Table of Contents Why Proper Deregistration Is Crucial When Moving to Malta Deregistering Your Place of Residence: Navigating Administrative Hurdles Tax Deregistration When Moving to Malta: What You Really Need to Know Insurance and Moving to Malta: Cancel, Pause, or Transfer? The Ultimate Malta Relocation Checklist: Authorities and Deadlines at a Glance Common Mistakes When Deregistering in Your Home Country and How to Avoid Them Frequently Asked Questions Why Proper Deregistration Is Crucial When Moving to Malta Do you know what I learned first after moving to Malta? That deregistering in your home country isn’t just some annoying paperwork you can take care of quickly. It’s a strategic move that can save you thousands of euros every year. I speak from experience—and from mistakes I was lucky enough to correct in time. Here’s the deal: As long as you’re still officially registered in Germany, Austria, or Switzerland, you’re considered fully liable for taxes (meaning the tax office can tax your worldwide income). No matter if you’ve moved to Malta—the tax authorities in your home country will still view you as a full-fledged taxpayer. And let me tell you: They’re sticklers for details. Avoiding Double Taxation Imagine this: You pay 35% corporate tax in Malta (which you partially get back through the refund system), yet the German tax office demands income tax on the same income again. The double taxation agreement (DTA) might help in theory, but in practice it gets complicated and expensive. An international tax advisor easily charges €200–€400 per hour—and you’ll need them more often than you might like. For this article, I spoke with three tax advisors specializing in international cases. All three confirmed: Clean deregistration saves on average €15,000–€25,000 a year in taxes and advisory fees. Social Security and Health Insurance Then there’s social security. In Germany, if you’re a resident, you’re automatically covered by statutory health insurance—which costs at least €160 a month even if you’re living in Malta with private insurance. Austria and Switzerland have similar approaches. The Austrian regional health insurance fund once told me: As long as your main residence is in Austria, you are required to have insurance. Period. End of story. That’s €1,920 a year for coverage you don’t actually use. Legal Consequences of Incorrect Deregistration This is where it gets serious: Incorrect or late deregistration can be classified as tax evasion. No joke. In 2019, the Munich Fiscal Court ruled on a case where a German living in Spain had to pay €180,000 in back taxes plus interest—because he failed to deregister properly. What does this mean for you? Take deregistration seriously. Plan it carefully. Stick to the deadlines. Because even a small mistake can be expensive and a real headache to fix. Deregistering Your Place of Residence: Navigating Administrative Hurdles Now let’s get practical. Deregistering your place of residence is the first and most important step. I’ll walk you through how it works in Germany, Austria, and Switzerland—and the pitfalls you need to watch out for. Germany: Deregistration with the Registration Authority In Germany, you deregister at your local registration office (usually the Citizens’ Office or municipal administration). You can do this no earlier than one week before your planned move-out date. You’ll need: ID card or passport Deregistration confirmation (get the form onsite) Landlord’s confirmation (if you’re renting) New address in Malta (if already known) The process takes 10–15 minutes and is usually free. You’ll receive a deregistration certificate—keep this safe, you’ll need it for everything else. Important: Deregistration must take place within two weeks after moving out. Too early isn’t allowed; too late can cost up to €1,000 in fines. I was a day late once—got a €25 warning fine. Annoying, but manageable. Austria: Residence Registration and Main Residence It’s a bit more complicated in Austria. You have to distinguish between main and secondary residences. The main residence is where you spend most of your time—this is key for taxation. Deregistration is done at your local registration authority. You’ll need: Photo ID Residence registration form (provided onsite) Confirmation of new address (Malta) Cost: Usually €5–€15. Deadline: Within three days after moving out. Missing this deadline can incur a fine of up to €726. Special note for Austria: You must also inform the authorities if you are moving to another EU country. This is a separate form and is very important for tax purposes. Switzerland: Checks on Deregistration Day Switzerland is thorough. Deregistration is handled by the residents’ registration office of