Malta Taxes

Intofantasy · Jul 25, 2020

I live in Sweden.
Has a sole proprietorship at the moment, and taxes disgustingly much.

My plan is to establish some type of form to escape the taxes in Sweden and go over to Malta in some way and have the benefits of the tax from there.

Want to continue living in Sweden, but have the benefit of low taxation, have no idea how to proceed.

All work is done on the internet, does not have to be physically in place to make money, etc., everything is done digitally.

Need a lawyer who takes care of all contacts with the authorities, takes care of the accounting, handles the VAT reporting, who helps with tax issues and who helps the companies to minimize your tax.
Want to avoid hassle with authorities, avoid paperwork and that allows me to keep as much money as possible from what I have withdrawn.

perrymason · Jul 25, 2020

you can create a holding in Malta for those proposes, make sure you get a good lawyer and keep in mind if you're not making big money the setting up cost is going to be too high in comparison to your tax savings.

yherrliche · Jul 25, 2020

Intofantasy said:
Want to continue living in Sweden, but have the benefit of low taxation, have no idea how to proceed.

I might be wrong, but you'll still pay your income tax and social security tax in Sweden, I believe dividend tax too.
The VAT might change, but that's paid by the customer so it doesn't matter. The corporation tax in malta is 35% and it seems it's 21% in sweden. It looks like you're trying to complicate your life and will end up spending more.

Unless you plan to really evade taxes, and not just optimize. But that's rarely sustainable, you'll get caught like they all do and end up paying+penalty.

Be smart.

BeneFits · Jul 25, 2020

Think twice about tax optimization this way...
Because you do not intend to relocate you are going to stay tax resident in Sweden...
Creating an offshore company in Malta is possible, that company will obviously pay local taxes...
As soon as you take the money out of that entity and move it to Sweden you will still have to pay taxes in Sweden (unless done in a fraudulent way)...
It seems to me you will end up paying more...
As stated before, look at creating a local company first to optimize...

Deleted member 1333509 · Jul 25, 2020

Everyone says that Malta is great for tax, and while it's cheaper than most other non-offshore countries, it's not that good. The banking system there is fucked too.. lots and lots of hoops to jump through.

In Malta they have the two-company structure someone mentioned above - pay 20-something % tax then get a refund for all but 6 or 7 %.

Another option is Cyprus offshore (ie. no director in the country).. gives you 0% corp tax, and even better is UAE free zone companies - 0% corp + they give your company tax residency.. (you don't get that with Cyprus offshore)..

..and you can also get easy to setup world class banking + offer for residency if you want which gives you 0% personal income tax too (ie. UAE is the only place I've ever heard of you can LEGALLY pay 0% tax in totality from the time your company generates revenue to the time you buy a new Lambo)

Look it up.. both options good. Isle of Man is worth a look too.

silvi-kucedra · Jul 25, 2020

Forget Malta, check out Singapore or Hong Kong - it's perfect for online businesses (speaking from experience). Here's how you do it in a nutshell:

1) Open a Corp there & move all your online assets under that corp.
2) Let profit build up under that Corp while paying minimal Corp taxes and 0% Capital gains. Pay yourself a living wage from that Corp - you only pay income taxes in Sweeden for this amount of salary you decide.
3) After some time, the Corp will have quite a nice balance sheet - when you are ready to withdraw all that money, make sure you stay in Sweeden less than 180 days in that tax year which you are withdrawing. You pay 0% withdrawing tax in Singapore / Hong Kong & are not liable for any taxes in Sweeden since you are not considered a tax resident there if staying less than 6 months.
4) Enjoy!

Some other countries worth considering are: Labuan (Malaysia) & Puerto Rico (you take advantage of Acts 20 & 22 of the tax code, but unlike Asian countries, you have to physically stay there for at least 6 months, this is the best option for US citizens, so I don't recommend it, but just keep it in mind).

Last, but certainly not least, please consult a lawyer in those Asian countries, they will guide you through the whole process. I just gave you a quick intro so you can see it's possible, but don't take that as legal advice. Good luck!

RyanHSEO · Jul 25, 2020

Move your funds offshore, somewhere such as the Isle of Man or even Malta as you've mentioned.

Intofantasy · Jul 26, 2020

perrymason said:
you can create a holding in Malta for those proposes, make sure you get a good lawyer and keep in mind if you're not making big money the setting up cost is going to be too high in comparison to your tax savings.

As long as the taxes are 5% and not 55% + VAT 25%
Holding company, correct?

Thank you.

Intofantasy · Jul 26, 2020

BeneFits said:
Think twice about tax optimization this way...
Because you do not intend to relocate you are going to stay tax resident in Sweden...
Creating an offshore company in Malta is possible, that company will obviously pay local taxes...
As soon as you take the money out of that entity and move it to Sweden you will still have to pay taxes in Sweden (unless done in a fraudulent way)...
It seems to me you will end up paying more...
As stated before, look at creating a local company first to optimize...

How about going to malta, when your ready withdraw the money and have it in hands, to avoid double taxasion?

Intofantasy · Jul 26, 2020

VSYNC said:
Everyone says that Malta is great for tax, and while it's cheaper than most other non-offshore countries, it's not that good. The banking system there is fucked too.. lots and lots of hoops to jump through.

In Malta they have the two-company structure someone mentioned above - pay 20-something % tax then get a refund for all but 6 or 7 %.

Another option is Cyprus offshore (ie. no director in the country).. gives you 0% corp tax, and even better is UAE free zone companies - 0% corp + they give your company tax residency.. (you don't get that with Cyprus offshore)..

