Malta tax residency & stay <183 days

[Hest]

I am an EU citizen. I consider moving to Malta as self-sufficient.

Ideally I will visit Malta every two months and spend ~65 days in total per year.
I can stretch it to monthly visits and spend ~95 days.

I will not spend >180 days in any other jurisdiction.

Is this sufficient to become a TAX resident of Malta?

Finally, will it matter if go for Ordinary Residency (OR) vs The Residency Program (TRP) ?

The minimum tax is €5k with OR but €15k with TRP. I'd be okay with the latter if it guarantees a tax residency status.

 

[SoNewToAllShit]

As I understand it, you need evidence that you are staying in Malta for X number of days. Where do you plan to stay during the remaining days?

 

[Hest]

As I understand it, you need evidence that you are staying in Malta for X number of days. Where do you plan to stay during the remaining days?

Yes, when you request a Certificate of Tax Residency (RCTCR02) you need to fill in the amount of days you stayed in Malta past 12 months. Providing evidence should be easy through flight tickets.

For me this would be something like 80 days in Malta (two weeks every two months). The remaining year I'd spend:
- 130 days in country A (they only tax me if 180+ days or registered address)
- 70 days in country B (they'd tax me if 90+ days)
- 80 days on various trips (business and holiday)

If Malta does not accept me as tax resident, no other country would either. Lack of tax residence would mean higher WHT on received dividends. I also expect banks to require this certificate more and more, so I'm afraid I must have a proper tax residence.

 

[Mr Gus]

https://cfr.gov.mt/en/individuals/Pages/Tax-Residence.aspx

For most people coming from western EU countries it's not to so much about wether Malta sees you as tax resident or not, but more about when your home country doesn't see you as tax resident any more.

Most western countries are deliberately very vague about when you are tax resident or not. I believe only the UK has a tax residency test. If you want to be save you should check if your home country has a tax treaty with Malta, if so, make sure to get a permanent home in Malta and don't have one in your home country and spend 183 days or more in Malta.

A tax residency certificate is the most useless piece of paper if you want it to protect you from the taxman in your home country.

 

[hofo]

Most western countries are deliberately very vague about when you are tax resident or not. I believe only the UK has a tax residency test. If you want to be save you should check if your home country has a tax treaty with Malta, if so, make sure to get a permanent home in Malta and don't have one in your home country and spend 183 days or more in Malta.

yes I have read that many times before, you have to cut all ties with your home country to avoid being taxed, even if you live abroad.

 

[Mr Gus]

yes I have read that many times before, you have to cut all ties with your home country to avoid being taxed, even if you live abroad.

I didn't say you have to cut all ties. As long as you have treaty protection you can do whatever you'd like.

Tax treaties overwrite local law, so if you have treaty protection, and you can prove it in court, the tax authorities in your home country have zero chance of winning.

 

[PhantomOf ThePits]

I am an EU citizen. I consider moving to Malta as self-sufficient.

Ideally I will visit Malta every two months and spend ~65 days in total per year.
I can stretch it to monthly visits and spend ~95 days.

I will not spend >180 days in any other jurisdiction.

Is this sufficient to become a TAX resident of Malta?

Finally, will it matter if go for Ordinary Residency (OR) vs The Residency Program (TRP) ?

The minimum tax is €5k with OR but €15k with TRP. I'd be okay with the latter if it guarantees a tax residency status.

Cyprus NonDom is 60days:
link for example with google here https://gk-lawfirm.com/cyprus-tax-residency/
(thats if you are NOT creating substance in other countries like you are for example living quite 'nomadicly'

For Malta, if you go for the 15k TRP Special program (which takes some months for them to qualify you), there's no minimum requirement of days to stay on Malta(from Maltese side).
However, the same, dont create substance in another country and the famous 183 days rule is just one of the tests.

Also, its important with the TRC (Tax Residency Certificates) that some countries you want to show this TRC to, may not give too much on that piece of paper from another country if they suspect you may be their tax resident (places like Germany, Scandinavia and such can be really nasty in that if they investigate you).

 

[Hest]

For Malta, if you go for the 15k TRP Special program[...]

Do I need to pay the full 15k if I already paid tax to other countries? Say I pay € 1k in tax abroad for renting out apartments, and € 2k are withheld from dividends on US and EU stocks. Since I already paid 3k in tax abroad, does Malta claim 12k or 15k from me? (These countries have double tax agreements with Malta)

 

[PhantomOf ThePits]

Do I need to pay the full 15k if I already paid tax to other countries? Say I pay € 1k in tax abroad for renting out apartments, and € 2k are withheld from dividends on US and EU stocks. Since I already paid 3k in tax abroad, does Malta claim 12k or 15k from me? (These countries have double tax agreements with Malta)

For this special program you'd pay 15k to Malta no matter how much you paid abroad.


The ordinary residence (where you'd need to stay longer, you'd have a minimum of 5k EUR).