your municipality. Sometimes, someone may even check on-site to confirm you’ve actually moved out. You’ll need: ID card or passport Residence or settlement permit (for foreigners) Proof of new address Deregistration must be done no later than 14 days after departure. Fees vary depending on the municipality (CHF 10–50). Special Considerations for Multiple Residences This is tricky: If you had multiple legal residences, you must deregister all of them. I know someone who forgot their secondary residence in Munich—two years later, they had to pay an additional €3,200 in secondary residence tax. The rule is simple: Deregister all places of residence before moving to Malta. This includes Alpine vacation homes, and even that small apartment you only occasionally use. Country Deadline Cost Special Notes Germany 2 weeks after moving out Usually free Landlord confirmation required Austria 3 days after moving out €5–15 Additional notification for EU moves Switzerland 14 days after moving out CHF 10–50 Possible on-site check What does this mean for you? Plan deregistration as a fixed appointment in your moving schedule. Don’t just “get to it sometime”—choose a specific day. Keep a list of all your places of residence so you don’t forget any. Tax Deregistration When Moving to Malta: What You Really Need to Know This is where it gets serious. Tax deregistration is the heart of your exit strategy. This is where you determine if you’ll really save on taxes—or end up paying double. Here’s the system, step by step. Changing Tax Residency to Malta: The 183-Day Rule The key term is tax residency. That’s where you pay your taxes. In most countries: If you spend more than 183 days a year somewhere, you’re considered tax resident there. But beware: The 183-day rule is just a guideline. Far more important is your center of vital interests. The tax authority asks: Where is your true center of life? Where’s your family? Where do you primarily work? Where are your main economic ties? An example from my experience: A German business owner spent 200 days in Malta, but his company, family, and main business all remained in Germany. The tax office still classified him as a German tax resident. Result: €89,000 in back taxes. Informing the Tax Office in Time You must inform the tax office of your move abroad. Do this via the “Notification of Move Abroad” form. In Germany, this form is easy to find; in Austria, it’s called “Notification of Change of Residence”; in Switzerland, it depends on the canton. Key information on the form: Date of moving out (exact) New address in Malta Reason for moving (work/private) Intention to return (important: check “no”) Economic ties in home country Send the form to your local tax office, ideally via registered mail. Deadline: No later than with your next tax return, but ideally right after you move. Obtaining a Tax Residency Certificate from Malta The German tax office will ask for a Tax Residency Certificate from Malta. You can get this from the Maltese tax authority (Inland Revenue Department). It takes 2–8 weeks and costs around €35. This certificate proves you’re tax resident in Malta. Without it, the German tax office will be reluctant to accept your non-residence status—and that’s trouble you don’t want. Exit Tax: The Price of Goodbye If you hold business shares or certain securities, you may face an exit tax. Basically, the tax office treats it as if you’ve sold everything on the day you move, and taxes any hidden reserves. You’re affected if you have: At least 1% shareholding in corporations Managing director shares (even below 1%) Certain securities totaling over €500,000 The good news: You can apply for a deferral if you move within the EU (i.e., Malta). The tax is still owed, but you only pay when you actually sell the shares. Filing Your Final Tax Year Correctly Your final tax year in your home country is a “short year.” You’re taxable only up to your move-out date. That means: Income before your move is taxed as normal Income after Malta residency is reported in your Maltese tax return Annual allowances are prorated Example: You move on June 30th. Your German basic allowance of €10,908 (2023) is reduced to €5,454 (6/12 months). Important: File your tax return in full anyway, but make clear you were taxable in Germany only up to your departure date. Document Purpose Deadline Cost Notification of Move Inform tax office With next tax return Free Malta Tax Residency Certificate Proof of tax residency Within 3 months approx. €35 Short year tax return Settling final home country tax year July 31 of the following year Free What does this mean for you? Treat tax deregistration as a multi-step process. Inform the tax office on time, get the Malta