Communicating with Authorities from Your Home Country: How to Correctly Respond to Information Requests Regarding Malta Structures

Table of Contents

• Why Your Home Authorities Can Track You Down in Malta – and What’s Behind It
• These Information Requests Are Guaranteed to Land in Your Malta Mailbox
• Tax Residency in Malta: What You Really Owe Your Home Country
• Step by Step: How to Respond Correctly to Official Requests from Germany
• Swiss and Austrian Tax Authorities: Key Differences at a Glance
• Malta Non-Dom Status: What Information You Must Disclose
• These Documents You Should Always Have Ready
• The Most Common Information Request Mistakes—And How to Avoid Them
• Professional Help: When Are Tax Advisors and Lawyers Worth It?
• Frequently Asked Questions

Why Your Home Authorities Can Track You Down in Malta – and What’s Behind It

Malta has been an EU Member State since 2004—which means: the authorities talk to each other. The automatic exchange of information (AIA) between EU countries ensures your home tax office has a pretty good idea of where you live and what you earn—at least in broad terms.

The Automatic Exchange of Information: Why Secrecy Doesn’t Work Anymore

Since 2017, EU countries have been exchanging financial data automatically. In practice, this means: Open a bank account in Malta, and your home tax office is notified. Work and pay tax here? That info also goes home. According to the EU Directive on Administrative Cooperation (DAC2), this exchange covers:

• Interest income and dividends
• Salaries and other earnings
• Account balances over €50,000
• Insurance payouts
• Rental income from property

What does this mean for you? You simply can’t hide. Transparency and accurate reporting are your safest plan.

Malta Population Register: Why Your Address Doesn’t Stay Private

As an EU national, you’re free to live in Malta—but after three months, you have to register with the Expatriate Unit of the Maltese police. This registration is entered into various databases, and through EU queries, home authorities can find your address.

I’ll never forget my first letter from the German tax office—arriving exactly two months after I registered in Malta. Coincidence? I doubt it.

Common Reporting Standard: Global Flow of Information

Malta participates in the OECD’s Common Reporting Standard (CRS). That means not just EU countries, but more than 100 countries worldwide receive information about your Maltese finances. For most of us, though, the relevant home countries are Germany, Austria, and Switzerland.

These Information Requests Are Guaranteed to Land in Your Malta Mailbox

Not every official inquiry is created equal. Depending on your situation and home country, you might get different types of information requests. I’ll walk you through the most common scenarios and what’s behind them.

Tax Residency Verification: The Classic

This one pops up all the time: Your home country’s tax office wants to know if you really live in Malta—or just on paper. This residency review usually hits when:

• You’ve deregistered in your home country
• You’re missing tax returns
• High income or capital gains have been reported
• Suspicious transaction patterns are spotted

Common questions in these requests:

1. How long have you lived in Malta?
2. How many days per year do you spend in Malta?
3. Have you rented or bought residence in Malta?
4. Where is your central place of work?
5. Where is your primary centre of life?

Income Audit for Malta Residents

Especially if you have high income or hold Malta Non-Dom status, home authorities get curious. They want details:

What income do you earn in Malta, and what comes from abroad?

This can get tricky, since in Malta—with Non-Dom status—only income remitted to Malta is taxed. Your home country may see things differently.

Wealth Enquiries: When There’s Big Money at Stake

For assets above certain thresholds (in Germany currently €1 million per person), your home country can request a breakdown of your total assets. That includes:

• Bank balances in Malta and worldwide
• Properties and their values
• Business holdings
• Securities and investments
• Life insurance and pensions

Social Security Inquiries

These often come from German health insurance or pensions authorities:

• Are you still subject to social security contributions in Germany?
• Where are you health-insured?
• Do you receive Maltese social benefits?

What does this mean for you? Prepare for a range of inquiries and keep a solid record of your Malta residence from day one.

Tax Residency in Malta: What You Really Owe Your Home Country

The million-euro question: Am I still subject to taxation back home, or not? It’s a trickier answer than you might think and depends on several factors.

The 183-Day Rule: More Than Just Counting Days

Almost all EU countries use the 183-Day Rule: anyone spending more than 183 days a year in the country is tax-resident. But beware—this is just one of many criteria.

In Malta, you’re automatically considered tax-resident after 183 days, even if you never register officially. But that doesn’t mean you’re automatically freed from obligations in your home country.

