Malta Digital Nomad Residence Scheme

What is the Malta Digital Nomad Residence Permit?

Malta’s Nomad Residence Permit – A Gateway to European Living

Malta’s Nomad Residence Permit is an appealing residence scheme that is available for non-EU nationals wishing to relocate to Malta (the smallest EU member) whilst retaining their current employment.

The scheme has become a popular choice for a rapidly increasing number of digital expats who perform their work remotely while enjoying the many advantages of living in Malta.

A digital nomad is a person who works for companies registered abroad and performs his/her job remotely using digital technology. During the last few years both employers and employees have shown a marked increase in interest for this type of remote working.

Who is eligible for a Malta Nomad Residence Permit?

There are transparent rules on who is eligible to apply.

Applicants must be third country nationals. In addition, the applicant must:

be able to carry out his/her work remotely via telecommunications technology;
be an employee of a company that is registered abroad with an employment contract or be self-employed as a partner or shareholder in a company registered abroad or provide services on a freelance basis to clients located abroad and with whom the applicant has business contracts;
be able to provide proof of sufficient and stable income to support his/her living expenses in Malta (at least €42,000 gross yearly income);
pass a background verification check;
be over 18 years of age;

Note: Applicants with foreign work contracts for the provision of services to Maltese subsidiaries are not eligible.

For any clarifications or additional information, do not hesitate to contact us

Application Process for the Malta Digital Nomad Permit

The application process is quite transparent, with step-by-step instructions that are easy to understand with transparent eligibility criteria.

The application process is set out below:

The applicant must submit his/her application and supporting documents via the Residency Malta Agency’s online portal (see below the complete list of documents required);
The fee of €300 must be paid per applicant via bank transfer, directly from the main applicant’s bank account;
On receipt of payment the processing time for applications is quite fast – 1-2 months from submission of the application;
On completion of background checks, a letter of approval will be issued for successful applications;
Within 30 days from the date of the letter of approval, the applicant must submit proof of accommodation covering the whole duration of the residence permit and a health insurance policy that covers the applicant and his/her dependents;
After this a letter of final approval is issued;
The applicant will be notified to arrange for an entry visa to Malta if he/she requires it;
On arrival in Malta the applicant must arrange an appointment in person for the provision of the applicant’s biometric data;
After 3-4 weeks the residence card is issued. The applicant is notified when he/she can pick up the card from Residency Malta’s offices. The fee of €27.50 per residency card must be paid in person;

A Malta Nomad Residence Permit is valid for 1 year from the date of the issuing of the Residence Card.

The renewal process:

As from 1^st April 2024, individuals can renew their Nomad Residence Permit three times with a maximum stay of up to 4 years (instead of the current 3 years).

If the applicant wishes to renew his Nomad Residence Permit, it is his/her responsibility to apply for the renewal 2-3 months prior to the expiry date. For renewal applications, after receipt of the letter of approval, all necessary documents must be submitted within 21 days prior to the expiry of the Nomad Residence Permit.

Documents Required for the Malta Nomad Residence Permit

Application form N4 – each applicant needs a separate form;
Consent forms – that need to be signed by parents for minor dependents;
Copy of valid passport for each applicant – all pages of the passport must be copied (including the blank pages);
Letter of Intent – the letter must be signed and dated and it must be written by the main applicant. It must explain that the applicant wishes to apply for the Nomad Resident Permit and the reasons for relocating to Malta;
Original Police Conduct Certificate – for the main applicant and all dependents over 18 years of age;
Proof of accommodation – for example, a rental contract that covers the whole duration of the permit or property purchase agreement;
Bank statement and other documents – indicating the applicant’s monthly employment income for the last 3 months;
Proof of financial resources – the main applicant must provide proof of a guaranteed income source for a minimum period of 5 months from the date of application;
CV/resume – the main applicant’s latest CV;
Employment contract – for applicants that are already employed – stating clearly the applicant’s position within the company, the current duties and confirming that the duties can be performed remotely;
Marriage Certificate – must be provided if the applicant is married and his/her spouse is part of the application. For couples that are not married and have been in a relationship for a minimum of 2 years, they must provide proof of their relationship, such as utility bills, travel tickets, photos, bank statements etc;
Birth Certificate – if children are included in the application, a copy of each child’s birth certificate is required;
Health insurance – a valid health insurance covering in-patient as well as out-patient medical expenses with a minimum limit of €30,000 per person under the main application;
Declaration to engage a representative – if the applicant wishes to engage the services of a representative to assist with the application process, a signed declaration must be submitted;

Self-employed applicants
For self-employed applicants, the bank statement must show the income from self-employment for the last 3 months. Furthermore, a Certificate of Incorporation and a Share Register must be provided.

