do you really think they will go after you if you don't live there?@BlueMist that is super interesting. What about declaring taxes because you hold a Malta ID card, Malta will expect that won't they, if you don't file a tax return they'd fine you or??
I don't think that Malta trading + holding setup is advisable for residents living in Malta. It is fine to use such setup of Malta holding + Malta trading if you are not living in Malta. That's why usually the most common scenario for people living there is Malta trading + Cyprus holding. Such dividends received from Malta trading company should not be remitted back to Malta to your personal account. You should pay them out somewhere else to your personal account and wait some time if you necessarily want to bring them back to Malta.Just curious, the Maltese consolidated accounts setup, how does it work out in practice - so you have A Ltd. and B Ltd. both on Malta, A owns B, and you own A Ltd., and you are a tax resident on Malta only. B can then conduct any business (e.g. sell consulting services, facilitate sales, whatever), and you then pay out the profits as dividends to yourself, with 5% total company tax. Are you due any other taxes on top of this in Malta e.g. personal income tax?
I don't think that Malta trading + holding setup is advisable for residents living in Malta. It is fine to use such setup of Malta holding + Malta trading if you are not living in Malta. That's why usually the most common scenario for people living there is Malta trading + Cyprus holding. Such dividends received from Malta trading company should not be remitted back to Malta to your personal account. You should pay them out somewhere else to your personal account and wait some time if you necessarily want to bring them back to Malta.
Seems like no one really appreciates the instant 5% taxation scheme, which ofcourse is quite a bit more expensive yet you will be done with taxes in no time. I might overthink going for the 3-way-structure I guess.always foreign holding. dont do holding + active trading both on malta just for the instant 5% and not paying 35 + getting refund scheme if you live there (which you should for the whole thing). there are ways to do it but not worth it especially given the current climate.
you can remit the money to malta tax free after some time as savings. officially something like minimum of 6 months is being floated but most decent accountants / lawyers will advise you to 1-2 years.
It doesn't seem matter if you have MT holding + MT trading or CY holding + MT trading for instant 5% taxation scheme.always foreign holding. dont do holding + active trading both on malta just for the instant 5% and not paying 35 + getting refund scheme if you live there (which you should for the whole thing). there are ways to do it but not worth it especially given the current climate.
That's interesting, I would also like to hear about such setup in practice. I once thought about making Singapore holding for my Malta company, but never really ventured into details of doing it. It still seems Cyprus holding is the more popular choice.What do you guys think of some Asian Holding+MT Trading, like a HK Holding? Might be better for businesses involved in Cryptos. I'm currently thinking about a HK+MT-way, because EU regulations seem to get worse by the day and I'd lose most of my clients if it really does get worse.
It doesn't seem matter if you have MT holding + MT trading or CY holding + MT trading for instant 5% taxation scheme.
That's interesting, I would also like to hear about such setup in practice. I once thought about making Singapore holding for my Malta company, but never really ventured into details of doing it. It still seems Cyprus holding is the more popular choice.
Case in point, Cyprus now has an 8 billion euro hole in its budget thanks to having to suspend its passport for sale program.Btw planning for more than 5 years with any EU setup is
unrealistic. Expect things to change 2025 on. Of course MT & Co will try to uphold similar structures for longer but it will likely be a lot harder. The time is ticking for these budget setups that you can pull off so easily with so little money.
I’ve heatd about option 2, btw in my case Option 1, I’ve never wait more than 2 weeks to get refund the point is when your accountant made accounts and fill all papers for refunds... I usually wait the ok from accountant to pay taxes...I just got the response about both strategies! So let me make it short but clear.
Option 1 (slow way): establishing one Malta LTD as the operating business and one UK LP as the Holding. This is probably the way 95% of all people know and use. Positive thing about this setup is it's cheaper than option 2. Negative thing is you'll have to wait up to 12 months to get the 6/7 tax refund - you can watch the first pages of this thread and find other people complaining about long waiting times for tax refunds!