Germany: Address vs. Place of Usual Residence

Germany distinguishes between address and habitual place of residence. Even if you deregister, the following can still make you taxable there:

Switzerland: The Cantonal Complexity

Switzerland is even more complex, as each canton has its own rules. Generally, you remain taxable until you

1. Deregister officially
2. Prove your main centre of life is really in Malta
3. Cut all significant ties to Switzerland

Especially tricky: Swiss authorities look very closely at whether your move was tax-motivated. For assets above 2 million CHF, there’s a departure tax.

Austria: Worldwide Income Principle and Double Taxation Treaties

Austria taxes its residents on worldwide income. That means: As long as you’re an Austrian resident, you must declare all income—including that from Malta.

The Double Taxation Agreement (DTA) between Austria and Malta ensures you don’t pay twice, but you still have to report your Malta income in Austria.

Malta Non-Dom Status: A Hot Button for Home Authorities

The Maltese Non-Dom status is highly attractive from a tax perspective, but a red flag for home authorities. You only pay tax on money you bring into Malta—foreign-source income left overseas remains untaxed.

The problem: Your home country may not see things the same way and still treat you as fully taxable.

What does this mean for you? Settle your tax situation with an advisor before moving to Malta. Fixing things after the fact is stressful and expensive.

Step by Step: How to Respond Correctly to Official Requests from Germany

When that letter with the official seal arrives, panic is the worst advisor. Here’s how to answer in a structured and legally sound way.

Step 1: Check and Take Deadlines Seriously

German tax offices usually give you a 4–6 week deadline for responses. These deadlines aren’t negotiable! If you miss them, the tax office can:

• Estimate your tax (always on the high side)
• Impose fines
• Order an audit

My tip: Respond immediately, even if you’re still gathering documents. Sending a quick email like “Request received, documents are being prepared, response will follow by [date]” buys you some time.

Step 2: Determine the Type of Inquiry

German authorities use different legal bases for information requests:

Step 3: Structure Your Reply Clearly

A good response to German authorities always follows this pattern:

Subject: Your information request dated [date], ref: [reference number]
Dear Sir or Madam,
I am responding to your information request of [date] as follows:

1. Confirm the details: “I confirm that I have lived in Malta since [date].”
2. Answer questions individually: Number your answers to match the request
3. Attach supporting documents: “To support my statements, I attach the following:”
4. Indicate willingness to cooperate: “Should you have any further questions, please let me know.”

Step 4: Gather the Right Documents

For information requests about Malta residence, you’ll usually need:

• Malta Registration Certificate: From the Expatriate Unit or Local Council
• Lease or purchase agreement: Proof of residence
• Utility bills: Electricity, water, internet bills in your name
• Malta Tax Residence Certificate: From the Maltese tax office
• Bank statements: Maltese account as your main account
• Proof of stay: Flight tickets, boarding passes, credit card receipts

Step 5: Consider Legal Counsel

For more complex cases, or larger tax amounts, you should consult a German tax advisor—especially if:

• Estimates are threatened
• Your Non-Dom status is questioned
• Multiple years are affected
• Businesses or property are involved

What does this mean for you? Take official requests seriously, but don’t let them intimidate you. With proper documentation and a structured response, you’ll manage fine.

Swiss and Austrian Tax Authorities: Key Differences at a Glance

Swiss and Austrian authorities operate differently from their German counterparts. Here are the most important distinctions to be aware of.

Switzerland: Different Practices by Canton

In Switzerland, a lot depends on your canton of origin. Zurich, Geneva, and Basel-Stadt are especially strict about Malta moves, while smaller cantons are often more pragmatic.

Typical Swiss Requests:

• Departure declaration: Detailed explanation of your move to Malta
• Statement of assets: Full asset snapshot on your departure date
• Business relationships: Swiss customers, suppliers, investments
• Family status: Where do spouse and children live?

Swiss Departure Tax When Moving to Malta:

Have assets over 2 million CHF? It gets expensive: Switzerland taxes “hidden reserves” and capital gains as if you’d sold everything. This departure tax can also apply even when moving to Malta.

Austria: Global Income Principle and EU Information Exchange

Austrian tax offices keep a close eye on Malta residents, as they take the global income principle seriously.

Key Points for Austria:

• Tax liability until deregistration: Even if staying over 183 days in Malta
• Progression clause: Malta income increases Austrian tax rate
• CFC rules: For controlled foreign companies

Typical Austrian Information Requests:

1. What income have you earned in Malta?
2. Founded or acquired any Maltese companies?
3. What are your worldwide investment earnings?
4. Do you still have Austrian business relations?

