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Help needed with something that may be confusing

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cjmarschall

Hi,


My wife and I are looking to move to Malta (specifically Gozo) in about 4 years time, my wife will be retired by then .. she is a UK citizen .. I will still have about 5 years left of working, but hopefully will be able to get employment in Gozo or Malta, I have dual nationality of German & UK, we would be moving using my EU German nationality and under EU law my "English" wife would be able to live with me.

Now we have no plans to move back to the UK .. however .. my wife will be receiving her state pension and we are wondering what, if any, tax in Malta she would be subject to.

I've looked on numerous sites and to be honest am more confused now than when I started.

Any help or advise would be appreciated.

Garner9qp

@cjmarschamy husband and myself have just moved to gozo 2 weeks ago ,my husband is retired and gets his state penson .

we had to notify penson office in England.

and no he has no tax on it because he only get that .

Myself I might try getting a part-time job.

We both have our malatese citizenship as my mum was born in malta .

Hope this is helpful ll

GozoMo

@cjmarschallv   Every year its the law here you have to complete a tax return regardless of whether you need to pay tax here or not.   With regards to the UK if your wife has just one pension she probably will not have to pay tax there, they would notify you anyway.

Here you are taxed on the amount of money you bring into the country from your UK bank accounts.

cjmarschall

@GozoMo


Thank you .. so if her state pension is her only income then she would pay Maltese tax on that amount, if it is above the personal allowance level .. would she be taxed on the whole amount or just the amount above the level?

GozoMo

@cjmarschall  She would not have to pay tax on it here if its the basic pension.

cjmarschall

@GozoMo


It would be around £240 (280.48 Euros at current exchange rate) per week (that is estimated allowing for rises over the next 4 years), or 14,584.96 Euros per year, she would not be a tax resident in UK

Evreham

​If this helps, you can find the 2024 tax rates on the Malta IRD website



A married couple can choose to either be taxed as a couple at married rates, or individually as two single rates.

cjmarschall

@Evreham


Yeah seen those, but still doesn't help.


Is there a personal allowance like the UK, which if you earn over you are taxed on the amount over the personal allowance.ie


So assume we have a joint income of 25,000 Euro per year


So we get 12,700 Euro with no Tax which leaves 12,300 Euros for taxation  - We pay 15% tax on 8,499 Euros & 25% tax on 3,801 Euros which equates to a total tax of 2,225.10 Euros per year


At least that is how I see it .. who knows!

GozoMo

@cjmarschall

Four years time tax may have changed by then.

cjmarschall

@GozoMo


Of course, just trying to get my head around the current system

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