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Moving to Malta: Your Stress-Free Path to Tax Benefits and a Better Quality of Life
Are you dreaming of a life under the Maltese sun with attractive tax benefits? Moving to Malta can be a rewarding decision, but it also comes with some challenges. At GoMovin, we make your move as smooth as possible. Find out more about our comprehensive relocation services and how we can support you. Find out more
The topic short and concise
Are you dreaming of a life under the Maltese sun with attractive tax benefits? Moving to Malta can be a rewarding decision, but it also comes with some challenges. At GoMovin, we make your move as smooth as possible. Find out more about our comprehensive relocation services and how we can support you. Find out more
Are you dreaming of a life under the Maltese sun with attractive tax benefits? Moving to Malta can be a rewarding decision, but it also comes with some challenges. At GoMovin, we make your move as smooth as possible. Find out more about our comprehensive relocation services and how we can support you. Find out more
Are you dreaming of a life under the Maltese sun with attractive tax benefits? Moving to Malta can be a rewarding decision, but it also comes with some challenges. At GoMovin, we make your move as smooth as possible. Find out more about our comprehensive relocation services and how we can support you. Find out more
Planning to move to Malta? Learn how to benefit from tax advantages, which legal aspects need to be considered, and how GoMovin can assist with your relocation. Find out more now!
Planning a move to Malta? Malta, the sun-kissed island in the Mediterranean, offers attractive tax benefits, a pleasant climate, and a high quality of life. However, a successful move requires careful planning and consideration of various aspects. In this comprehensive guide, you'll find everything you need to know about the move to Malta, from tax peculiarities to practical tips for your new start.
At GoMovin, we understand that an international move can be a significant challenge. That's why we offer extensive support to make your move to Malta as stress-free as possible. With our expertise and global network, we are by your side every step of the way, from planning to arrival at your new home.
Why Malta?
Many Germans are drawn to Malta for various reasons: the Non-Dom status allows for significant tax advantages, especially for individuals with foreign income. The mild climate and relaxed lifestyle further add to the island’s appeal. Furthermore, the strategic location in the Mediterranean and the stable economy make Malta an interesting location for businesses. Not to be forgotten is English as an official language, which significantly eases integration.
What to Expect in This Article
This article provides you with a detailed overview of all the important aspects of the move to Malta. We explain the Non-Dom status in detail, guide you through the necessary steps for deregistration in Germany, and give you valuable tips for planning and executing your move. We also highlight the challenges that may arise and offer suitable solutions. This way, you are well-prepared for your new start in Malta.
Non-Dom Status: Optimising taxes and protecting wealth
A significant incentive for moving to Malta is the so-called Non-Dom Status. This status allows you to significantly reduce your tax burden, especially if you have income from abroad. But what exactly does the Non-Dom Status mean, and what requirements must you meet?
What does Non-Dom mean?
The Non-Dom Status is based on the principle of the Remittance Basis. This means you only pay tax in Malta on income that is actually remitted to Malta. Foreign income that is not transferred to Malta remains tax-free. This can lead to considerable tax benefits, particularly for individuals with substantial foreign income not generated in Malta.
Requirements and Conditions
Not everyone can apply for the Non-Dom Status. It is primarily aimed at individuals who receive income from abroad that is not generated in Malta. However, there is an important condition: if your foreign income exceeds €35,000 and your total tax in Malta is less than €5,000, a minimum tax of €5,000 applies. It is important to note that Malta does not require a separate declaration for the Non-Dom Status. The tax treatment is derived from general regulations.
Tax Pitfalls and Specifics
While the Non-Dom Status offers many advantages, there are also some pitfalls to be aware of. For example, pensions from Germany are usually still taxed in Germany, as the Double Taxation Agreement (DTA) stipulates this. Additionally, it is crucial that you genuinely relocate your centre of life to Malta. German authorities will scrutinise this to ensure you are not still liable to pay tax in Germany. A genuine relocation of the centre of life is essential to avoid issues with the German tax office. It is advisable to seek comprehensive tax advice before moving to Malta, to consider all aspects and find the best solution for your individual situation.
Deregistration in Germany: Correctly Ending Tax Obligations
An important step in your move to Malta is the deregistration in Germany. This is necessary to end your ongoing tax liability in Germany. However, deregistration alone is not sufficient to eliminate all tax implications. German tax law can still consider you taxable if certain factors apply.
Necessity of Deregistration
The deregistration in Germany is mandatory according to regulations when you relocate your residence to Malta. It is a significant step to avoid remaining liable for tax in Germany. However, it is important to understand that deregistration alone is not enough to fully end your tax obligations. The German tax office will continue to assess whether you have genuinely relocated your centre of life to Malta.
