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Living in two EU countries at once

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Hi all,

 

Someone has a topic with a similar title, but its still not what I am desperately trying to find online for a few months now...

 

I will try to keep it short as to what I would like to do and maybe someone can chime in with some experience or know someone who has done the following.

 

I have a home office job in Germany, I have an unlimited contract and am paid just as a regular person is in any company, I just dont go into the office.  Taxes, salary, health insurance all are paid and standard.

 

Now, I would like to go move to Malta and work from home there, there are several reasons why and wont go into much detail about that, but basically my idea would be to go live there as a tourist.  I will not work there, but basically be a tourist for a longer time.  My wife may find a job there something part time in order to get the residency ID as any EU national would and thats another story which i already have answers to.

 

I guess my main question is can I go there and live but remain my status here in Germany with my salary being paid here, my address registered here and basically nothing changed here in Germany, except that I would be sitting near a beach in another EU member country.

 

Has anyone done this?  Is there anything I should look into...?  I've looked into everything about being in Malta legally, but still need to cover everything from the German side, so i'm really trying to see if its possible?

 

I dont want to do anything illegally and pay for it later :)

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I think the rule is: if you spent more than half of the days in a year in a given country, then you are resident in such country, regardless of your work situation.

I know for good this is the case at least for the UK (at least this is what their taxman wrote in their tax form), I imagine is the same in most countries.

 

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Hi Gambatte,

 

I believe you are speaking of taxes, which i believe doesnt apply in this case as i will not be working there and Malta has a double-tax agreement with Germany.  I think?  I understand that anyone living in a country more than 180 days should pay taxes there, but i thought only if you were making money there?  What if i only took out money from the ATM?

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Think again.

If you become resident in Malta, you have to pay your income tax to Malta and not to Germany, that's what article 15 of the double taxation agreement between Germany and Malta says.

 

A double taxation agreement lays down which country exactly has the taxation rights, it does not allow you to choose to which country you pay your income tax, like you seem to think.

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So how would this work exactly?  From what i've read, for Malta:

 

A flat tax rate of 15% is charged on foreign income remitted to Malta while income which arises in Malta is taxed at a flat tax rate of 35%. In addition, a minimum annual tax of EUR 15,000 is payable (versus the EUR 25,000 for the main applicant and EUR 5,000 for each dependent under the HNWI residence scheme).

 

What you are saying then, is that i would ONLY pay 15% of my taxes on my salary instead of the 40% (or so) here in Germany?  Is this even possible if  its a German employer?

 

Or am i supposed to pay the taxes here in Germany, and if i stay in Malta pay another 15% on top of my salary earnings?

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It would be additional effort for your employer, and only you can judge if he would be willing incur that effort for you or if it wouldn't be easier for your employer to just let you go (= terminate your contract).

 

By the way, your German income tax isn't 40%, you are thinking of the block (20% social security contributions + around 20% income tax) as tax.

It isn't.

 

Worst-case, if you want to hang on to that job, you would have to let your employer deduct German income tax and social security contributions just like for all his other employees, i.e. like you were resident in Germany, and then have to pay additional income tax (= the only "proper" income tax, according to your Maltese resident status) to Malta.

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Yea the 40% is just that block as you said, i'm still single for a few more months until i get married, so i meant the tax class and when i look at the overall net salary in the end, i know its more or less around that number.

 

But yes, that explains it then.  I just need to see how much the tax would be in this worst case scenario and if its worth it to pay all those taxes and what i would get in the end on my account...

 

I just dont want to do anything that can jeopardize my status in Germany or anything illegal here.  Maybe i can just settle for like a 4-5 month stay in Malta during the nicer summer months in order to avoid the whole thing.

 

Thanks for the  pdf agreement you sent me btw!

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