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Money matters

Is this correct......

No, really... it does!
But does it matter more in Malta than at home?

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Is this correct......

Postby Rachy » Fri 14 Jan 2011 06:55 GMT

Hi,

This comment was in response to the Times of Malta feature about Malta being the best place for ex pats to live:

"I believe 15% flat tax is a on a specific visa type for foreign investors in Malta only. It appears lower than the rate ordinary residents pay but is effectively higher as they receive little in return save the right to remain in Malta. Those taxed at 15% are not allowed to work (investment/foreign income only), partake of public healthcare/education, and are required to rent/buy property worth a certain value. A lot of people on the 15% rate don't even live in Malta, they just use it to invest in Maltese businesses - it's a good earner for the government."

Is this to do with the Ordinary Residency vrs Permanent Residency issues that pop up on the boards here from time to time. I have been under the impression that OR is the best to go for.

Thanks,

Rachel
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Postby boogiewoogie » Fri 14 Jan 2011 09:35 GMT

yes this would be referring to PR, and unless you have a few mill' tucked in your back pocket OR will be the way to go almost definitely. You also have to remit a certain amount to Malta every year with PR. The 15% tax rate looks great until you realise you don't get any zero rated allowance so it takes a lot of income per year until you break even. Bearing in mind that there is no need to remit any income to Malta as an OR.
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Postby Rachy » Fri 14 Jan 2011 09:41 GMT

Phew - thanks. I thought that after sifting through everything and thinking I had it right, after reading the comment I thought I had it wrong!

Thanks for your help,

R
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Postby boogiewoogie » Fri 14 Jan 2011 10:37 GMT

It annoys me that so many estate agent websites push the PR as the only way forward too, before I found this site I didn't think there was another option. Thank goodness for this site and all who post on her(minus the odd troll natch).
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Postby Rachy » Fri 14 Jan 2011 10:41 GMT

LOL! There's gotta be a troll every now and then. Agree with you though, the terminology used makes you think that PR would be what you should have - I think the only benfit I have seen (and this may be a myth) was that you can bring a car over.
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Postby gozomark » Fri 14 Jan 2011 10:42 GMT

PR has a min tax bill of about € 4,200 per annum. I suspect estate agents pushing it do so for a couple of reasons

1. looking for referral income from an accountant
2. for historical reasons - pre-EU, it was the only way to have a guaranteed long term residency permit - otherwise you had to get a 6 month visa, and you could find they refused ti extend it without any warning or justification.
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Postby wendy.bruce2 » Fri 18 Feb 2011 18:40 GMT

What percentage of tax do OR residents pay, if any? Is it true that if you have PR that you cannot claim free healthcare?
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Postby gozomark » Fri 18 Feb 2011 18:47 GMT

OR pay tax on the standard income tax thresholds, based on income earnt in, or brought into Malta

PR - used to include free healthcare, I think still does
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Postby gozomark » Fri 18 Feb 2011 18:49 GMT

tax - you can also offset tax already paid overseas, if there is a double taxation treaty between that country and Malta
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Postby gozomark » Fri 18 Feb 2011 18:52 GMT

for thresholds, see 7.1 in thread below

EU citizen moving to Malta Q&A

http://britishexpat.com/expatforum/malt ... hp?t=21114

covers

1. An EU citizens legal rights - residency, working, students
2. what sort of residency is available ?
3. what do I need to apply for if I want to reside in Malta ?
4. do I need to apply for residency before coming to live in Malta ?
5. do I need an accountant to apply for residency ?
6. do I need health insurance ?
6.1 Do I qualify for public health cover, and if I do, what cover do I have ? Are prescriptions free ?
7. can I work in Malta ?
7.1 How much is income tax ?
7.2 How much are social security contributions ?
8. where do I apply for my residency permit ?
9. where can I get the OR application form ?
10. where do I apply for my ID card ?
11. what documents do I need to apply for OR ?
12. can I vote in Malta ?
13. buying a property FAQ
14. renting a property FAQ
15. Importing a vehicle FAQ
16. What's the procedure for importing/exporting a pet ?
17. Can I use my driving licence in Malta ?
18. Long term residency permit
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Postby wendy.bruce2 » Fri 18 Feb 2011 19:22 GMT

Thanks Mark, I will go and see an accountant.
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Postby gozomark » Fri 18 Feb 2011 19:36 GMT

Can highly recommend the one I (and several others on BE) use
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Postby wendy.bruce2 » Fri 18 Feb 2011 19:51 GMT

Yes, I have already taken note of your recommendations thanks.
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