German Tax Laws and Pitfalls
The German tax office closely monitors whether you maintain a residence in Germany, if you keep personal belongings in Germany or if you make frequent visits to Germany. All these factors can mean that you continue to be liable for tax in Germany, even if you have deregistered in Malta. The so-called 183-day rule is often misunderstood. It’s not just about how many days you spend in Germany, but where your centre of life has been over the past 365 days. Even if you are staying in Malta but maintain close ties to Germany, this can affect your tax liability. After deregistration, the German tax office may send you a questionnaire to clarify your situation. It is advisable to complete this carefully and truthfully.
Recommendations to Avoid Problems
To avoid issues with the German tax office, you should seek advice from a tax advisor before your move to Malta. They can help you analyse your individual situation and take the necessary steps to correctly terminate your tax liability in Germany. Clarify whether an exit tax applies, especially if you own shares in corporations. The handling of the so-called disentanglement tax should also be addressed beforehand. Early and comprehensive advice is the best way to avoid unpleasant surprises and to structure your move to Malta optimally from a tax perspective.
Moving to Malta: Planning and Execution Made Easy
Planning and executing your move to Malta requires careful preparation. There are various aspects to consider, from financial planning to sorting out your residence permit. With the right planning, you can make your move smooth and settle quickly into your new home.
Preparation is key
Before embarking on your move to Malta, there are several important preparations to make. This includes the transfer of funds to Malta. This is possible without tax implications, as long as the transfer takes place before your move. Find a suitable accommodation in good time. This can be a rental apartment or a house, depending on your needs and preferences. If you are not an EU citizen, you will need to handle a residence permit. The requirements for this may vary depending on your nationality.
Residence permit for non-EU citizens
For non-EU citizens, the residence permit is a key issue. To obtain such a permit, you generally need to prove financial independence. This can be done through bank statements, proof of income, or other documents indicating you can support yourself in Malta. If you wish to work in Malta, you will need a work visa. Applying for a work visa usually requires the support of a Maltese employer. DW&P offers tailored legal and tax advice to simplify the process.
Registration in Malta
Upon your arrival in Malta, you must register with the local authorities. This is typically required within three months of your arrival. Registration takes place at the Department for Citizenship and Expatriates Affairs. At registration, you must present various documents, such as your passport, your residence permit (if needed), and proof of your address in Malta. DW&P's Relocation Services provide comprehensive support with registration and help you quickly find your way around in Malta.
Living and Working in Malta: Integration Made Easy
After your move to Malta, a new chapter of life begins. To integrate quickly and feel comfortable, it's important to get to know the language, culture, job market, and housing options.
Language and Culture
A major advantage of Malta is that English is spoken as an official language. This significantly eases communication and integration, especially if you already speak English. Maltese culture is open and friendly, making it easy for you to make connections and settle in. The Maltese are known for their hospitality and helpfulness.
Job Market and Job Search
The Maltese job market offers diverse opportunities, particularly in finance, IT, and tourism. Many international companies are based in Malta, facilitating the job search process. You can find positions on online job portals or apply directly to companies. Networking with local businesses can also aid your job search. Malta attracts international companies due to its attractive economic policies, which in turn create jobs.
Living in Malta
Malta offers a variety of housing options, from modern apartments in the cities to traditional houses in the countryside. Popular residential areas include Sliema, St. Julian's, and Valletta. Rental and property prices can vary depending on location and size. It's advisable to research the various housing options before your move and, if necessary, contact an estate agent. Philipp Sauerborn offers valuable tips for apartment hunting in Malta on his website.
Company Formation in Malta: Optimising Tax Advantages
Malta is an attractive location for businesses, particularly due to its favourable tax structures and stable economic environment. However, if you plan to set up a business in Malta, you should familiarise yourself with the specific framework and challenges involved.
Attractive Conditions for Companies
Malta offers favourable tax structures for companies, making it an appealing destination for international investments. A significant advantage is the potential refund of 6/7 of the 35% corporate tax, resulting in an effective tax burden of only 5%. Furthermore, the Maltese government is working on a regulatory framework for digital currencies and blockchain technology, positioning Malta as a pioneer in this field.
Challenges in Opening Accounts
Opening an account in Malta can be challenging due to the stringent compliance requirements related to anti-money laundering regulations. Banks require comprehensive information about the origin of funds and the business activities of the company. It is advisable to prepare thoroughly in advance and gather all necessary documents.
