Malta - British Expat Forum

Dear Sirs,

A friend of mine wants to rent a home in Malta but doesn't want to be a Resident.

These are the Non resident tax rates according to the Inland revenue:
rate deduction
0 -700 0 0
701 -3,100 0.20 140
3,101 -7,800 0.30 450
7,801 & over 0.35 840

Is this correct? Because a resident pays 0 tax on the first 8500 Euros.

Thanks

I suggest emailing the inland revenue, or speaking to an accountant. Free advice can turn out being very expensive in the long run.

Thanks Gozomark.

I have found the following info:

"Non-resident individuals pay tax on their Malta-source income only; but local interest and royalty income are exempt from tax, as are capital gains on holdings in collective investment schemes or on securities as long as the underlying asset is not Maltese immovable property"

This makes sense because somebody with only a Holidayhome in Malta without being a Ordinary Resident would pay far more then a Resident.

So a Non resident can transfer without limits money into Malta and pay no tax whatsoever.

Regards

Ah, sorry I misunderstood your question - I thought your friend wanted to rent out a home, and so wanted to know about the tax situation on rental income if he wasn't a resident

If he is renting but not in Malta long enough to lose his tourist status ( ie less than 3 months at a time, and less than 6 months every calendar year), then AFAIK he will have no tax liability on money he brings into Malta.