There are different possibilities to save taxes, which depend on the individual situation of the person or company. In this article, I would like to explain a little more about the situation for individuals who would like to save taxes by moving to Malta.
If you would like to save taxes you can opt for a move to Malta in order to save money with the low income tax rates, and lower cost of living than in many other countries. However, moving to Malta in order to save taxes means also that you are not allowed to stay in another country for more than 183 days. Your primary residence needs to be in Malta, which by the way is a lovely country.
In order for you to not have any obligations with the tax authorities of your home country anymore, you will have to inform the authorities about your move. Your income is then taxed where it is generated. Income from your home country, which is generated there (for example income from letting or income from a business) will generally be subject to tax laws of that country. However, your personal income is subject to Maltese tax laws if generated in Malta. Malta has over 50 double taxation treaties, which ensure that your income is only taxed once. The income tax in Malta is between 15% and 29% for income below €60,000. This will be lowered in 2015 to 25%. Income over €60,000 is taxed at 35%.
A move to Malta can be worth it in many cases, especially since there is freedom of movement within the European Union. If you are not a citizen of a country in the EU, the Global Residence Programme might be for you. It can help you save taxes by moving to Malta. Whether or not a move to Malta is worth it for you depends on the individual case, which we can assess in a personal consultation at the office of Dr Werner & Partner in Malta. We advise individuals and companies about their possibilities for tax optimisation that a move to Malta can offer.