Deadlines and Remedies: Country Differences

Avoiding Linguistic Pitfalls

When dealing with Swiss and Austrian authorities, use the correct terminology:

• Switzerland: “Departure” not “move”, “tax domicile” not “residence”
• Austria: “Centre of vital interests” not “main centre of life”
• Both: Precise dates, never vague time frames

What does this mean for you? Learn your home country’s specific regulations and tailor your responses accordingly.

Malta Non-Dom Status: What Information You Must Disclose

The Malta Non-Dom status is brilliant from a tax perspective—but a magnet for home-country officials. Here’s what you’re required to disclose (and what you aren’t).

What Exactly Is Malta Non-Dom Status?

As a Non-Domiciled Resident in Malta, you only pay tax on earnings remitted to Malta (remittance basis). Foreign-source income left abroad is tax-free. Sounds too good to be true—and that’s precisely why home authorities scrutinize it.

The Information You Must Provide When Non-Dom

When authorities request details about your Non-Dom status, you’ll typically need to supply the following:

Basic Non-Dom Information:

• Status proof: Copy of Malta Tax Residence Certificate
• Application documents: Original Non-Dom application with reasoning
• Domicile statement: Why you are not domiciled in Malta
• Length of stay: Exact number of days in Malta per calendar year

Income and Its Taxation:

1. Maltese earnings: Fully taxable in Malta
2. Foreign earnings remitted to Malta: Taxable in Malta
3. Foreign earnings left abroad: Tax-free in Malta

The Remittance Trap: What “Bringing Money to Malta” Really Means

Here’s where it gets tricky. Remittance isn’t just a direct transfer—indirect transfers can also get you into trouble:

• Credit card payments: Using a foreign card for Malta spending
• Online purchases: Amazon orders delivered to Malta but paid from a foreign account
• Investments: Buying Maltese property with foreign money
• Family support: Partner wires money from a foreign account

Documentation Requirements for Non-Dom Status

As a Non-Dom, you must keep meticulous records:

Malta Residence:

• Entry/exit stamps
• Flight tickets and boarding passes
• Credit card statements showing Maltese transactions
• Utility bills and rent payments

Income Tracking:

• Separate accounts for remitted/non-remitted income
• Detailed records of all transfers
• Receipts for all Malta expenses
• Annual calculation of total remittances

Common Points of Contention with Home Authorities

Authorities will almost certainly make these arguments:

Authority: “Non-Dom status is tax evasion and won’t be recognized.”
Your response: “Malta is an EU member with valid double taxation agreements. My Non-Dom status is legal.”

Authority: “You’re still fully taxable in [home country].”
Your response: “I live more than 183 days in Malta and my centre of life is here. Proof attached.”

Defending Your Non-Dom Status: How to Argue Effectively

If your Non-Dom status is challenged, stick to these arguments:

1. Emphasize legality: Malta is an EU member; Non-Dom is EU-compliant
2. Prove substance: Real residence, real business activity
3. Invoke DTA protection: Double tax treaties are on your side
4. Demand proportionality: Insist on respect for EU fundamental rights

What does this mean for you? Non-Dom status is entirely legal—but you must document thoroughly and be prepared to defend yourself against inquiries.

These Documents You Should Always Have Ready

Good documentation is your best defense against information requests. Here’s what you should collect and how to keep it organized.

The Malta Residency File: Your Key Asset

Create both a physical and a digital folder for anything related to your residence status. Your file should cover the following areas:

Section 1: Official Registrations

• Expatriate Registration Card: Key proof of Malta residence
• Local Council registration: Confirmation of residence registration
• Deregistration certificate from home: If available
• Malta ID Card: For long-term residents

Section 2: Proof of Address

• Lease or purchase agreement: Current address in Malta
• Utility bills: Electricity, water, internet in your name
• Malta bank account opening: Declared as main account
• Proof of insurance: Health, liability, home contents

Section 3: Tax Documents

Proof of Stay System: Daily Documentation

Authorities love poking holes in your 183 days—so you need a rock-solid system:

Digital Stay Tracking:

1. Excel spreadsheet: Log location and activity each day
2. Keep all flight tickets: Save every boarding pass
3. Passport stamps: Snap a photo of each stamp
4. Credit card tracking: Transactions show your location

My Proven Stay Table:

Financial Documentation: Transparent Money Flows

Especially with Non-Dom status, you must track every euro:

Account System for Non-Dom:

• Malta Account 1: Only Maltese earnings
• Malta Account 2: Only remitted foreign earnings
• Foreign account: Non-remitted income (never transfer to Malta!)
• Expense tracking: Which account paid for what?

