Emigrating to Malta Tax Free Living with Non Dom Status

VALETTA, Malta - Feb. 23, 2025 - PRLog -- Benefits of the Non-Dom Program in Malta

Malta's Non-Dom system is one of the most liberal globally, offering numerous advantages:

- No Tax on Foreign Income: Income kept in foreign accounts and not transferred to Malta is tax-exempt.
- Capital Transfers: Wealth accumulated before relocating to Malta can be transferred tax-free.
- No Time Limit: Unlike other countries, Malta imposes no time limit on Non-Dom status.
- No Lump-Sum Tax: Unlike some tax havens, there is no requirement for flat-rate taxation.
- No Wealth, Inheritance, or Gift Taxes: These taxes do not exist in Malta, except for real estate transfers through inheritance or gifting.

Who Qualifies for Non-Dom Status?

Non-Dom status is designed for individuals relocating to Malta while keeping their tax domicile in another country. Eligible categories include:

- Investors: Those with income from dividends, interest, or capital gains.
- Entrepreneurs: Owners of foreign companies (e.g., US LLCs).
- Private Individuals: People with wealth and international income sources. Excluded are incomes derived from Maltese sources, including salaries or profits from local employment or businesses.

Minimum Tax and Requirements

Despite its tax freedoms, some conditions apply:

- Minimum Tax: Those earning over €35,000 in foreign income annually must pay a minimum tax of €5,000 in Malta.
- Remittance Basis Compliance: To remain tax-exempt, earnings must not be transferred to Malta.
- No Economic Ties to Malta: Foreign income must not be linked to Maltese business activities.

Taxes in Malta: An Overview

Taxes may apply to income or wealth generated in Malta or transferred there. Key rates include:

- Income Tax (for Individuals):
- 0%: Up to €12,000.
- 15%: Between €12,001 and €16,000.
- 25%: Between €16,001 and €60,000.
- 35%: Over €60,000.

- Corporate Tax:
- While the nominal rate is 35%, foreign shareholders often benefit from an effective rate of just 5%.

- Capital Gains Tax:
- Non-Dom taxpayers are exempt from capital gains tax on profits not transferred to Malta. However, home country taxes may still apply depending on double taxation agreements (DTAs).

Cryptocurrencies and Taxes

Malta is a haven for cryptocurrency investors:

- Private Gains: Gains from private trading are tax-free (except day trading).
- Commercial Trading: Companies dealing in cryptocurrencies face a 35% tax rate.
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