Living in Malta with a US LLC – Launch Tax-Free in Europe
Living in Malta with a US LLC is a smart combination increasingly used by digital entrepreneurs, investors, and nomads. Malta is not only a sunny EU island nation with a high quality of life, but also a popular residence for those looking to save taxes legally. Combined with a US LLC, global income can, under certain conditions, be kept tax-free. In this article, we’ll show you how to get started, how the model works, what to watch out for, and who it’s best suited for.
Why Choose Malta as Your Country of Residence?
Malta offers a unique combination of:
- 0% income tax on foreign income that is not remitted to Malta (under the Non-Dom status)
- EU membership, English-speaking population, and a stable banking system
- No crypto tax on long-term capital gains
- Attractive programs for digital nomads, entrepreneurs, and remote workers
Especially interesting: You can live in Malta while generating your income through a US LLC – and pay no income tax in either country, if structured correctly.
What Is a US LLC?
A Limited Liability Company (LLC) is a popular US legal structure that:
- Requires no minimum capital
- Limits liability to business assets
- Is available to non-residents outside the US
- Is treated as a pass-through entity for tax purposes
Profits from the LLC are passed directly to the owner – but not taxed in the US if the income is not US-sourced.
Tax Optimization with a US LLC + Malta
| Area | Benefit |
|---|---|
| In the US | No income tax for foreign-owned LLCs without US-sourced income |
| In Malta | Only income remitted to Malta is taxable |
| LLC Profits | Can be held offshore – tax-free in Malta if not transferred |
| Crypto & DeFi |
Tax-free capital gains on long-term holdings |
What that means:
As long as you don’t transfer profits from your LLC into Malta, you pay no tax in the US or Malta.
Example: Entrepreneur in Malta with a US LLC
Anna is an online coach living in Malta on a remote worker visa. She forms a US LLC in Wyoming, invoices international clients through the LLC, and keeps the earnings in a US business bank account. She pays:
- 0% US tax, since no income is sourced from within the US
- 0% Maltese income tax, since she doesn’t remit the funds to Malta
Result: 100% legal, tax-free setup with EU residence and access to all benefits within Europe.
Important: What You Need to Consider
- You should have Non-Dom status in Malta (standard for most foreigners)
- LLC profits must not be remitted to Malta – otherwise they become taxable
- Annual tax filing in Malta is still required
- The LLC must be properly structured and filed in the US (Forms 5472 & 1120)
Who Is This Model Ideal For?
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Digital nomads
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Crypto traders & Web3 investors
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E-commerce entrepreneurs
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Agencies & online freelancers
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Consultants & coaches with international clients
Conclusion: Living in Malta with a US LLC = Tax-Free, Legal & Efficient
If you live in Malta and earn your income through a US LLC outside the US, you can operate in an extremely tax-efficient and legal way.
You enjoy the benefits of EU residency, pay no income tax, use a globally recognized company structure – and remain fully compliant.
LLC formation
Start your own US LLC – ideal for online entrepreneurs, freelancers, and digital nomads.