Proof for All Transactions:

• Transfer receipts with purpose
• Credit card statements
• Exchange rate proofs for currency conversions
• Notes explaining larger transactions

Backup Strategy: Never Put All Your Eggs in One Basket

Imagine your laptop is stolen or your flat burns down. So:

• Cloud backup: All documents in an encrypted cloud
• Physical copies: Key documents printed out
• Bank safe: For especially important originals
• Trusted person: Someone who can access in an emergency

Annual Document Review: Keep Everything Current

At least once a year, go through your documentation:

1. Renew expired documents
2. Add new proofs
3. Optimize digital filing
4. Test your backup system

What does this mean for you? Invest time in organized documentation—it’s priceless when the first official letter arrives.

The Most Common Information Request Mistakes—And How to Avoid Them

From my own experience and conversations with other Malta residents, I can say: Most problems with home authorities are self-inflicted. Here are the top pitfalls.

Mistake #1: Ignoring or Underestimating Deadlines

The classic rookie error: You think being a few days late doesn’t matter. Wrong! German, Austrian, and Swiss authorities are ruthless with deadlines.

What Happens If You Miss the Deadline:

• Germany: Tax estimate (not in your favor)
• Switzerland: Fines up to 10,000 CHF
• Austria: Regulatory fines and audits

How to avoid it: Immediately enter deadlines in your calendar and build in margin. My rule: Send your reply at least one week before the deadline.

Mistake #2: Disclosing Too Little or Too Much

It’s a fine balance: Too little information looks uncooperative; too much can be used against you.

Mistake #3: Phone Calls vs. Written Answers

Never give information by phone! The nice case worker on the phone might sound friendly, but everything you say can be used against you later.

Correct reply for phone calls:
“I’ll be happy to answer all questions in writing. Could you please send me an official request?”

Mistake #4: Explaining Non-Dom Status Incorrectly

The Non-Dom status is complex and many people explain it incorrectly to authorities.

Wrong (problematic) explanations:

• “I don’t pay tax in Malta” ❌
• “My foreign income is tax-free” ❌
• “Malta is a tax haven” ❌

Correct explanations:

• “I pay Malta tax on remitted income” ✅
• “Income not brought to Malta is not subject to Malta tax” ✅
• “Malta applies the remittance principle” ✅

Mistake #5: Neglecting Documentation

Many people collect documents, but not in an organized, complete way.

Typical documentation sins:

• Throwing away boarding passes
• Not recording days of residence
• Utility bills not in your name
• Didn’t declare Maltese bank as “main account”
• No systematic remittance tracking

Mistake #6: Emotional Rather than Factual Responses

Information requests can be frustrating, but getting emotional harms only you.

Mistake #7: Contradictory Statements Over Time

Authorities have a long memory. Contradictions between different answers destroy your credibility.

Common contradictions:

• Different Malta arrival dates
• Changing declarations of days spent
• Inconsistent statements about business activity
• Differing asset details

Solution: Keep a “request journal” with all prior responses and statements.

Mistake #8: Legal Advice from Facebook Groups

Malta expat groups are great for restaurant tips, but risky on tax issues.

Typical groupchat “advice”:
“Just ignore it, nothing happened to me!” or “I told them I won’t give information.”

Reality: Every case is different and bad advice can get expensive.

Mistake #9: Skimping on Translations

Maltese documents are often in English or Malti—home authorities expect German/Swiss/Austrian translations.

Translation rules:

• Certified translations: Required for official documents
• Self-made translations: Only for less important proofs
• Include originals: Always send the original as well

Prevention: How to Avoid Problems From the Start

1. Proactive communication: Notify your home tax office of your Malta move promptly
2. Annual updates: Send status updates even if not requested
3. Pre-move consultation: Clarify tax situation beforehand
4. Continuous documentation: Start your record-keeping from day one

What does this mean for you? Most problems come from ignorance and negligence. With a systematic approach, you can avoid 90% of pitfalls.

Professional Help: When Are Tax Advisors and Lawyers Worth It?

I’m a big fan of doing things yourself, but there are times when professional help saves you money and headaches. Here’s my take on when it makes sense.

