禁漫天堂

Sounds like you should maybe speak to a specialist because you are quite confused, but its nuanced and situation specific.

There is also quite an extensive double taxation treaty in place between Malta and US.

The tax they refer to wrt remittence is income tax, as you had already paid income tax on your income the treaty should cover this.聽 You are always going to pay sales tax same as you would when spending money in US shops.

Thanks Volcane - very helpful.聽 the sales tax is no question - was just used to show total tax exposure on a single purchase.聽 Using the rent payment example, if the money we have in our US bank account was derived from employment income, then it has already been taxed, by the IRS.聽 To then use that money to wire to our landlord to pay rent (after becoming a tax resident) and then be hit with a 35%聽 (assuming that bracket for sake of discussion) tax on top of that, does not seem right.聽 What if the landlords bank is in Croatia - for example.聽 Why would it be subject to Maltese taxation?聽 Nothing is adding up to us despite talking to tax lawyers/experts in Malta - and quite frankly, it is freaking us out as we count down the days to our move!!!! We were told to look for a US-based tax consultant who is an expert on Maltese tax - have been looking for 24 hours - none seem to exist 馃槓

Again you have to study the double taxation agreement in addition to what you are saying above.

And given the severe consequences of getting this wrong, well, again speak to a professional.

Especially as Americans it's even worse since you are charged TAX on global income and any income taxes you paid elsewhere is essentially credited against your US taxes.聽 For Americans there really are very minimal benefits.

The treaty is here