I put in new residency program in Latvia, the wealthy non-EU citizens have a great interest recently, the possibility of a fast-track, flexible system, a permanent resident of the European Union (Schengen area) in exchange for having noticed the manufacture a deposit in a bank or Latvian € 300,000 or $ 400,000.
The Parliament of the Republic of Latvia has approved amendments to the Immigration Act provide “additional options for obtaining a residence permit in the Republic of Latvia.” On July 1, these changes came into force last year.
New residency program in Latvia has faced political processes, including a former mayor of Moscow, for his strong criticism of the Latvian Government has recently requested known to remain in the program. E ‘was also criticized by other EU countries, with the argument that species are carried out by the Mafia criminal easy access to the EU.
But, as with the residency program in Latvia Malta, as residents remain option scheme 2004 was officially known that we have written in the past to compare?
First, the two countries are in the Schengen area, which means that residents can move freely. Most of Western Europe Latvia However, in the frozen north, while Malta in the warm Mediterranean Sea. I have been to both and neither of them is perfect … Latvia freezing winters are long and cold … just that. If you want the cold, I find it much better climate of Andorra, Andorra and ski well at least. Andorra is not technically within the Schengen area, but for all practical purposes, so that we can prepare. Separate articles on Andorra to stay another time in Malta, however, is the most populous country in Europe, and is dry and dusty. It does not have many beaches, has a certain charm, but southern Europe.
What about taxes? Both countries are fiscally resident in principle on their worldwide income.
In Latvia, the income tax is 25%, while the corporate tax rate is 15%. There is a special tax incentives in Latvia for employees of foreign companies that are out there.
In Malta, the ones that meet the residents Scheme Regulations 2004 (the program will pensioner Maltese) and the requirements apply some with a certificate. Approved by the Commissioner of Inland Revenue (Malta) is issued, this certificate serves a dual purpose: first, when Malta was granted a residence permit under Article 7 of the Immigration Act affects it. Secondly, it gives the individual a special tax status Maltese, i / give her on this significant tax advantages.
The people of this state should be a flat rate of 15% on income Maltese local (including capital gains) and its foreign income remitted to Malta to pay. There is a minimal fee? 4192 foreign income not in Malta -., In other words, they are earned, the income of the entire world or not acquired, capital gains or anything else - is not taxable at all. You can have Business trip to Latvia and Malta.
It gets better. The people who may be in possession of this type of residence permit Malta double taxation with respect to income paid out in Malta Malta, subject to tax in Malta is to reach the taxes paid. This advantage makes the most sense, given the extensive network of double taxation agreements that Malta is now closed.
Who runs a local business? There is a big difference between the two programs. In Malta, the residents are simply not allowed under this scheme to run a business. You need to be recovered, although of course there is no prohibition on running a business out of Malta. A Maltese residents can an offshore company safely through a fiscally transparent LLC instance Nevis, and the proceeds offshore banking law completely free of tax in Malta.
In Latvia, the entrepreneurs who want to invest in local companies, encouraged open arms. In this case, no bank deposit is required, only an investment in a local company, which a thing can be. How to € 36,000 The business is expected, however, with a minimum of € 28,000 to pay taxes every year.
In general, Latvia would be a good choice for business travelers who be in Northern Europe. For example, if you are doing business in Russia, when Latvia was an excellent base. However, if you’re like most of our readers are more interested in running an internet business or simply for the management of the investment portfolio, with the use of basic business structures, we believe that the tax burden and quality of life, both for Maltese residence Option.