Features
TYPE
LENGTH
FEE
MIN ANNUAL INCOME
LOCAL TAX
INTERNET
COST OF LIVING
RECOMMENDED Digital Nomad Visa
MALTA
Nomad Residence Permit
Island life in an English-speaking country, with no income tax for a year!
Midway between Europe and Africa, the beautiful island of Malta is an excellent place to catch the sun all year long while working remotely & enjoying great internet speeds! Malta’s Nomad Residence Permit is a one-year-long permit for non-EU nationals, that comes with 1-year income tax exemption (but not for everyone). The only problems are the pollution levels that are one of the worst in Europe.
PROS
- European country with year-round great weather
- Aside from Maltese, English is the official language
- Strong internet connection speeds & great coverage
- Low compliance risks i.e. you pay your tax at home
- There are no physical stay requirements
- Freedom to travel and stay in the Schengen zone (90 out of any 180 days)
CONS
- Fairly high cost of living
- Huge issues with pollution
- Not available for people without tax residency
- Tax examinations have not yet been written into the local tax laws
- More work is needed to create a true sense of community for Global Nomads
- Might be soon added to tax blacklists
- Generally very safe but there are some issues with scams & corruption
Specification: MALTA
Nomad Residence Permit
Taxes
Local Taxes
We were told by the Residence Malta Agency that Nomad Residence Permit holders will not be subject to personal income tax since their employment is already taxed at the origin (back home). There were some issues with No Legal Bases for Digital Nomad Tax Exemptions in Malta but in Dec 2023 Malta finally announced long-awaited tax legislation on income tax for digital nomads, offering a 12-month exemption from the date of nomad residence permit issuance and a subsequent 10% tax rate on authorized remote work, complete with double taxation relief and specific reporting requirements. Read the latest info in Malta Announces New Income Tax Rules For Digital Nomads.
Digital nomads will still need to show that they are paying taxes back home and should have an employment contract with a company registered abroad or should offer service only to third parties outside Malta. If the services are provided to individuals and companies outside of Malta, local company/payroll registrations are not required.
Theoretically, Nomads who are self-employed are not prohibited from providing services to Maltese companies and customers, but if they do, they will have to apply for a different residence permit based on their self-employment in Malta, register, and pay local taxes in Malta.
Home Country Taxes
Holders of the Nomad Residence Permit are expected to pay taxes back home. As part of the application process, you need to include documents that prove that you pay tax back in your home country.
If you don’t have a tax residency back home anymore, you will have some issues and might not get the nomad visa or will be considered a tax resident of Malta. Please always check with local tax advisors before committing.
Other Benefits
Malta has been well known as one of the most tax-efficient places in Europe. Malta has territorial taxation so even if you do become a resident, you will only be taxed locally on income earned for work done for Maltese companies if any. Any foreign income of the tax resident is not taxed if not remitted to Malta. As for the Capital gains? If they are arising outside Malta they will remain non-taxable in Malta (even if remitted to Malta). Depending on your circumstances, Malta gives you a lot of opportunities to lower your taxes, if you put correct structures in place.
This is all great! However, due to Malta’s recent tax transparency issues, it might pretty soon end up on tax blacklists. This would mean Malta would be subject to various sanctions which would make doing business much more difficult by for example applying withholding taxes at a higher rate on payments received in blacklisted jurisdictions.
Requirements
To apply remote workers must be from Non-EU, EEA, and Switzerland. Additionally, they can’t be from any currently sanctioned countries (see FAQs for list). They also need to fall under one of the 3 categories. They need to be either:
- remote employee – work for an employer registered in a foreign country and have a contract of work;
- self-employed – conduct business activities for a company registered in a foreign country and of which applicant is partner/shareholder; or
- offer freelance or consulting services, mostly to clients whose permanent establishments are in a foreign country, and with whom the applicant has contracts.
All applicants must have a gross annual income threshold of EUR 32,400 which is roughly US$ 36,000. This threshold will be higher for any additional family members. All supporting documentation must be submitted in English.
The required documents include:
- Filled Application Forms N1, N2, and N4;
- Letter of Intent stating motivations for moving to Malta & list of documents you are attaching;
- Passport Copy (all pages incl. blank ones);
- Proof of remote working by including either:
- An Employment Contract and any official tax documentation (where applicable) proving that you can perform your work duties location independently;
- Evidence of owning a company and being self-employed in it, official tax returns, financial statements, certificates of incorporation, etc.
- Evidence of freelance activities such as contracts with clients, rates, duties, but also one-year bank statements and corresponding invoices;
- Signed CV, listing education & experience;
- Bank Statements showing min income for the last 3 months;
- Comprehensive Local/International health insurance policy for all applicants for the whole length of stay in Malta; Plus a signed Health declaration stating that the applicant will cover all health costs that insurance won’t cover;
- Marriage certificate, birth certificate, Name Change proof, proof of relationship with dependents (if applicable);
- Proof of Accommodation – rental, lease, or purchase agreement. Initially, you can submit it for a temporary period, which will later need to be followed by proof of accommodation for the rest of the stay.
Apply
Process
1
Fill out Application & Gather All the Documents
2
Send Everything via Email to receive payment instructions. Pay the Fee.
3
Application Review
4
Receive Permit Approval
5
Arrive and Pick up the Nomad Residence Permit
Application review, which includes authorities running all the background checks, is expected to take up to 30 days following receipt of all required documentation.
