax residency in Malta and you'll NOT stay in Belgium for more than 180 days per year, you'll not pay any tax in your country but it's important to clarify all online activities (if this's your case) are subject to a 5% tax because Malta asserts that you're working by using a computer physically located in Malta.

Things are a bit more complex: you'll be taxed for 35% and you'll need to legally setup your Malta company and an holding company.
Every time you'll have declared your taxes, the holding company will claim back 30% of what you paid so you'll basically get taxed at a mere 5% on your external online income.
If you earn offline and outside Malta, you'll not get taxed but you'll need to proof that and this's not so easy as we may think.

There's another alternative in the middle: you can setup a simple Malta company (+ the holding company to claim part of your taxes back) and reporting your dividends in Belgium.
You'll pay 5% to Malta + ??% in your country (you should ask to your tax consultant what's the % applied on dividends coming from a foreign company).
In this way, you'll not need to leave your country.

I'm not a tax expert and I'm just expressing a mere opinion basing on what I understood of the whole process so you should hear someone more qualified than me before making a decision on how moving forward.

Thank you so much.
The activity I do: I manage 3 small companies, but I'l do this like 75% online through slack, zoom, phone... My plan is to stay 2 weeks in Malta and come over 1 week for meetings in person,... So the earnings will not be fully online , not fully offline and part of it in Belgium, part in Malta.

So I think i'll have to set up a company and a holding to recover my tax.
But at the end my winnings will be in the holding company and I'll need them in person. So I still pay 35% tax on it?