Spain to Malta

[onelittlecookie]

Is there anyone who knows the correct rules when it comes to this situation.

Being resident in Malta with a company there and hired by my own company, receiving a salary from that company and paying what I need in Malta.
Rules say any income outside Malta I dont need to tax it in Malta as long as It is not sent to a Maltese account.

So if I send dividend from my Spanish company where I am shareholder in, to my account outside of Malta for example, does this count as income that does not have to be taxed in Malta or does dividend work differently than "normal" income?
Just to clarify, the dividend sent from Spanish company will not be taxed in spain as I am not "tax resident" there. So dividend will be fully untaxed.

 

[clemens]

Speak with a good tax lawyer in the country of where you live. Finally it is where you live that you will get taxed on if the company abroad has no substance.

 

[onelittlecookie]

Speak with a good tax lawyer in the country of where you live. Finally it is where you live that you will get taxed on if the company abroad has no substance.

Hi!

Well I have a tax lawyer, he is only on vacation so I cant reach him at this point so just wanted to get ahead of things and ask if anyone has experience with this. Company abroad has over 30 employees so it has all the substance needed. The question is only about the dividend, as I am not taxed on foreign income not remitted to Malta I assume it should be the same for dividend but still need to confirm with a lawyer as you said!

 

[CaptK]

Hi!

Well I have a tax lawyer, he is only on vacation so I cant reach him at this point so just wanted to get ahead of things and ask if anyone has experience with this. Company abroad has over 30 employees so it has all the substance needed. The question is only about the dividend, as I am not taxed on foreign income not remitted to Malta I assume it should be the same for dividend but still need to confirm with a lawyer as you said!

Speak to these guys I have done a lot of Malta related business with them. Plus they are based in Malta.
Ask for Constanta, she will guide you.

Malta taxation 5% (after refund), advantages for residents without domicile

Malta tax: refund for foreign shareholders, tax-free income outside Malta for residents without domicile, benefits for partnerships with foreign partners

zugimpex.com

 

[Martin Everson]

Rules say any income outside Malta I dont need to tax it in Malta as long as It is not sent to a Maltese account.

Correct

So if I send dividend from my Spanish company where I am shareholder in, to my account outside of Malta for example, does this count as income that does not have to be taxed in Malta or does dividend work differently than "normal" income?

It does not count as income in Malta as its not remitted to Malta. It is of no interest to Malta. However Malta does have a minimum tax of 5,000 euros for non-doms who receive more than 35,000 euros of income offshore that is not remitted to Malta.

Just to clarify, the dividend sent from Spanish company will not be taxed in spain as I am not "tax resident" there. So dividend will be fully untaxed.

No problem.


P.S As mentioned speak to a tax lawyer. Do not leave to chance as tax rules change.