12.03.2025
Understanding the Tax Implications of the Malta Nomad Residence Permit
Malta has become a top destination for digital nomads, offering a unique blend of Mediterranean charm, robust infrastructure, and an attractive residency program. The Malta Nomad Residence Permit allows remote workers to legally reside in Malta while maintaining employment with a company outside the country. This permit is exclusively available to third-country nationals, those who are not from the EU, EEA, or Switzerland, and who rely on telecommunications technology to work remotely.
The permit is initially granted for one year and can be renewed for a limited number of times. While this program provides a fantastic opportunity for remote workers seeking a Mediterranean lifestyle, it is important for permit holders to be aware of the tax obligations upon relocating to Malta.
Tax Considerations for Digital Nomads in Malta
Once in Malta, digital nomads must register for income tax and are required to file income tax returns. Here are the main tax implications:
Exempt foreign income: Income from foreign dividends, interest, and royalties is typically not subject to taxation in Malta if it is not remitted to a Maltese bank account.
First 12 months tax exemption: For the first year following the issuance of the Nomad Residence Permit, income derived from authorised remote work is exempt from Maltese income tax.
Flat tax rate after 12 months: Following the initial 12-month period, a flat tax rate of 10% applies to income derived from authorised work.
Definition of authorised work: Authorised work includes any services provided by the digital nomad to individuals and companies located outside Malta, as well as business activities conducted abroad.
Double taxation agreements: Malta has treaties in place with numerous countries to prevent double taxation, ensuring that income is not taxed twice in different jurisdictions.
How We Can Help
Fairwinds Management can assist with:
- Navigating the tax landscape as a digital nomad in Malta can be complex, but our team of expert accountants and tax advisors at Fairwinds Management is here to assist you. We offer comprehensive services including:
- Guidance on double taxation agreements to ensure you do not face unnecessary tax burdens.
- Registration for an income tax number upon your arrival in Malta.
- Assistance with compiling and filing your income tax returns.
Additionally, if you require assistance with the full application process for the Malta Nomad Residence Permit, our team is equipped to handle everything from start to finish, including the necessary tax considerations that come with the permit.
Get in Touch
If you are considering making Malta your next home base as a digital nomad, or you are already here residing with this permit, reach out to our team today for expert advice and professional assistance in managing your residency and tax obligations. Let us help you make the most of your time in Malta while ensuring compliance with all regulatory requirements. For more info please visit: https://fairwindsmanagement.net/services/accountancy-services/malta-nomad-taxation/, or get in touch with us today: info@fairwindsmanagement.net.
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.