Transitioning Business Abroad as a Camgirl Entrepreneur with Malta Base

[Niurrr05]

Hello everyone,

I am a camgirl who has set up her business in Malta using the classic company format, including trading and holding. I have worked to create a corporate image to be able to open bank accounts, for example with Wise. However, after four years in Malta, I feel the need to move abroad. I have considered trying out other countries, with Romania in mind.

However, I am limited in my choice of destinations because I must go to countries where webcam work is allowed, which excludes possibilities such as Dubai or Thailand (even though I dream of living there, my professional activity prevents me). Additionally, I am constrained to choose countries offering fiber optic Internet connection.

I have two questions: is it possible to maintain my companies in Malta while moving to live in another country abroad? If yes, what steps should I take? Do I necessarily have to stay in Malta for 6 months? Are there any alternatives to this constraint?

Furthermore, do you have any suggestions for countries that would meet my criteria? That is, offering high-speed Internet connection, low taxes, and allowing webcam activity. Ideally, I would like to be able to maintain my companies in Malta to avoid having to fight to recover Electronic Money Institution (EMI) accounts as everything works well today.

Thank you in advance for your responses and advice.

 

[EliasIT]

I have two questions: is it possible to maintain my companies in Malta while moving to live in another country abroad? If yes, what steps should I take? Do I necessarily have to stay in Malta for 6 months? Are there any alternatives to this constraint?

you can maintain the company from everywhere. Note, you will get taxed where you relocate if you do so. Say you move to Germany but keep the company in Malta they will tax you in Germany. Just an example.

Monaco
Cyprus
UK
Bulgaria
Portugal

There are many places, search the forum, there are lots of points to be ticket before one can answer your question.

 

[Niurrr05]

So the company in Malta can operate without a director residing there? And I wouldn't be able to receive a tax refund that only makes me pay 5% in taxes? For example, if I keep the company in Malta and move to live in Romania, I would pay 35% in taxes in Malta and then receive 6/7 of it in the coming months. And my dividends will be taxed at 8% in Romania? I need to find a country that allows me a setup with the least possible taxes

 

[scooterguy]

Not sure how much your income is, but if less than 500K EUR a year you can use the microcompany regime in Romania, and get taxed at only 1% (plus 8% dividends).

If your income is over 500K EUR/year you'd pay 16% CIT.

In any case, setting up in Romania should be easy, assuming you're an EU citizen, and you should have no problems setting up EMIs, bank accounts, etc.

 

[Niurrr05]

I was thinking about that. I find that the best option is to leave for Romania. If I'm not mistaken, there are changes in the taxation in Romania, and we will be at 3% this year, right?

 

[Dandyline]

Since you have lived in Malta for four years already, just keep your Malta setup and residency and live anywhere you want. Just maintain your homebase in Malta.

Regarding Thailand, UAE... Its not like these countries know what you are doing in your bedroom or wherever you are performing your work.

 

[Niurrr05]

Since you have lived in Malta for four years already, just keep your Malta setup and residency and live anywhere you want. Just maintain your homebase in Malta.

Regarding Thailand, UAE... Its not like these countries know what you are doing in your bedroom or wherever you are performing your work.

What do you mean by "keeping the home base in Malta"? If I rent a property in Romania, for example, could I face any consequences? The same goes for if I spend 10 months abroad and 2 months in Malta. As for Thailand, I believe I risk imprisonment if I do webcam work, and the same applies to the UAE... :/

 

[Dandyline]

What do you mean by "keeping the home base in Malta"? If I rent a property in Romania, for example, could I face any consequences? The same goes for if I spend 10 months abroad and 2 months in Malta. As for Thailand, I believe I risk imprisonment if I do webcam work, and the same applies to the UAE... :/

I mean have apartment with your registered address in Malta, malta don't care about your stay as long as your home country doesn't challenge your tax residence. Why would you want to rent an apartment in Romania other than for tax reasons? Thailand is filled with escorts and cam girls, i think you would be fine.

 

[Belfort]

What do you mean by "keeping the home base in Malta"? If I rent a property in Romania, for example, could I face any consequences? The same goes for if I spend 10 months abroad and 2 months in Malta. As for Thailand, I believe I risk imprisonment if I do webcam work, and the same applies to the UAE... :/

You're only at risk if you're a thai or an emirati.

 

[Niurrr05]

I mean have apartment with your registered address in Malta, malta don't care about your stay as long as your home country doesn't challenge your tax residence. Why would you want to rent an apartment in Romania other than for tax reasons? Thailand is filled with escorts and cam girls, i think you would be fine.

