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Money matters

Tax and NI in Malta

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Tax and NI in Malta

Postby fuzzypenguin » Fri 7 Feb 2014 15:12 GMT

My wife and I are currently making our medium to long term plans and I was wondering if someone could help me out with some info on National Insurance.

We are hoping to move to Malta either later this year or early 2015. We currently have couple of houses which we rent out and have an income of £1200 per month. These are in both of our names so hopefully we can claim 50% income each which would keep us under or around the €8500 a year tax threshold.

However, would we pay NI on this income too? This would be fine, as hopefully then we would be able to use the health service etc. But does anyone have an idea of how much it would be? I found a calculator here at www ird gov mt /services/ssccalculator.aspx which shows nearly €1500 is payable on €8500 profit, this is 17.5% which seems a bit steep.

Thanks in advance for your time reading / replying.
Paul
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Postby gozomark » Fri 7 Feb 2014 19:38 GMT

Welcome to the forum Paul :-)

If your income is predominantly non-earned, then its difficult to get 2 single tax allowances, you will generally be taxed under joint computation. Are the properties in Malta or the UK ?

You would not pay NI unless you elect to, but the rate you quote is about right as there is a minimum amount hence the apparently high percentage
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Postby fuzzypenguin » Tue 11 Feb 2014 07:39 GMT

Hi Mark,

Thanks for getting back to me. The properties are based in the UK.

The main reason for paying NI is to get a pension in the future and also have access to the health care system. I think we will have to look into it further to see if we would be getting enough money from the properties.

I am also a website developer, so would hopefully be carrying this on aswell, but the work would be on an adhoc basis, so income would possible be sporadic.
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Postby gozomark » Tue 11 Feb 2014 07:50 GMT

As the properties are in the UK, you will be taxed in Malta only on that rental income you bring into Malta. I'm not sure what tax liability you would have in the UK a non-resident landlord.

Healthcare - are you UK passport holders ? If so, you get some coverage to the public healthcare system though using the Malta-UK reciprocal agreement - details in the FAQ on moving to Malta

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

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 certificate ?
9. where can I get the residency application forms ?
10. where do I apply for my ID card ? - EDIT no longer applicable as ID cards no longer issued to foreigners
11. what documents do I need to apply for residency ?
12. can I vote in Malta ?
13.1 buying a property FAQ
13.2 selling 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 ?
17.1 Applying for driving licence
18. Long term residency certificate
19. EHIC
20. electricity/water bills - domestic v residential
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Postby fuzzypenguin » Tue 11 Feb 2014 10:31 GMT

Thanks again for the reply Mark, I think I will have to build up more freelancing work before we move over on a permanent basis, just to have different income streams.

Also, I will get in touch with the web development companies on Malta, to see if they need any freelancers from time to time. I am not really looking for a permanent job, but would be happy to work from home on short projects.
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