Floating_Feather

Hello,
I am new to the forum, but have been browsing and using it as a source of information for some time.
My husband and I are hoping to make the move to Gozo sometime during 2016 (probably Autumn) time. I have my own business here in the UK (limited company) and this will continue to be our source of income when living on Gozo. My question is.....as a UK registered limited company, with a reg address that it not my home address....can I continue to trade in this way from Gozo? 99% of my clients are UK based and pay in GBP and expect to be invoiced in this way. The information gathered so far looks like I could still trade in this way and that the company would be liable for corporation tax to the UK government, and then myself, as an employee of this company (but me being based on Gozo) would be liable to pay my income tax to the maltese tax system. At least I think that's how I have read it, so I just wanted to check if anyone had any further insight please? I plan to speak with an international tax expert in the new year too, but wanted to go armed with as much info as possible really.
Thank you xx

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Gozit

Malta has tax exemptions for EU citizens bringing income sourced from other countries into Malta. AFAIK you will pay UK tax as always and claim your personal exemption on Maltese taxes. I am not 100% sure though however. You can continue to run your business uninterrupted from Gozo as you are an EU citizen. You will apply for an eResidence ID card once you get there as a Self sufficient person...

Hope this helps

not2old

To add to post # 2

Economic Self-Sufficiency: "This criterion requires that such individuals show that they are able to provide for themselves and for their accompanying dependants by being financially stable and not being in need of any financial support from the Maltese government. The current thresholds for EU/EEA nationals are set at a minimum capital of € 14,000 or a weekly income of € 84.95 for single persons, and at a capital of at least € 23,300 or a weekly income of € 93.10 for married couples".

http://homeaffairs.gov.mt/en/mhas-in...e/cea7-eea.pdf

http://iip.gov.mt/wp-content/uploads...U-National.pdf

https://ird.gov.mt/services/taxrates.aspx

a must get ones of these on your arrival

http://gov.mt/en/Services-And-Inform...pplication.pdf

teejaydee

You are right to have identified there are both corporate and personal tax considerations.

In you own case (and I am assuming you are non a Maltese Citizen), there are two things of which you need to be aware:

For personal taxation, Malta operates a remittance-based tax system, which means that for income tax purposes, income from outside Malta is taxable only to the extent that it is remitted to Malta. This can be useful for anyone earning money from outside Malta but not remitting it to Malta.

For corporate taxation, in Malta and elsewhere, the rule is that tax on companies' profits is due, based on where "management and control" is exercised. This is to prevent someone using an offshore company (in a 0% tax jurisdiction), operating it from a high-tax jurisdiction and paying no tax on its profits. Your company is UK registered, but as you will be living in Malta, the tax authorities are likely to deem that it is being managed and controlled from Malta, and therefore its profits should be taxable in Malta. This is the main question I would be asking the tax expert you are planning to see. It could be beneficial for you to transfer your company from the UK to Malta, but this could be determined only after more details of your individual circumstances are known.

Once the issue of corporate tax is resolved, you can decide which of the various residency programmes offers the most advantageous tax regime. You can find out more about the various programmes from the Malta Inland Revenue website (https://ird.gov.mt/default.aspx).

Floating_Feather

Wow, thank you all so much for your replies. I will sit and have a read through properly in the morning and take a look at the links too. Thank you so much, I really do appreciate it xx

not2old

For reference purposes only, further reading in the links below

Malta Company Tax System : Chetcuti Cauchi Advocates : Tax & Corporate Taxation System

A summary of corporate tax in Malta

Floating_Feather

Thank you so much for this information, it has been really helpful. I will update the thread too when I have seen the tax expert in case it might help someone else in the future too. Thank you all again x