Nomad Residence Permit

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The Nomad Residence Permit enables Third Country Nationals to retain their current employment based in another country whilst legally residing in Malta and enjoying all that Malta has to offer. The Permit is open to persons who can work remotely and independent of location, using telecommunications technologies.


Eligibility

Applicants must prove they fall under any one of the following 3 categories:

  • work for an employer registered in a foreign country and have a contract of work;
  • conduct business activities for a company registered in a foreign country and of which applicant is partner/shareholder; or
  • offer freelance or consulting services, to clients whose permanent establishments are in a foreign country, and with whom the applicant has contracts.

Persons contracted by a foreign company and giving services to the company’s Maltese subsidiary are not eligible for the Nomad Residence Permit. The applicants must prove that they have a minimum gross yearly income of €42,000 in order to be eligible for the Nomad Residence Permit.


Requirements 

Applicants must provide, amongst other information and documentation, a valid travel document, proof of income including agreements showing current engagement of employment or contracts with customers outside of Malta, health insurance which covers all risks in Malta and EU and a valid rental or purchase agreement. Applicants should also satisfy the applicable due diligence checks. 


Validity of permit and application fee 

A Nomad Residence Permit is issued for one year (in certain cases it can be issued for 6 months) and can be renewed upon application at the discretion of Residency Malta for a total stay of a maximum 4 years, as long as the applicants still meet the set eligibility criteria. A non-refundable application fee of €300 for each applicant and dependent forming part of the application is payable upon application and every renewal. 


Timeline

Applications are currently processed within 60 days from submission of the full and complete application, including the payment of the application fee.


Taxation

The Permit provides for an exemption from tax in Malta for the first twelve months of residence. During these first twelve months the digital nomads will not be required to pay income tax in Malta on the income derived from authorized work. The starting date of the tax exemption period is either the date the nomad residence permit issuance or 1st January 2024, whichever is the latest. An official request for the exemption would need to be submitted with the Agency in order to avail of the twelve month tax exemption period. 

Following the first twelve months exemption period, the individuals will be subject to a reduced tax rate of 10% on their income derived from authorised work, irrespective of whether the income is remitted to Malta or not since such income would be considered to be derived in Malta and therefore Malta source income. Any other income shall be taxed in accordance with the current Maltese legislation taking into account the residence and domicile of the applicants and the source of the income. 


How BDO Malta can assist

BDO Malta’s Tax Team of specialists possess in-depth knowledge and experience of the related legislation and procedures to assist applicants and their dependants at every stage of the nomad residence permit application. 


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