Estonian company with sole director living in Malta – tax residence?
Hi everyone,
I’m looking for some practical experience with an Estonian company being managed from Malta.
We’re three equal shareholders planning to set up an e-commerce company in Estonia. I’m resident in Malta and would be the sole active director and only person involved in the day-to-day management. The other two shareholders would be completely passive.
The company would be incorporated and registered in Estonia, with all physical operations outside Malta (inventory, fulfilment, shipping and production in Estonia). Accounting, statutory filings and company records would also be maintained in Estonia.
The company would have no office, employees, warehouse or customers in Malta. However, I would carry out my role as director remotely from my home in Malta.
My main question is: Would Malta consider the company tax resident there because its sole active director is managing it from Malta, despite the company being incorporated and operationally based in Estonia?
And if so, how would this work in practice given the Malta–Estonia double tax treaty?
I’m also curious whether working from my private home could create a permanent establishment in Malta.
I’ve already contacted the Maltese tax authorities for guidance, but would love to hear from anyone who has dealt with a similar Malta/Estonia setup in practice.
Thanks!