certificate, and settle your final year correctly. That way, you’re on the safe side. Insurance and Moving to Malta: Cancel, Pause, or Transfer? Insurance can be complicated. Some policies you can simply cancel; others you should pause; still others can be transferred to Malta. Here’s which approach makes sense for each type of insurance. Health Insurance: Straddling Home and Malta Health insurance is a real minefield. Once you deregister in Germany, your obligation to have statutory health insurance automatically ends. That’s a plus—you’ll save €160+ per month. But: If you return to Germany later, getting back into statutory health insurance is difficult. You’ll often end up in expensive private health insurance or have to make high back payments. My recommendation: Statutory insurance: Cancel your policy and take out a private plan in Malta (EU-compliant, €800–1,500/year) Private insurance: Put your coverage on hold (“Anwartschaft,” €15–50/month), or extend it to cover Malta Civil servants: Aid payments usually continue, adjust your private supplementary insurance as needed Important: Malta has a good healthcare system, but as an EU foreigner you aren’t automatically insured. You’ll need private coverage—this is required for many residency programs. Pension Insurance: German Pension in Malta Good news: Your German pension insurance continues in Malta. You can even keep making voluntary payments (currently €83.70 to €1,357.80 per month). Your pension will be paid to you in Malta later. Here’s what to do: Notify the German pension insurance about your new address in Malta Submit a proof-of-life certificate once a year (proving you’re still alive) Clarify tax treatment (Malta may tax German pensions) Austrian and Swiss pensions work similarly but have different forms and deadlines. Contents and Liability Insurance This one’s clear: Cancel. Your German contents insurance won’t cover your belongings in Malta. Same for private liability insurance—it’s usually only valid in Germany. In Malta, you’ll need: Malta Home Insurance (similar to contents insurance, €200–400/year) Public Liability Insurance (private liability, often included in home insurance) Maltese insurance is cheaper than German policies, but often offers less extensive coverage. British providers like AXA or Middlesea are recommended. Car Insurance and Your Vehicle If you bring your German car to Malta, things get tricky. You have 6 months to register the vehicle in Malta. After that, you’ll need Maltese car insurance. Your German car insurance can usually be cancelled without issue. Some insurers offer an “international move” option—but that rarely pays off. Important: Maltese car insurance is expensive (€1,500–3,000/year for a midsize car). Many Malta residents therefore drive small cars or use public transportation. Life and Disability Insurance Be careful with these. Many life insurance policies continue in force if you move within the EU. Just make sure to notify your insurer. With disability insurance, it’s trickier. Some insurers terminate coverage if you move abroad; others add an extra charge. Check your contract carefully or have an expert look it over. My tip: Don’t cancel these types of insurance hastily. They can be invaluable, and are usually hard to replace in Malta. Insurance Recommendation Deadline Malta Alternative Statutory health Cancel By month-end Private health (€800–1,500/year) Private health Pause/extend Per policy Often international coverage Contents/liability Cancel Per policy Malta Home Insurance Car insurance Cancel Per policy Malta Motor Insurance Life insurance Let run – Usually not needed What does this mean for you? Go through your insurance policies systematically, at least 3 months before you move. Don’t cancel everything blindly—check each contract individually. Some insurances are worth their weight in gold and hard to replace. The Ultimate Malta Relocation Checklist: Authorities and Deadlines at a Glance Here’s the practical part: Your step-by-step checklist for a smooth deregistration. I’ve broken it down by timing so you don’t forget anything and can get everything done in time. 6 Months Before Moving to Malta This is the strategic phase. Sort out the big questions and start planning your deregistration. Consult a tax advisor about exit tax and tax residency Review insurance policies and check notice periods Inform pension provider about planned move Contact your bank about account management abroad Inform employer if employed (home office regulations) Research Malta health insurance and get quotes 3 Months Before Moving to Malta Now things get concrete. Cancel contracts and organize the move. Terminate your rental contract (usually 3 months’ notice) Cancel insurance