Tax for Malta’s Nomad Residence Permit Holders

The Nomad Residence Permit allows holders to retain their employment based in another country whilst legally residing in Malta. The Permit is only open to individuals who must be third country nationals (non-EU, non-EEA, and non-Swiss nationals) and who can work remotely and independent of location, using telecommunications technologies. The permit is typically granted for one year but can be renewed for a limited number of times.

Those nomads who are granted a Malta Nomad Residence Permit need to consider tax obligations once residing in Malta, as tax considerations and obligations might arise under both foreign and Maltese legislation. To this fact, digital nomads must register for income tax upon arrival in Malta and are required to file income tax returns in Malta.

The key tax implications include:

  • For the first 12 months from the permit issuance, income derived from authorised work is exempt from Maltese income tax.
  • After the initial 12 months, a flat income tax rate of 10% applies to income from authorised work.
  • The regulations consider as authorised work any services provided by a digital nomad to companies and individuals located outside Malta, as well as any business activities conducted by the digital nomad abroad.
  • Malta has double taxation agreements with many countries, which can help prevent individuals from being taxed twice on the same income.
  • Income from foreign dividends, interest, and royalties is generally exempt from taxation if not remitted to Malta.

It is important to note that a Malta Nomad Residence Permit holder must register for income tax once in Malta and is required to file income tax returns in Malta. Our team of accountants and tax advisors here at Fairwinds Management can assist you with the registration of an income tax number, compile and file income tax returns on your behalf, and guide you on the regulations for double taxation agreements to ensure you are not being taxed twice on the same income.

Malta company formation

If instead you are looking for assistance with the full application for a Malta Nomad Residence Permit, our team can also assist with handling the application process from beginning to start, including also handling any taxation matters that come with this permit.