Malta Digital Nomad Visa
Digital nomads from the EU are already accommodated and welcomed in Malta. This community of international entrepreneurs fully utilises Malta’s island ambience, nomadic way of life, networking opportunities, and cultural activities.
Nomad Residence Permit
The Nomad Residence Permit enables non-EU/EEA/Swiss nationals (also referred to as third-country nationals or TCNs) to retain their current employment based in another country, whilst legally residing in Malta. The permit applies to persons who can work remotely and independently of location, using telecommunication technologies. The vast majority of Malta’s digital nomads were European citizens, and with the pandemic’s increased demand for remote working, Malta opted to open up the opportunity to third-country nationals as well.
It is a requirement that all company directors in Malta are listed on with the Malta Business Registry (MBR).
Malta Digital Nomad Visa
Everything You Need to Know: Who Can Apply, How to Apply, Permit Duration, and Tax Rules for Malta’s Digital Nomad Visa
Applicants for the Malta Digital Nomad Visa (formally known as the Nomad Residence Permit) must prove that they can work remotely, using telecoms, and fall under one of the following 3 categories:
Employed: Work for an employer registered outside Malta and have a contract of work;
Self-Employed: Conduct business activities for a company registered outside Malta of which the applicant is a shareholder/partner;
Freelance: Offer freelance or consulting services to clients registered outside Malta for which contracts are in place.
The Nomad Residence Permit is available to persons having a minimum gross salary/income of €42,000. Other criteria include having a valid property rental/purchase agreement covering the period of the permit and a valid health insurance policy. The application requirements vary depending on whether the main applicant will be accompanied by dependents in Malta.
Dependents of the Main Applicant may also apply for a residence permit under Malta’s Nomad Residence Permit programme. This covers the applicant’s spouse, minor children, and financially dependent adult children. The primary applicant’s parents and their spouse are ineligible for admission.
The application for each family member must be submitted with the primary applicant’s application, and a government fee of €300 is required.
Additional dependents cannot be added upon the primary applicant has completed paying or been approved. Newborns are an exception to this rule, at which point admission is acceptable. Family members may obtain residence permits, but this does not give them the automatic right to work in Malta. Family members seeking employment must apply for the relevant permit.
Approved applicants will be issued with a work and residence permit valid for 1 year. The permit may be renewed for further 1-year periods up to a maximum stay of 4 years. The applicable fee payable to the authorities for the issue of a 1-year permit is currently €300.
The applicant will be chargeable to tax at the rate of 10% on income from work as employed, self-employed or freelance as per above. However, no tax shall be payable on income from such work before the end of 12 months from the date on which the nomad residence permit is issued.
It is noteworthy that this beneficial rate is exclusively applicable to earnings derived from authorised work and is governed by the applicable anti-abuse provisions.
Any additional income received that is not from employment that is authorised, such as dividends, interest, and the like, shall be governed by general taxation rules as outlined in Malta’s Income Tax Acts.
How Can We Help?
Malta offers a plethora of digital nomad business concepts, such as establishing a company that conforms to EU laws or trading or holding businesses, trusts, or foundations that provide outstanding tax efficiency and flexibility. Our seasoned experts can offer digital nomads the guidance and assistance they need to fulfil the formal criteria for registering a company in Malta. According to our experience, each organisation will have unique requirements; therefore, it is vital to understand the activities required to maintain compliance, as well as to accurately define a firm’s administration and management when forming a company in Malta. Contact us and we will arrange a consultation to discuss the requirements and any additional questions you may have.
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