If you are a third-country national you might also require a visa to enter Malta. You can apply it after your Residence Permit has been approved. The permit is issued for one year and can be renewed upon application, for a max period of 3 years, as long as the applicant still meets the set eligibility criteria.
Fees
The application fee is €300 for each applicant which comes to about US$ 350/pp. It is payable during the application process and is not refundable. If you are a third-country national who requires a visa to enter Malta, you will also need to pay an extra €300 for Premium Processing of the visa before you arrive. If you don’t require a visa, there are no extra fees.
How
All the details of the program, including How to Apply are available on the government website:
Facilities
Medical
Similar to other Digital Nomad Visas, you are not entitled to free health care but can use the local health care system if you pay for it out of your pocket or with the insurance. You do need to have insurance that covers you in Malta in order to apply for the visa so you should be sorted before you arrive.
Schools
Children of the visa holders can attend the local private school for the duration of the visa or public ones but in both cases, they will have to cover the fees. Malta has a wide choice of public and private schools with a curriculum based on the British model.
Traveling
This is one of the best parts, a holder of the Nomad Residence Permits doesn’t need to spend any particular amount of time in Malta, so for example, if you are not from the European Union, you are able to freely travel to and stay in any country in the Schengen zone for 90 days within a 180-day period.
Community
There is a number of co-working spaces, 19 to be exact according to Co-Worker, and a lot of options for accommodation but not so many community living spaces. The other thing that is still missing is a bigger sense of community and opportunities for Nomads to connect, attend events, organize outdoor activities, and find ways in which they can give back to the local community.
Assistance
There are basic information on the Malta Nomad Residence Permit website and some contact details for Nomads to use, but not nessesery a dedicated line to reach out to in case of issues. There is also definitely more that can be done in terms of information provided on the website especially in terms of things to do and services that can be accessed locally.
Tel: (+356) 22034000
Email: [email protected]
Country Info
Internet
The average internet speeds are around 85 Mbps and with 87% of the population having access to broadband, you should not have issues with your wifi in Malta. This will be enough not only for day-to-day browsing and zoom calls but also for heavy streaming and fast downloading big assets. On top of that, most of west Malta is also 5G ready.
Cost of Living
Malta is not one of the most affordable places on our list but if you are used to prices in the US, the UK, or other Western European countries then you will find it a little bit more affordable, but not much. It is after all an island so most of the products are imported and more expensive. Compared to other parts of central or Eastern Europe, the overall cost of living will definitely be higher.
That said, according to our ☕ Cappuccino Index, which uses Numbeo’s average price for a regular cappuccino, the USD price in Malta is $2.60 which is below the US avg of $4.30 and the UK avg price that is $3.83.
FAQs
What is the difference between a Nomad Residence Permit and National Visa or Single Work Permit?
A Nomad Residence Permit will be issued for one year and can be renewed upon application at the discretion of Residency Malta Agency if the applicant still meets the set eligibility criteria.
Some Applicants, who are third-country nationals, might also require a National Visa to enter Malta.
The Single Work Permit authorizes third-country nationals to legally reside and take up employment in Malta for a defined period.
On the other hand, the Nomad Residence Permit enables holders to retain their current employment based in another country whilst legally residing in Malta. This may also be renewed at the discretion of Residency Malta Agency, as long as the applicant still meets the set eligibility criteria.
How should one apply for a Nomad Residence Permit?
An applicant who would like to apply for a Nomad Residence Permit is to submit an application with scanned copies of all supporting documentation stipulated on the checklist published by Residency Malta Agency, including a letter of intent explaining the motivations for the desire to obtain a Nomad Residence Permit. The letter of intent should also clearly state the intention of the duration of stay. Applications should be sent to Residency Malta Agency via email at [email protected].
Applicants who intend to spend up to 180 days in Malta will be issued with a National Visa while those who intend to spend up to 365 days or more will be issued with a Residence Permit.
Does a Nomad Residence Permit holder need to register his/her employment?
Only in cases where the permit holder is employed with or giving services to a Maltese company, in which case permit holders are required to register their employment/self-employment with Jobsplus. This is not the case for Nomad Residence Permit/Visa holders. Further information regarding registration of employment/self- employment may be obtained by contacting Jobsplus on [email protected].
Should I notify Residency Malta Agency in case of a change in address or any other change to the application?
Any changes to the application are to be communicated to Residency Malta Agency within one week by submitting Form N3, together with a copy of the new proof of accommodation against payment of EUR 27.50. Failure to do so may entail the revocation of the residence permit.
What are the countries currently sanctioned and therefore not eligible to apply for Nomad Residence Permit?
Nationals from the currently sanctioned countries of (or have close ties with) Afghanistan, North Korea, Iran, Democratic Republic of Congo, Somalia, South Sudan, Sudan, Syria, Yemen, and Venezuela are ineligible.
Additionally, applications from the Russian Federation and the Republic of Belarus are currently not eligible.
The list of ineligible countries may be revised from time to time by the Agency at its discretion.
Videos
Source: Residency MaltaDisclaimer: Our aim is to provide an overview of Digital Nomad Visas & Taxes that should not be considered as a legal opinion or tax advice. You should always seek expert advice. If you want to receive a legal opinion or tax advice please contact us and we will refer you to a legal practitioner.
Learn about the data sources & how is the score calculated. Last updated December 15, 2023.
