Money - Money - money

Since 2008 Malta’s payment is the Euro. You don’t chance any money. ATM is available everywhere and mostly you choose the language.

A lot of international banks have a branch at Malta. But you can also use your home bank.

When you stay permit on Gozo and you have to pay income tax, will be better to have both, the home bank for the incoming social pension and a Malta bank for the other types of revenue. You can better manage your tax.

All citizen pays income tax between 0% to 35% calculate on the income amount.

Residents (people living more than 183 days per year at Malta) pays income tax for income generate in Malta and foreign countries. Malta and Germany agreed in 2001 a contract “for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital” *).

Article 18

 Pensions, Annuities and Similar Payments

1. Pensions and similar payments or annuities paid to a resident of a Contracting State from the other Contracting State shall be taxable only in the first-mentioned State.

2. Notwithstanding the provisions of paragraph 1, payments received by an individual being a resident of a Contracting State from the statutory social insurance of the other Contracting State shall be taxable only in that other State.

3. Notwithstanding the provisions of paragraph 1, recurrent or non-recurrent payments made by one of the Contracting States or a political subdivision thereof to a person resident in the other Contracting State for damages sustained as a result of war or political persecution or of military or civil service (including restitution payments) shall be taxable only in the first-mentioned State.

 4. The term “annuities” means certain amounts payable periodically at stated times, for life or for a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.

5. Maintenance payments, including those for children, made by a resident of a Contracting State to a resident of the other Contracting State shall be exempted from tax in that other State. This shall not apply where such maintenance payments are deductible in the first-mentioned State in computing the taxable income of the payer; tax allowances in mitigation of social burdens are not deemed to be deductions for the purposes of this paragraph.

 

Par example:

Kind of Income

per month

per year

 

statutory social insurance

1500

18000

taxable in Germany

other annuities

600

7200

taxable in Malta

interes income

200

2400

taxable in Malta but if it regards to foreign property tax free

totals

2300

27600

 

  

From EUR

To EUR

Tax %

From EUR

To EUR

Tax %

From EUR

To EUR

Tax %

 

single

 

 

married

 

 

parents

 

9.100 

0 %

12.700 

0 %

10.500 

0 %

9.101 

14.500 

15 %

12.701 

21.200 

15 %

10.501 

15.800 

15 %

14.501 

60.000 

25 %

21.201 

60.000 

25 %

15.801 

60.000 

25 %

60.001 

35 %

60.001 

35 %

60.001 

35 %