Freelance applicants
For freelance applicants it is necessary to provide service contracts with details of the type of work provided and the rate of payment for each type of work. The bank statement must indicate income from the activities outlined in service contracts for the past 3 months.

If moving to Malta as a digital nomad sounds good to you, contact us to assist you with the process so you can start your adventure with confidence

Advantages of working as a Digital Nomad in Malta

Malta provides an ideal setting for digital nomads looking to combine professional growth with leisure and lifestyle enhancement. The digital nomad can enjoy a number of benefits for the duration of the permit validity, such as:

Favourable tax regime – Nomad Residence Permit holders enjoy zero personal income tax for the first year of residence in Malta (starting from the date of issue of the Nomad Permit). Thereafter a flat rate of 10% will apply for income earned from authorized work. See further details about this below;
Access to Europe’s Schengen Area – allowing permit holders visa-free travel throughout the EU;
Easy access between Europe and other continents – by air and sea travel due to Malta’s convenient location in the middle of the Mediterranean sea;
Reasonable cost of living – if we compare the cost of living with other countries;
Idyllic Mediterranean location and weather – you can enjoy an active outdoor life with Malta’s sunny climate, rich history, natural beauty with diverse landscapes, wonderful cuisine and relaxed lifestyle;
Diverse and lively culture – Malta has a large community of expats from all over the world;
Networking opportunities – when you join the growing community of digital nomads;
Safety – Malta is one of the safest countries to live in in the EU, with a low crime rate in comparison to other countries;
Good health services and schools – Malta has many well-known private clinics and health centres and excellent schools with a wide selection of learning options;
The right to reside in Malta for one year – with the possibility of another 3 renewals;
The Malta Nomad Residence Permit is family friendly – family members can be granted resident permits for the same duration as per the digital nomad;
Flexible property requirements – there is no threshold on the value of the property purchased or leased;
High quality internet – making remote working easy;
Ease of conducting business – Nomads can take advantage of the island’s business support system and support services provided by the Government and also English is widely spoken in Malta;

Malta Nomad Residence Permit and Tax Advantages

1 Year Tax Exemption

The main permit holder who is performing authorized work can benefit from a tax exemption on the income derived from the authorized work for 12 months from the date of issue of the Nomad Residence Permit or from 1^st January 2024, whichever date is later.

After the initial 12 months, the primary applicant who continues to perform authorized work will be subject to a fixed income tax rate of 10% on chargeable income, and is also subject to the double tax treaties between Malta and other states to avoid the income being taxed twice.

Nomads who earn income chargeable to tax in Malta must register for income tax and file returns in Malta. This applies to all Nomads who have received their Residence Permit after 1 January 2024. Getting advice from someone who knows their way around taxes here – like an accountant or a professional – is smart because they’ll help ensure that everything is done correctly while also pointing out any deductions or exemptions you could use.

Family members of Digital Nomads

Family members / dependents (spouse, under aged children, adult children who are single and are dependent on the Applicant) have the opportunity to apply for a Residence Permit together with the Nomad Residence Holder for the same period as the digital nomad;
The same application procedure is used (as described above for digital nomads) to obtain a Nomad Residence Permit for family members;

Conclusion

Wrapping things up, the Malta Nomad Residence Permit is a golden opportunity for digital nomads and remote workers seeking to live in an exciting Mediterranean spot in the heart of Europe.

Choosing this nomadic life in Malta opens doors to a vibrant community of like-minded individuals, endless opportunities for networking and new adventures.

Embrace the nomadic lifestyle with Malta as your base and immerse yourself in the European lifestyle while maintaining your professional endeavours.

If moving to Malta as a digital nomad sounds good to you, contact us to assist you with the process so you can start your adventure with confidence

Our Malta Operations

Our network firm in Malta, FBS Trust Limited, is regulated by the Malta Financial Services Authority and is licensed to provide corporate services. FBS Trust Limited is a leading Malta trust and corporate services provider offering a full scope of services including incorporation / registration of all legal entity types.