Malta’s Nomad Residence Permit for Remote Workers

Malta’s Nomad Residence Permit for Remote Workers 

Malta, with its strategic geographical location, Mediterranean climate, and high standard of living, is an attractive destination for individuals seeking a new destination to reside.

Traditionally, living in Malta required securing employment with local businesses or studying at Maltese institutions. However, the introduction of the Nomad Residence Permit (NRP) means you no longer need to rely on these traditional methods. Instead, you can live in Malta while working remotely for non-Malta-based entities.

What is the Nomad Residence Permit (NRP)?

The Nomad Residence Permit is designed to attract freelancers, digital nomads and all individuals holding non-EU citizenships, who want to reside in Malta and are working remotely for a foreign entity or servicing foreign clients. This initiative caters to the growing global trend of remote working, enabling individuals to legally reside and work from Malta, even when their work is unrelated to Maltese businesses.

Eligibility Criteria

To qualify for the Nomad Residence Permit, applicants must meet several criteria:

1. Remote Work Capability: Applicants must demonstrate their ability to work remotely using telecommunications. They should be:
   • Employees of a non-Maltese company, or
   • Shareholders in a non-Maltese company, or
   • Freelancers servicing non-Maltese clients.
2. Income Requirement: Applicants need to provide evidence that their annual gross income exceeds EUR 42,000.
3. Health Insurance: Applicants must have health insurance covering all risks in Malta and EU.
4. Accommodation: Proof of renting or purchasing property in Malta is required.
5. Background Check: Applicants must pass a background verification check.

Upon satisfying these conditions, applicants will be granted a residence permit valid for one year, which can be renewed upon expiry, subject to relevant conditions.

Tax Considerations

As of 1^st January 2024, eligible income generated by Nomad Residents will be subject to a 10% tax (instead of 35%). Moreover, the Nomad Residents may enjoy full tax holidays for the first 12 months of residence in Malta.

This change in law provides clarity for residents on their tax obligations, ensuring they can plan their finances effectively while residing in Malta.

How AE can Help

AE Business Advisors, with over 25 years of experience in legal, corporate, tax, and financial advisory, are registered with the Residency Malta Agency and all other competent authorities as accredited agents for immigration programs. We provide comprehensive guidance and support throughout the relocation process, ensuring compliance with Maltese laws and regulations. Our firm assists with all necessary paperwork, ensuring a seamless transition to your new home in Malta.