Yes, I see what you mean. If I maintain a residence in Malta with an apartment rented out, I remain classified as a tax resident of Malta. If I go abroad, the only risk is that the country in question might ask questions. As for Thailand, that's true, I'm not sure if broadcasting from there with a VPN is acceptable. I need to inquire about the connection, but if the connection is good and there are no too much risks, why not? I've heard of a camgirl who got arrested at home for webcam work. I need 1000 Mbps for broadcasting and a reliable connection. As for Romania, I wanted to rent because I need a fixed location with good internet connection, and it's one of the countries with the best tax/high speed internet ratio. In my mind, with the job of a camgirl and seeking low taxes and good internet, I feel like I can only go to Malta, Romania, Cyprus that's why I ask some help here

You're only at risk if you're a thai or an emirati.

Why ? I think P**N is illegal for everybody there

 

[Dandyline]

Yes, I see what you mean. If I maintain a residence in Malta with an apartment rented out, I remain classified as a tax resident of Malta. If I go abroad, the only risk is that the country in question might ask questions. As for Thailand, that's true, I'm not sure if broadcasting from there with a VPN is acceptable. I need to inquire about the connection, but if the connection is good and there are no too much risks, why not? I've heard of a camgirl who got arrested at home for webcam work. I need 1000 Mbps for broadcasting and a reliable connection. As for Romania, I wanted to rent because I need a fixed location with good internet connection, and it's one of the countries with the best tax/high speed internet ratio. In my mind, with the job of a camgirl and seeking low taxes and good internet, I feel like I can only go to Malta, Romania, Cyprus that's why I ask some help here


Why ? I think P**N is illegal for everybody there

Bulgaria is better than Romania in that aspect.

 

[scooterguy]

I was thinking about that. I find that the best option is to leave for Romania. If I'm not mistaken, there are changes in the taxation in Romania, and we will be at 3% this year, right?

It's 3% if you have no employees. But you can hire yourself as an employee with a basic salary and your company would then automatically qualify for the 1% CIT.

You wouldn't need the Malta company with that setup, and to be honest I don't see a reason to keep it if you want to live in Romania, since you can easily set up a new company in the latter.

Unless you're making millions, it's always a good idea to keep these things as simple as possible.

I don't recommend living in Thailand or UAE and working from there since you could get caught at some point, but like others have pointed out the risk is very small if you use a VPN and work from your room. But there is still risk the longer you are in those countries, which could go from you forgetting to turn on the VPN one day to an angry ex reporting you.

If you work while on vacation in Thailand the risk of facing issues is probably zero though, and internet speeds are great.

Bulgaria is better than Romania in that aspect.

P**N is illegal in Bulgaria.

 

[Dandyline]

It's 3% if you have no employees. But you can hire yourself as an employee with a basic salary and your company would then automatically qualify for the 1% CIT.

You wouldn't need the Malta company with that setup, and to be honest I don't see a reason to keep it if you want to live in Romania, since you can easily set up a new company in the latter.

Unless you're making millions, it's always a good idea to keep these things as simple as possible.

I don't recommend living in Thailand or UAE and working from there since you could get caught at some point, but like others have pointed out the risk is very small if you use a VPN and work from your room. But there is still risk the longer you are in those countries, which could go from you forgetting to turn on the VPN one day to an angry ex reporting you.

If you work while on vacation in Thailand the risk of facing issues is probably zero though, and internet speeds are great.



P**N is illegal in Bulgaria.

Romania changes all the time.

Starting 2024, for Romanian micro-enterprises, there will be two taxation rates: 1% of revenue for companies outside the HoReCa, medical, IT, dental fields, with an annual turnover below 60,000 Euros, and 3% for firms operating in the aforementioned sectors or with turnover between 60,000 and 500,000 Euros.

 

[Don]

Not sure how much your income is, but if less than 500K EUR a year you can use the microcompany regime in Romania, and get taxed at only 1% (plus 8% dividends).

If your income is over 500K EUR/year you'd pay 16% CIT.

In any case, setting up in Romania should be easy, assuming you're an EU citizen, and you should have no problems setting up EMIs, bank accounts, etc.

By setting up a holding company one could also benefit from 0% tax on dividends (e.g., Estonia).

 

[scooterguy]

By setting up a holding company one could also benefit from 0% tax on dividends (e.g., Estonia).

Do you mean something like a holding company in Estonia and a subsidiary in Romania?

 

[Don]

Do you mean something like a holding company in Estonia and a subsidiary in Romania?