..and you can also get easy to setup world class banking + offer for residency if you want which gives you 0% personal income tax too (ie. UAE is the only place I've ever heard of you can LEGALLY pay 0% tax in totality from the time your company generates revenue to the time you buy a new Lambo)

Look it up.. both options good. Isle of Man is worth a look too.

Thank you so much for this knowledge!
Was very needed!

Intofantasy · Jul 26, 2020

silvi-kucedra said:
Forget Malta, check out Singapore or Hong Kong - it's perfect for online businesses (speaking from experience). Here's how you do it in a nutshell:

1) Open a Corp there & move all your online assets under that corp.
2) Let profit build up under that Corp while paying minimal Corp taxes and 0% Capital gains. Pay yourself a living wage from that Corp - you only pay income taxes in Sweeden for this amount of salary you decide.
3) After some time, the Corp will have quite a nice balance sheet - when you are ready to withdraw all that money, make sure you stay in Sweeden less than 180 days in that tax year which you are withdrawing. You pay 0% withdrawing tax in Singapore / Hong Kong & are not liable for any taxes in Sweeden since you are not considered a tax resident there if staying less than 6 months.
4) Enjoy!

Some other countries worth considering are: Labuan (Malaysia) & Puerto Rico (you take advantage of Acts 20 & 22 of the tax code, but unlike Asian countries, you have to physically stay there for at least 6 months, this is the best option for US citizens, so I don't recommend it, but just keep it in mind).

Last, but certainly not least, please consult a lawyer in those Asian countries, they will guide you through the whole process. I just gave you a quick intro so you can see it's possible, but don't take that as legal advice. Good luck!

Thank you so much, seriously.
Will use all this info, as you provided was really necessary.

BeneFits · Jul 26, 2020

Intofantasy said:
How about going to malta, when your ready withdraw the money and have it in hands, to avoid double taxasion?

Exactly as I said, unless done in a fraudulent way...
You do not want to relocate so you stay tax resident in Sweden... Aren't you supposed to declare any foreign income to your local tax authorities?

Do some research as how your country interprets 'tax residency' as where I live it is not sufficient to move out and live elsewhere for over 6months/year.

ExperimentalSEO · Jul 28, 2020

You're going to need to check with a tax lawyer about the rules regarding operating and running it out of Sweden even though its registered in Malta. The tax authorities could consider the money earned in Sweden and not Malta(or other country) since you are the sole owner of the company, reside in Sweden and run its operations in Sweden.

Deleted member 110025 · Jul 28, 2020

hi, I would probably take a different approach:
1) if you have friends at KPMG, EY or similar - ask them to get recommendations for local lawyers from Malta that serve small businesses
alternative > 2) contact the Malta Chamber of Commerce - they will suggest you few members of theirs

both ways are much, much safer than asking for recommendations here

.. I happen to know (briefly) a communications executive from Cyprus Chamber of Commerce (met her at some fancy event in London). pm me if you need that contact. Though all the offshore zones tend to be different

gl

p.s. the best advice - get a good accountant in Sweden and you will sleep well

frodo92 · Sep 4, 2020

For low taxes you need a company (S.R.L) in Romania. Fees: 3% for income / 16% for profit. VAT it's 19%.

Deleted member 1333509 · Sep 5, 2020

frodo92 said:
For low taxes you need a company (S.R.L) in Romania. Fees: 3% for income / 16% for profit. VAT it's 19%.

That's way high, even Malta is less than 16% profit with double company structure. UAE - 0% income tax, 0% corporate tax (unless you set up an oil company which is 55% tax)

Intofantasy · Sep 5, 2020

yherrliche said:
I might be wrong, but you'll still pay your income tax and social security tax in Sweden, I believe dividend tax too.
The VAT might change, but that's paid by the customer so it doesn't matter. The corporation tax in malta is 35% and it seems it's 21% in sweden. It looks like you're trying to complicate your life and will end up spending more.

Unless you plan to really evade taxes, and not just optimize. But that's rarely sustainable, you'll get caught like they all do and end up paying+penalty.

Be smart.

Im very thankful for your response!

BeneFits said:
Think twice about tax optimization this way...
Because you do not intend to relocate you are going to stay tax resident in Sweden...
Creating an offshore company in Malta is possible, that company will obviously pay local taxes...
As soon as you take the money out of that entity and move it to Sweden you will still have to pay taxes in Sweden (unless done in a fraudulent way)...
It seems to me you will end up paying more...
As stated before, look at creating a local company first to optimize...

Thank you sir for the knowledge!
,

DunderMannen · Sep 5, 2020

Completely unneccessary since I believe you don't make a ton of money (?)

Start an AB, pay your business tax and take "aktieutdelning" every time you file taxes. That way you'll have to pay a lot less in taxes.

To get a little more money under the table out of the company; since your company is IM marketing, buy electronics and sell them locally for cash.

Intofantasy · Sep 5, 2020

DunderMannen said:
Completely unneccessary since I believe you don't make a ton of money (?)

Start an AB, pay your business tax and take "aktieutdelning" every time you file taxes. That way you'll have to pay a lot less in taxes.

To get a little more money under the table out of the company; since your company is IM marketing, buy electronics and sell them locally for cash.

Im making 20k+ usd profit every month.
Im not braging or anything about my income just want to resolve this with lowest tax.

DunderMannen · Sep 5, 2020

Intofantasy said:
Im making 20k+ usd profit every month.
Im not braging or anything about my income just want to resolve this with lowest tax.

Ah, then it'w actually worth looking into. What about starting your holding vompany in Ireland instead?

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