When You Absolutely Need an Expert

There are situations where expert advice is indispensable. Don’t hesitate if you’re facing any of these:

High Financial Risks:

• Tax back-payments over €10,000
• Tax office threatening estimates
• Departure tax at stake (Switzerland)
• Suspected tax evasion

Complex Structures:

• Maltese companies with cross-border transactions
• Interests in German/Swiss companies
• Property in multiple countries
• Family across different countries

Legal Uncertainty:

• Conflicting interpretations between countries
• New case law or legislative changes
• Double taxation agreement issues
• EU law versus national law

German Tax Advisors: What They Cost and Deliver

German tax advisors vary in their Malta expertise, and not everyone understands international structures.

How to Find the Right German Tax Advisor:

1. Check specialization: Experience with international/Malta clients
2. Request references: Other Malta clients as references
3. Book an initial consultation: Test expertise with concrete questions
4. Assess their network: Contacts to Maltese colleagues?

Swiss and Austrian Experts: Special Considerations

Swiss Tax Advisors and Malta:

Swiss advisors are usually cautious about Malta structures because of strict local authorities. Advantages:

• Intimately familiar with Swiss official practice
• Understand departure tax
• Experienced with cantonal differences

Swiss fees: 200–500 CHF/hour for Malta expertise

Austrian Tax Advisors:

Austrian advisors tend to be more pragmatic with Malta solutions, but you’ll need someone with solid EU law knowledge.

Austrian fees: €120–300/hour

Maltese Advisors: When Are They Useful?

You need Maltese tax consultants and lawyers for local matters, but they often struggle with home-country communication.

Good for:

• Non-Dom applications and renewals
• Malta tax compliance
• Local company formation
• Tax residence certificates

Not suited for:

• German/Swiss/Austrian tax law
• Dealing with home authorities
• Interpreting tax treaties
• Country-specific documentation

The Hybrid Solution: Coordinated Advice

For complex situations, I work with a team of advisors:

• German tax advisor: For dealing with home authorities
• Maltese advisor: For local Malta compliance
• Lawyer (as needed): For legal disputes

Cost advantage: Everyone sticks to what they know best.

When You Don’t Need an Advisor (and Save Money)

Not every request justifies the expense. You can reply yourself if it’s about:

• Simple residency confirmations
• Routine questions about days present
• Standard requests for income information
• Document requests

My Rule of Thumb:

If the potential tax at stake is under €5,000 and the facts are clear, reply yourself. For anything bigger—get advice.

Tax Deductibility of Advisory Fees

The good news: Advice costs for official requests are often tax-deductible.

• Germany: As work-related expenses or extraordinary burdens
• Switzerland: As business-related costs
• Austria: As work-related expenses against income
• Malta: As professional fees for business

What does this mean for you? Don’t avoid advisory costs if a lot is at stake. A well-spent €1,000 can save you €10,000 in trouble later.

Frequently Asked Questions on Malta Information Requests

Do I have to answer every information request from my home country?

Yes, generally you do. As an EU national, you still have disclosure obligations to your home country even as a Malta resident, especially in tax matters. Ignoring requests leads to estimates and fines.

Can I decline to provide information as a Malta resident?

Only in exceptional cases. You can challenge the proportionality of the request or involve a lawyer for problematic questions, but outright refusal is risky.

How long after my Malta move will home authorities react?

Usually 6–18 months after Maltese registration. The automatic info exchange between EU countries means authorities are notified fairly quickly.

What penalties apply for late responses to information requests?

Germany: Estimated tax, fines up to €25,000. Switzerland: Fines up to 10,000 CHF. Austria: Penalties and possible audit.

Does Malta Non-Dom status shield me from home country tax liability?

Not automatically. Non-Dom status only controls Malta taxes. Your home country tax liability depends on residence, days present, and centre of life.

Do I have to translate Maltese documents for German authorities?

Official documents should be translated by a certified translator. For simple proofs (utility bills, bank statements), your own translation plus the original often suffices.

Can home authorities access my Maltese bank information?

Yes, through the automatic exchange of information, home authorities receive annual reports on your Maltese accounts, interest, and large transactions.

How do I document the 183-day rule for Malta correctly?

Keep a daily tracking table with supporting documents: flights, passport stamps, credit card transactions, utility bills. Collect entry/exit stamps diligently.

What happens if I give conflicting answers in different responses?

This hurts your credibility and can result in increased scrutiny. Keep a request journal with all past answers and stay consistent.

Is a tax advisor worthwhile for simple information requests?

If the tax at risk is below €5,000 and things are straightforward, you can usually handle it yourself. For complex or high-value cases, get advice—the fees are often tax-deductible.