policies (contents, liability, car) Cancel broadcasting fee (GEZ) (in Germany) Cancel club memberships Check mobile contract (EU roaming vs. Malta plan) Set up mail forwarding (to Malta address) 4 Weeks Before Moving to Malta The final phase begins. Take care of last details and prep for deregistration. Cancel electricity, gas, water (make an appointment for readings) Cancel internet/phone Tell your bank about the move (register new address) Notify the tax office about your move (submit the form) Book deregistration appointment at the registration office Gather important documents (birth certificate, marriage certificate, diplomas) During the Week of the Move Final spurt! Time for official deregistration and last details. Deregister with the registration office (max 1 week before moving out) Keep your deregistration certificate safe Do handover with landlord (prepare a handover protocol) Have electricity/gas/water readings taken Hand over keys Pick up last mail from the post office After Arrival in Malta Once in Malta, you’ll need to register locally and finish up the process. Register Malta address with Identity Malta (within 3 months) Take out Maltese health insurance Open a Maltese bank account Apply for Tax Residency Certificate (for German tax office) Submit your final tax return in Germany (short year) Inform German pension provider of your new address Important Documents for Deregistration These are the papers you’ll definitely need. Prepare them in advance: Document Purpose Where to Obtain Validity Deregistration certificate Proof of deregistration Registration authority Unlimited Income tax statement Final tax return Employer Current year Social security card Pension contributions Pension fund/health insurer Lifetime Certificate of conduct Malta applications Federal Office of Justice 3 months Apostilled birth certificate Malta authorities Registry office + district court Unlimited Deregistration Costs at a Glance Here’s what you can expect to spend for complete deregistration: Deregistration at local authority: €0–15 Tax consultancy: €300–800 (depending on complexity) Apostille of documents: €10–25 per document Certificate of conduct: €13 Mail forwarding order: €23.90 (6 months) Malta Tax Residency Certificate: €35 In total, you should budget €400–1,000 for complete, professional deregistration. What does this mean for you? Treat this checklist as your project plan. Check off every item as soon as it’s done. And don’t be afraid of the bureaucracy—it’s doable if you take things step by step. Common Mistakes When Deregistering in Your Home Country and How to Avoid Them Here comes the most valuable part: I’ll share the mistakes I made myself or witnessed in others. They can cost real money—and are totally preventable. Mistake #1: Deregistering Too Late This is the classic. You move to Malta in January, but don’t deregister until June. The tax office still considers you a German tax resident for the entire year. Reason: You were registered in Germany most of the year. A friend of mine learned this the hard way: €50,000 in back taxes for deregistering three months too late. The Frankfurt tax office did not compromise. How to avoid this: Deregister no later than two weeks after you physically move. Even better: Plan your move so you can deregister the same or next day. Mistake #2: Forgetting Secondary Residences You carefully deregister in Munich, but forget your secondary residence in Hamburg. The tax office will still consider you a German resident—with all the tax consequences. This is more common than you think, especially with: Vacation homes Shared flats in other cities Registered office addresses Children registered at their parents’ home How to avoid this: Make a list of all your registration addresses, ever. Call every registration authority and confirm you’re no longer registered. Yes, it’s a pain—but cheaper than paying extra taxes later. Mistake #3: Underestimating Economic Ties You move to Malta but keep your German company, German bank account, and German clients. The tax office argues: Your “center of vital interests” is still in Germany. These cases often end up in court. Financial judges look very closely at: Where’s your main bank account? Where are your key business relationships? Where does most of your income come from? Where’s your family? How to avoid this: Really shift your life to Malta. Open a Maltese bank account, develop business ties in Malta, make social contacts. Make Malta your true home, not just a postbox. Mistake #4: Health Insurance Gaps You cancel your German health insurance but haven’t taken out a Maltese policy yet. Then you have an accident—and you’re stuck with the bill. Worse: You cancel German health insurance