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Old Jan 25th 2017, 6:48 am   #1
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Default Malta tax and work

We (hubby, two children, myself) are thinking about moving to Malta. I have family there (I am half Maltese) and my health really suffers in the English climate.

I read somewhere online that you have to pay 15% tax on assests taken into the country. Does this mean we'd have to pay this before we could use the money to buy a house?

If we already have citizenship (which I understand we can get) before we move there, would we still have to pay? (I think this tax rate would mean we wouldn't actually be able to afford to move!)

Hubby will still need to work there. Is it easy to find work if you cannot speak Maltese? (unfortunately I've never been taught and he is worried about having to learn a new language). How does income tax work? I found this: https://ird.gov.mt/services/taxrates.aspx does it mean you pay 0% on the first portion of income, then 15%, then 25%? Or is it all off the total amount you earn? What does the "subtract" colomn mean?
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Old Jan 26th 2017, 2:54 pm   #2
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Default Re: Malta tax and work

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Originally Posted by Pastizzi View Post
We (hubby, two children, myself) are thinking about moving to Malta. I have family there (I am half Maltese) and my health really suffers in the English climate.

I read somewhere online that you have to pay 15% tax on assests taken into the country. Does this mean we'd have to pay this before we could use the money to buy a house?

If we already have citizenship (which I understand we can get) before we move there, would we still have to pay? (I think this tax rate would mean we wouldn't actually be able to afford to move!)

Hubby will still need to work there. Is it easy to find work if you cannot speak Maltese? (unfortunately I've never been taught and he is worried about having to learn a new language). How does income tax work? I found this: https://ird.gov.mt/services/taxrates.aspx does it mean you pay 0% on the first portion of income, then 15%, then 25%? Or is it all off the total amount you earn? What does the "subtract" colomn mean?
You have to pay 15% on income that is remitted to Malta whilst resident. So if you have income earned in the UK and you do not transfer it to a Maltese account, you do not have to pay tax.

If you are bringing money with you that you have already earned and been taxed on in the UK, it will not be taxed again upon entering Malta as that would be double taxation.

Capital gains are also not taxable.
Living in Malta - No More Tax

As far as I know however some of this may change if you are a Maltese national. The site above refers to British citizens exercising EEA treaty rights. This site here suggests that as long as you do not become domiciled (which is a different term to residency) in Malta, you will be treated the same as a foreigner UK citizen resident in Malta under the source/remittance scheme. BritInParis knows a bit about this so I will page him and see if he can help out. https://www.ccmalta.com/publications...nship-taxation


For income tax, that applies to everyone if you are working a job in Malta. The subtract column i'm not sure about. However the rate is progressive, ie you are taxed 0% on the first 9100EUR (for single), 15% on 9100-14500EUR, 25% on your income between 14501-60000EUR, and 35% on all income above 60001EUR.

Finding work in Malta with only English is manageable, perhaps you will miss out on some opportunities but you will be fine by and large. Expect salaries to be lower than the UK.

In terms of citizenship, I would 100% recommend applying for Maltese citizenship as it makes everything easier, even just the cultural aspect, you will receive less flak for being "a foreigner" and have access to more. Dual nationality is never a disadvantage.

Especially now with Brexit, we are not sure if your EEA treaty rights as British citizens will remain.

Depending on when you want to move, if you want to move immediately then you can do so on your British passports as EU citizens and apply for Maltese citizenship through the office in Valletta. If you have a few years to go through the process and wait, you can do it via the High Commission in London.

I was born in Canada and still live here but I am Maltese by virtue of my nanna and nannu and want to return someday. I had to apply for citizenship for my mum first (she was also born in Canada,) then I could apply myself. We then applied for my dad which he was able to do by virtue of marriage and my 2 siblings in the same fashion as myself.

It sounds like if your parents were born in Malta then you, your husband and your kids will follow the exact application process I did, so let me know if I can be of assistance there.

Hope this all helps
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Old Jan 26th 2017, 3:10 pm   #3
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Default Re: Malta tax and work

Thanks for the reply. That clears things up!

We are thinking of applying for Maltese citizenship or dual nationality anyway to maintain the link with the EU after Brexit. Might start sooner rather than later. I have one English, one Maltese parent (born in Malta to Maltese parents).
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Old Jan 28th 2017, 3:50 pm   #4
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Default Re: Malta tax and work

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Originally Posted by Pastizzi View Post
Thanks for the reply. That clears things up!

We are thinking of applying for Maltese citizenship or dual nationality anyway to maintain the link with the EU after Brexit. Might start sooner rather than later. I have one English, one Maltese parent (born in Malta to Maltese parents).
No problem

I would do it... Starting soon is a good idea as the office in Valletta is slightly backlogged now with all the citizenship by investment applications (don't get me started on that...) so it can take a while.

Firstly you, as the immediate descendant of a Maltese citizen born in Malta will need to apply for your citizenship. Then, once you have yours, your husband and children can apply together through the registration process.

Was it your father or mother that was the Maltese parent? Depending on which parent was Maltese it is different forms to fill out. You were born in the UK I presume?

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Old Mar 31st 2017, 10:00 am   #5
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Default Re: Malta tax and work

Before you jump in, you might want to compare the differences in taxation - its my understanding that Maltese Citizens are taxed more highly than expats who are resident here, but I am not sure just how much.
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Old Apr 1st 2017, 4:32 pm   #6
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Originally Posted by P3nny View Post
Before you jump in, you might want to compare the differences in taxation - its my understanding that Maltese Citizens are taxed more highly than expats who are resident here, but I am not sure just how much.
Only on money you earn outside the Maltese islands and do not remit to Malta. If you are living and working in Malta its no difference.
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