Yes.

There are a few things to consider:
1) wether its possible to qualify for participation exemption
https://taxation-customs.ec.europa....nies-and-their-subsidiaries-european-union_en2) residency of the shareholder

For holding company I would choose Cyprus, Malta or Estonia, because there is no WHT on dividends.

For a small venture Estonia is the cheapest and least bureaucratic (e.g., no need for auditor) + there is generally no tax before profits are distributed.

Estonia is also great for personal tax residency as it doesn't require any physical presence, so it could be total effective tax around 1% maybe.

 

[girokredit]

I have two questions: is it possible to maintain my companies in Malta while moving to live in another country abroad? If yes, what steps should I take? Do I necessarily have to stay in Malta for 6 months? Are there any alternatives to this constraint?

Two important aspects you need to mind:

1. Economic substance of your business locally in Malta to qualify for effective 5% corporate tax (6/7 Refund). I.e. the place of management and executive decision making needs to be Malta. While you've been spending a min. of 183 days in Malta as the resident director you've been meeting the economic substance requirement for the tax refund. Nowadays, it's even a joint tax return your trading and holding company submits, to effectively pay 5% from the begin with (i.e. not paying 35% and requesting 30% tax refund). I do assume you own the holding with a foreign holding, to funnel dividends there.

2. Malta Non Dom Status for your as an individual; maintaining Malta as your tax residency doesn't require you to spend 183 days on the island, however, it is more so that you DO NOT establish a tax residency outside of Malta. It would be fine to spend 60 days in Malta, as long as you do not spend 183 days in another given jurisdiction theoretically and practically establishing/triggering a tax residency elsewhere. Of course it's a different question of enforcement. The Malta Non Dom is very powerful tax status as an individual, as you not only can receive your foreign offshore income tax free as long as you don't remit it to Malta, but you also don't need to declare it at all to the tax offices in Malta. It is always advisable that you keep a local employment salary from your trading company, as a min. of 5,000 EUR income needs to be paid to be able to make use of the Malta Non Dom Status. You would continue filing your tax normally to upkeep Malta as your main and ideally only tax residence. It definitely makes sense to still rent, that you have proof of paying locally.

In essence you can maintain your Malta Non Dom Status fairly easily, by avoiding establishing a tax residency outside of Malta. However with your current set up, the local economic substance of the business for the 5% corporate tax benefit is then not fulfilled anymore, and the trading would be then subject to 35% corporate tax, and your holding wouldn't qualify for the 30% tax refund anymore. And the whole double holding set up loses its purpose.

If you wanted to keep the 5% corporate tax benefit, you would need to address the local substance aspect, so you may consider to hire a local director who builds the substance for you. Obviously it's a trust thing with nominee director(s) in place, as they are officially listed on Malta Business Registry, and they should not be just a fake front, but practically be managerial executives involved in your business. Again, if that's ever going to be challenged by Malta is another question.

What creatively comes into my mind is, that depending upon your relationship to your local "trusted" accountants/auditors -- they may be able to be provide local directorship, possibly their offices as a place of management to build the substance.

 

[JohnLocke]

Sounds like Estonian company and maybe a Cyprus holding would indeed be the better solution for you if you don't want to risk to be challenged by the Malta tax office.

 

[Don]

Sounds like Estonian company and maybe a Cyprus holding would indeed be the better solution for you if you don't want to risk to be challenged by the Malta tax office.

Indeed its quite lean and robust structure in that sense.
You can plan tax in such a way that you pay 5% on only what you withdraw, as you can structure some income to Estonian head office which only pays tax on distributions.

Estonian tax residency doesnt require any presence and there is no additional tax (or minimum 5k or 2.65%) or remittance issue like with Malta or Cyprus.

If you can delay dividends for a while you can also be tax resident one year in Malta and the other year in Estonia when you will be withdrawing dividends.
Such strategy could help to alleviate the local substance issue referred to earlier by girokredit

 

[IMEXMalta]

So the company in Malta can operate without a director residing there? And I wouldn't be able to receive a tax refund that only makes me pay 5% in taxes? For example, if I keep the company in Malta and move to live in Romania, I would pay 35% in taxes in Malta and then receive 6/7 of it in the coming months. And my dividends will be taxed at 8% in Romania? I need to find a country that allows me a setup with the least possible taxes

You will be lucky when you count in month for the tax refund, it takes up to 4 years sometimes, Income Tax Consolidation for the maltese company is the key, you will pay direct only 5%, even the provisional tax is lower obviously