Option 2 (fast way): establishing one Malta LTD as the operating business, one Malta Holding and one UK LP as the main Holding. There have been many changes in 2019(+), one of them actually allows setups like this to avoid the 6/7 tax refund but to pay the 5% effective tax rate directly. Like I already mentioned, this way is pretty new so only people use it yet or even know about it. Negative thing about this setup is higher costs and more connections to watch over. Positive thing is you won't have to wait for the tax refund and will be way more flexible with your money.
I'm not sure yet which way I'll go, so I'd love to hear your opinions about this matter. I tend to prefer option 2 since being more flexible with money - especially in times like this - is a pretty damn good argument. However, I f*cking hate having additional businesses, bank accounts or pretty much anything that's actually unnecessary.
I’m been in contact with cfr Officer with this scheme they have not tell me anything, it’s normal setup in MaltaYour right. btw CfR would not even ask you as your lawyer as part of DAC6 since 1 July 2020 would have reported the crossborder structure arrangement already. You would just get a tax bill for unpaid taxes for such a non-genuine arrangement. It's far simpler to get a letter of confirmation from CfR for such an arrangement in advance of doing it or stay well away from rolling the dice or blaming a tax advisor servicing you from the back of a malta barber shop.
https://www.offshorecorptalk.com/th...eporting-comes-into-effect-1-july-2020.29711/
I think you can transfer back to Malta next year from the financial accounts, this is what i heard from a consultant, next year it will not transfer like dividend but as capital...You can be a resident of Malta, living there, running LTD company which shares are held by CY holding. LTD pay full 35% tax which 6/7 gets refunded to CY holding. The important part is not transfer the dividends from CY holding back to Malta if you are a resident there. I think some time need to pass before you can do that, can’t remember how long. You would need to check that.
However I still don’t get what structure allows to pay 5% directly by LTD without having to wait for the refund. Maybe something has indeed changed, I would need to check that with my accountant.
Exactly and CFC is applied ONLY to maltese company that own and manage foreign companies (with the threshold described) CFC is not applied at all when a Person (not a company) own and manage foreign entity...You guys are making it too complicated, or some agent is making some BANK off you
The laws (and top 4 accountants) clearly say that CFC doesn't apply to companies that don't make 750K in yearly profits. Just open any offshore anywhere and don't f**k with complex expensive structures.
Mind telling what’s your setup and who‘s your agency?Btw i’ve read of accounting cost are expensive here in Malta 10/12k for structure for tax refund, so I’m lucky that i’m paying around 4/5k per year for accounting/holding/refund and so on?
My accountant told me to not share his contact on Forums, btw there are many in Malta, if you want i can suggest some in pm.Mind telling what’s your setup and who‘s your agency?
I‘ll finally relocate in a few weeks and use some offshore company for the first months being there. However, I will need a Maltese company anyways since I need Paypal (onshore) along some other perks.
How long have you been waiting for your approvals?
There are some folks on this forum who wrote they had to wait for many weeks or months.
Google “accounting malta” you will find a lot from the bigger (csbgroup it’s local looks not to expensive, pwc, rsm, kpmg, granthtoronton and so on)And there are many other smaller... Which banks you will use ?Unfortunately I can‘t pm in here anymore, so which agencies do you recommend? Do you know of their prices and services?
I won‘t bank with Maltese banks in the beginning since I am considered a high risk client and I don‘t have the necessary turnover yet. Don‘t even think I will bank with them anyways.
Do they offer company formation too? I would like to have my company structure set up and managed by just one single agency.Google “accounting malta” you will find a lot from the bigger (csbgroup it’s local looks not to expensive, pwc, rsm, kpmg, granthtoronton and so on)And there are many other smaller... Which banks you will use ?
Yes sure they offer also company formation service and tax refund processDo they offer company formation too? I would like to have my company structure set up and managed by just one single agency.
For the first few weeks/months I will use Bankera. Once my business grows I will switch to a real traditional bank alongside a neo bank. Not quite sure which ones to aim for yet.
@paperchaser @blizz @Martin Everson any tax lawyer to recommend for setting up "no refund waiting" 2-maltese-company structure? I received an offer from a consultant and they charge me 20k EUR the whole setup. Is that expensive? The highest costs were Director fees.
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