20.01.2026
Malta attracts individuals from around the globe due to various factors including its English-speaking environment, its position in the Mediterranean Sea and being in the European Union and in the Schengen zone
In the last couple of years, Malta attracted more than 3 million tourists on a yearly basis. Meanwhile, it also attracts other individuals from third-country nationals who would like to reside and work legally in Malta seeking a better life or a stepping stone to other EU nations.
Apart from the Single Permit issued by Identità, that most third country nationals apply for when they are in Malta or even when they are still abroad, non-EU, non-EEA and non-Swiss nationals who can work remotely independent of where they are based, can apply for the Maltese Nomad Residence Permit issued by Residency Malta Agency.
This means that whoever is in possession of this permit has the legal status to live and work in Malta, however the individual will be working remotely through telecommunication technologies, meaning Malta will act as the base of employment but this work will be done remotely.
This article will explore any tax implications related to this legal status.
Nomad Residence Permit – Tax obligations
Once applied for and approved, the Nomad Residence Permit is issued for a 1-year period, and during those 12 months, digital nomads will not be required to pay income tax in relation to their income generated from their work.
If the nomad requests a permit renewal and this is approved, then a 10% rate will be deducted immediately after the first 12 months on the island in relation to any authorised work, i.e. services provided from Malta to overseas as well as any other work that the digital nomad carries out abroad.
Once in Malta, the Permit holder must register for an income tax number and file income tax returns.
It is important to note that the Maltese islands have double taxation agreements with numerous countries to encourage the growth of international trade, and thus eliminate double taxation in respect of dividends, royalties and income from employment, amongst others. This is beneficial in respect of this Permit as it can help prevent digital nomads from being taxed twice on the same income.
Permit Application and Taxation Assistance
Our team at Fairwinds Management Limited is experienced with such applications and can guide you through the whole application process smoothly. Assistance from our team doesn’t stop there. From experience with clients, we understand how relocating to another country and adjusting to a new lifestyle might be challenging, especially to understand what needs to be done in this whole process to have all papers in order.
Our team can explain the taxation system in Malta, explain the double taxation treaties, assist with the registration of an income tax number, compile and file income tax returns, and any other assistance that you would require. All this will be done under one roof.
If you require any type of assistance, whether in relation to the application process or taxation system, we invite you to get in touch with us on info@fairwindsmanagement.net.
More information: https://fairwindsmanagement.net/services/accountancy-services/malta-nomad-taxation/.
Fairwinds Management Limited is a MFSA licensed firm offering Business Solutions in Malta. As part of our services, we offer Accounting, Administration, Corporate and Legal solutions. Fairwinds Management also manages the brand Accounting Services. More information about us and our key services please visit our website. You may reach Fairwinds Management on +356 2704 0903 or info@fairwindsmanagement.net.
Article written by Ms Charlene Sciberras, B.A. (Hons), guest writer, a marketing and business administration specialist with a special focus on corporate, accounting, and legal matters.