too early (before deregistering) and lose entitlements or pay unnecessary premiums. How to avoid this: Plan coverage so it’s seamless. End German insurance on the deregistration date, and take up Maltese insurance starting on your Malta arrival day. Mistake #5: No Tax Planning for the Year You move to Malta mid-year without planning the tax impact. The result: You pay too much or too little tax in both countries, or miss needed advance payments. Example: You make €50,000 in Germany up to June, €30,000 in Malta afterwards. Without planning, you pay the full German tax rate on €50,000—even though you’d be entitled to prorated allowances. How to avoid this: Have your tax plan professionally reviewed before you move. Plan both your “short year” in Germany and your first full year in Malta. Mistake #6: Poor Documentation You don’t keep all receipts and certificates. Two years later, the tax office asks for proof—and you can’t find what you need. Especially important: Deregistration certificate Malta Tax Residency Certificate Rental or purchase agreements in Malta Flight tickets and proof of stay Maltese tax returns How to avoid this: Create a “Malta Move” folder (both digital and physical). Collect all key documents and make copies. Spending €20 on copies could save you €20,000 later. Mistake #7: Not Planning for Return You only think of moving out—not the possibility of moving back. If you return to Germany after a few years, resuming social security coverage is expensive and complicated. Example: Without prior insurance periods, you end up in costly private health insurance, or pay high premiums for statutory health coverage. How to avoid this: Research return procedures before moving out. Consider if holding rights to return (like “Anwartschaften” or other “return tickets”) makes sense. Mistake Cost Prevention Deregistering too late €10,000–100,000 Deregister within 14 days Forgetting secondary residence €3,000–50,000 List and check all addresses Economic ties €20,000–200,000 Really move your center of life Health insurance gap €1,000–10,000 Plan seamless transition Missing tax planning €5,000–25,000 Get expert advice before moving What does this mean for you? Learn from the mistakes of others, not your own. Most problems are predictable and avoidable—if you work systematically and get professional help where needed. Frequently Asked Questions Do I have to deregister if I’m only going to Malta for 6 months? It depends. For a vacation or a short workation, you don’t have to deregister. But if you relocate your main center of life to Malta (work, apartment, social connections), you should deregister—even for just 6 months. The 183-day rule is only a guideline. Can I keep my German bank account? Yes, most German banks keep accounts open for customers living in other EU countries. You just need to register your new address. Some banks charge a monthly fee (€5–15) or require a higher minimum balance. What happens to my German pension? Your German pension is paid to you in Malta, even after you deregister. You just have to submit a certificate of life each year. It’s similar for Austrian and Swiss pensions. Do I have to pay tax in Malta on German income? That depends on the double taxation agreement. Pensions are usually taxed in Malta, but with credit for German withholding tax. Business income is more complicated—consult a tax advisor. Can I deregister online? No, you have to deregister in person at the registration office. You can at most make an appointment online. Power of attorney for others is typically not allowed. What if I miss the deregistration deadline? You risk a fine (up to €1,000 in Germany) and tax complications. The tax office could argue you’re still a German tax resident. Complete your deregistration as soon as possible. Do I need a tax advisor for deregistration? For simple cases (employee without assets), you can do it yourself. For business owners, assets over €500,000, or complex family situations, a tax advisor is a must. The €300–800 fee usually saves many times that in taxes. Can I re-register in Germany? Yes, you can return and register in Germany at any time. But health and social security may be more difficult—expect waiting periods and higher premiums. So consider a potential return even before you move out. What about my German driver’s license? You can usually keep it and drive in Malta. If you live in Malta for more than a year, you have to exchange it for a Maltese license. EU licenses are mutually recognized. Do I need to close my German GmbH? No, you can keep your GmbH even if you live in Malta. But: Managing it from Malta can trigger tax issues (“permanent establishment”). Definitely have a tax advisor check this before you move.