Tax Pitfalls for Companies
When establishing a company in Malta, there are some tax pitfalls to be aware of. For instance, you should avoid Malta's status as a tax haven and consider the so-called CFC rules (Controlled Foreign Corporation Rules). These rules are designed to prevent profits from being shifted to countries with lower taxes. Careful planning and the advice of a tax consultant are essential to avoid these pitfalls and to make the most of Malta's tax advantages. Malta1.de offers comprehensive information on the tax aspects of setting up a company in Malta.
Overcoming Challenges: Successfully Arriving in Malta
A move to Malta not only brings benefits but also some challenges. Cultural differences, bureaucratic hurdles, and specific rules such as the homeschooling prohibition can complicate settling in. However, with the right strategies and support, you can overcome these challenges and successfully settle in Malta.
Cultural Differences and Adaptation
Maltese culture differs in some aspects from German culture. To quickly acclimatise, it's important to be open to new experiences and connect with locals. Discover Maltese cuisine, attend local festivals, and get involved in the community. The more you engage with the culture, the easier your integration will be.
Bureaucratic Hurdles
The Maltese bureaucracy can sometimes be a bit slow and complicated. To overcome bureaucratic hurdles, it is advisable to seek professional support through relocation services. They can assist you with all administrative tasks, from applying for a residence permit to registering with local authorities. Be patient and diligent with the processing of applications to avoid delays.
Homeschooling
An important piece of information for families with children is that homeschooling is prohibited in Malta. If you wish to educate your children at home, this is not possible in Malta. You must enrol your children in either a public or private school. Make sure to research the various schooling options and enrol your children in good time.
Malta as a new home: GoMovin accompanies you to success
Moving to Malta is an exciting opportunity that, with careful planning and preparation, can lead to success. Malta offers attractive tax advantages, a high quality of life, and a stable economic environment. With the right information and support, you can make your new start on the sunny island a success.
Summary of Key Points
In this article, we have highlighted the key aspects of moving to Malta. We have shown you how to benefit from the attractive tax advantages, how to carry out the de-registration in Germany correctly, and how to optimally plan and execute your move. We also addressed the challenges that may arise and provided solutions on how you can overcome them.
Future Prospects
Malta is continually evolving and will remain an attractive location for international companies and individuals in the future. The advancements in the regulation of digital currencies and the continued appeal to international companies will continue to positively influence Malta. If you are considering moving to Malta, now is a good time to gather comprehensive information and take the necessary steps.
We at GoMovin are pleased to assist you with your move to Malta. With our many years of experience and comprehensive range of services, we support you in all steps from planning to arrival in your new home. Contact us today for a non-binding consultation and let us make your move to Malta a stress-free and successful experience. Contact us now!
Further useful links
Wikipedia provides comprehensive information about the state of Malta.
Eurostat offers data on the EU member states, including Malta.
Bundesministerium der Finanzen (Deutschland) provides information on emigration from Germany.
Commissioner for Human Rights (Council of Europe) provides information on human rights and society in Malta.
FAQ
What tax advantages does the Non-Dom status offer in Malta?
The Non-Dom status allows you to pay tax in Malta only on the income you actually remit to Malta. Foreign income not transferred to Malta remains tax-free. This can lead to significant tax advantages.
What should I consider when deregistering in Germany to avoid tax issues?
The deregistration in Germany is mandatory but is not enough by itself. The German tax office checks whether you have actually shifted your main residence to Malta. Avoid keeping a residence in Germany or making frequent visits.
How can I obtain a residence permit in Malta as a non-EU citizen?
As a non-EU citizen, you need a residence permit, which usually requires proof of financial independence. Alternatively, you need a work visa, which generally requires the support of a Maltese employer.
What housing options are available in Malta and how do I find suitable accommodation?
Malta offers a variety of housing options, from modern apartments in cities to traditional houses in the countryside. Popular areas for living include Sliema, St. Julian's, and Valletta. Look for a suitable accommodation in plenty of time, either to rent or buy.
Which sectors offer good job opportunities in Malta?
The Maltese job market offers diverse opportunities, especially in the fields of finance, IT, and tourism. Many international companies are based in Malta, making the job search easier.
What tax aspects should I consider when starting a business in Malta?
Malta offers advantageous tax structures for businesses, including a potential tax refund of 6/7 of the 35% corporation tax. However, be aware of the strict compliance requirements related to anti-money laundering regulations.
Is homeschooling allowed in Malta?
No, homeschooling is prohibited in Malta. You must send your children to either a public or private school.
What role does Maltese culture play in integration?
The Maltese culture is open and welcoming, which will make it easy for you to make contacts and settle in. The Maltese are known for their hospitality and helpfulness.
