Residence in Malta, Company in Cyprus

[MarkusCostigan]

After all, the best solution as non dom maltese resident is to open a company in Malta, enjoy the 5% corporate tax, open both personal and corporate bank account outside Malta.

 

[lacomaco]

After all, the best solution as non dom maltese resident is to open a company in Malta, enjoy the 5% corporate tax, open both personal and corporate bank account outside Malta.

If the non-dom resident is the owner of the Maltese company, then the tax rebate will not be a Malta source of income?

 

[CyprusLawyer101]

If the non-dom resident is the owner of the Maltese company, then the tax rebate will not be a Malta source of income?

Dont tell this to the Maltese tax office, somebody may xommit suicide

 

[MarkusCostigan]

If the non-dom resident is the owner of the Maltese company, then the tax rebate will not be a Malta source of income?

No, because if you are non-dom resident, you need to use a foreign holding company which owns the trading company. The Holding company will request the tax refund.

This is why the Maltese structure is often expensive.

However, it seems that this system will change from 2025 (after years of perfect functioning )

 

[lacomaco]

No, because if you are non-dom resident, you need to use a foreign holding company which owns the trading company. The Holding company will request the tax refund.

This is why the Maltese structure is often expensive.

However, it seems that this system will change from 2025 (after years of perfect functioning )

Yes of course you need another preferably non-Maltese company, but MarcusCostigan did not mention it

 

[clemens]

I like the name you are using to write the tax authorities in Malta

 

[uncreative]

However, it seems that this system will change from 2025 (after years of perfect functioning )

Probably not yet:
https://www.maltatoday.com.mt/business/business_news/118791/malta_shelves_corporate_tax_reform

 

[ScandientrepreneurMT]

Why not just form two companies in Malta and enjoy 5% corporate tax?

If you form a company in Cyprus while controlling it from Malta, that company is at risk of becoming tax resident in Malta and liable for 35% corporate tax. Malta isn't exactly spending a lot of time and effort to look into these matters, so you'd probably be fine only paying Cypriot corporate tax. Especially if you go to Cyprus for board meetings.

But it just seems a little pointless when you have a completely legitimate option available to you with lower tax. Corporate tax in Cyprus is 12.5%, while you can achieve 5% in Malta.

Could you please direct med towards more information about this concept? Thanks in advance

 

[Sols]

Could you please direct med towards more information about this concept? Thanks in advance

Which one? The post you refer to covers a couple of different setups.

 

[ScandientrepreneurMT]

Which one? The post you refer to covers a couple of different setups.

Thanks for your quick reply! This: "Why not just form two companies in Malta and enjoy 5% corporate tax?" Would that be if I live in Malta and setup a holding/trading structure?

 

[Sols]

Thanks for your quick reply! This: "Why not just form two companies in Malta and enjoy 5% corporate tax?" Would that be if I live in Malta and setup a holding/trading structure?

They're called fiscal units.

https://www.bdo.global/en-gb/micros...er-2020/malta-consolidated-income-tax-returns
That might not be the best article. There are many more out there.

You can do the same with a foreign holding company as well, but fiscal units are designed to promote placing the holding company in Malta to simplify the tax returns. The idea is you pay 35% corporate tax and some time later get 6/7 of it back for a net burden of 5%. With a fiscal unit, you can go directly for 5%.

 

[ScandientrepreneurMT]

They're called fiscal units.

https://www.bdo.global/en-gb/micros...er-2020/malta-consolidated-income-tax-returns
That might not be the best article. There are many more out there.

You can do the same with a foreign holding company as well, but fiscal units are designed to promote placing the holding company in Malta to simplify the tax returns. The idea is you pay 35% corporate tax and some time later get 6/7 of it back for a net burden of 5%. With a fiscal unit, you can go directly for 5%.

Thank you, I will look into that more! I am wondering how it can be combined with the remittance based income scheme if possible/neccesary..

 

[Sols]

Thank you, I will look into that more! I am wondering how it can be combined with the remittance based income scheme if possible/neccesary..

Fiscal units are for optimising corporate tax.

Personal tax is a separate matter.