10.09.2025
Key Tax Obligations for Nomad Residence Permit Holders
Malta has quickly become one of the most attractive destinations for digital nomads. With its warm climate, Mediterranean lifestyle, and strong digital infrastructure, it offers the perfect base for remote workers. To support this trend, Malta introduced the Nomad Residence Permit, designed for third-country nationals (non-EU, non-EEA, and non-Swiss citizens) who can work remotely using telecommunications technology.
The permit allows individuals to reside in Malta while keeping their employment or freelance activity based abroad. It is typically granted for one year, with the possibility of renewal for a limited number of times.
While the permit makes life in Malta appealing, holders must also be aware of their tax obligations once relocating. Below we explain the key points digital nomads should know.
Income Tax Registration
Upon arrival in Malta and once the residence card is issued, digital nomads are required to register for income tax and must file income tax returns annually.
First 12 Months – Tax Exemption
For the first year following the issuance of the permit, income derived from authorised remote work is exempt from Maltese income tax.
After 12 Months – Flat Tax Rate
From the second year onwards, a flat income tax rate of 10% applies to income derived from authorised work.
Definition of Authorised Work
Authorised work includes:
Services provided by a digital nomad to companies or individuals located outside Malta.
Business activities carried out abroad.
Foreign Income Exemptions
Income from foreign dividends, interest, and royalties is generally not taxable in Malta as long as it is not remitted to a Maltese bank account.
Double Taxation Agreements
Malta has treaties with many countries to avoid double taxation, ensuring that the same income is not taxed twice. This is particularly beneficial for digital nomads working with clients or companies across different jurisdictions.
Why Professional Tax Assistance Matters
Tax rules for digital nomads in Malta are straightforward in principle but can become complex when cross-border income and multiple jurisdictions are involved. Missing deadlines or failing to register correctly can lead to unnecessary penalties.
At Fairwinds Management, our accountants and tax advisors can assist you with:
- Registration for an income tax number upon your arrival in Malta.
- Preparation and filing of annual income tax returns.
- Guidance on applying double taxation agreements to minimise your tax liability.
- Full assistance with the application process for the Malta Nomad Residence Permit, including related tax matters.
Living in Malta as a digital nomad gives you the freedom to enjoy a Mediterranean lifestyle while continuing your career abroad. By staying compliant with local tax rules, you can focus on your work and lifestyle with peace of mind. Whether you are planning to apply for the Malta Nomad Residence Permit or are already living on the island under this scheme, our team at Fairwinds Management is here to support you every step of the way. Get in touch with us today at 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.