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British Pensioners in Malta/Gozo

Re: Tax on Pensions & Residency

Many of our members are pensioners, so here's a place to discuss the relevant issues.

Re: Tax on Pensions & Residency

Postby Malkity » Wed 18 Jun 2008 20:37 GMT

I've been reading the posts on this forum and they're all dated 2006. Could someone please give me the picture for 2008. We are British citzen's, lived in USA for 27 years, now living in Panama, Central America. We get government pensions from Britain & USA and don't want to have to pay 15% on our limited income! Thanks
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Postby gozomark » Wed 18 Jun 2008 20:41 GMT

basically there has been little change sincxe 2006

by 15% tax presumably you are referring to the permanent residency (PR) tax rate

As you are EU citizens, you don't need to take PR - take ordinary residency, and you should be able to pay much less tax
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Tax

Postby Malkity » Wed 18 Jun 2008 21:20 GMT

Thank you. I was confused about the residency part. As each country we've lived in, we've had to take permanent residency. Forgot to ask what the 'normal' tax on a pension would be?
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Postby gozomark » Wed 18 Jun 2008 21:31 GMT

PR in Malta is not what it seems - its not about permanency and its not about residency

http://www.britishexpat.com/expatforum/ ... hp?t=19756
the above hopefully will clarify - Tim's second post is a great starter, part is cut and pasted below

"The phrases 'Permanent Resident' and 'Temporary Resident' intuitively mean something very clear, obvious and simple to most of us but, as legal terms in the Maltese context, they can mean practically the opposite. You can land in the morning, sign a handful of papers, open a bank account and leave in the afternoon, with no intention of ever returning to Malta, yet as long as your agent buys a pad for you within a year, you will be a Permanent Resident! You've never seen your property and you've never spent a night in the country, but you get the tax breaks."
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Re: Tax & Residency

Postby Malkity » Fri 20 Jun 2008 19:39 GMT

Thanks. I read Tim's whole post and assume that is still current, as it was posted in 2005.
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Re: Tax

Postby johnofessex » Fri 20 Jun 2008 20:50 GMT

pangirl wrote:Forgot to ask what the 'normal' tax on a pension would be?


You can find information about Maltese income tax at http://www.ird.gov.mt/ .
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Re: Tax

Postby gozomark » Sun 22 Jun 2008 23:53 GMT

johnofessex wrote:
pangirl wrote:Forgot to ask what the 'normal' tax on a pension would be?


You can find information about Maltese income tax at http://www.ird.gov.mt/ .


plus you maybe able to offset any tax paid elsewhere (under double taxation treaties) to reduce your tax in Malta
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Postby Malkity » Wed 25 Jun 2008 18:51 GMT

Most of our finances are in the USA which we pay USA tax not British. Only our British pensions deposited in U.K. So would Malta tax our USA money as well as U.K. State pension? Sorry still confuused on this matter! :cry:
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Postby gozomark » Wed 25 Jun 2008 19:05 GMT

yes, but I believe Malta and the US have in the last few months signed a double taxation treaty.

also - you only pay tax in Malta on income you bring into Malta not capital - last years income is this years capital, so with planning, your tax in Malta can be minimised

with income coming from 2 countries, I'd definitely recommend you talk to a Maltese accountant - their fees should easily be covered by your savings in tax
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Postby Malkity » Thu 26 Jun 2008 15:33 GMT

The USA get us 'coming & going' - halved our USA government pension as we're also getting British pensions... even though we've paid full contributions to both! So yes, I guess we should really talk to a tax accountant before we 'leap' other wise would could be pooer than we already are. Thanks for all your advise. Probably'll have more questions! :shock:
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