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In an effort to support individuals holding a Nomad Residence Permit issued by Residency Malta Agency, the Minister of Finance has introduced special tax regulations (referred to as the ‘Rules’) via Legal Notice 277 of 2023, published on December 7, 2023.
Key highlights:
- Flat Rate of 10% on Qualifying Income:
Under the Rules, income derived from authorized work (termed as ‘Qualifying Income’) will now be subject to a flat income tax rate of 10%, with the added benefit of double taxation relief. - Exemption for the First 12 Months:
Qualifying Income earned within the initial 12 months from the issuance of the Nomad Residence Permit or from January 1, 2024 (whichever is later) will be exempt from income tax in Malta. This exemption applies if the Qualifying Individual’s presence and residence in Malta during this period were of a casual nature. - Bypassing Final Settlement System Rules (10% tax even on overtime):
Overtime income will not be subject to the Final Settlement System Rules, Subsidiary Legislation 372.14 of the Laws of Malta (according to the Rules, 15% to be paid on overtime). Qualified overtime income of Nomads remains to be subject to a flat tax rate of 10%.
However, we recommend conducting a case-by-case assessment of the tax profile for the employer or client of the Qualifying Individual.
For a more comprehensive understanding of these exciting developments, we encourage you to get in touch with us!
Understanding the Digital Nomad Visa in Malta:
The Digital Nomad Visa in Malta is a groundbreaking initiative introduced to facilitate the influx of remote workers and freelancers who wish to set up their virtual offices against the backdrop of Malta’s stunning scenery. This visa allows individuals to work from the comfort of their chosen locations, whether it be a bustling urban environment, or a serene coastal spot. Malta offers it all.
Key Features of the Digital Nomad Visa:
The Digital Nomad Visa in Malta is open to individuals who work remotely, providing them with an opportunity to reside in Malta for an extended period while continuing their professional activities.
Applying for the Digital Nomad Visa is a streamlined process. Nomads need to submit proof of employment, a valid passport, proof of income, and evidence of health insurance coverage.
The visa is typically granted for a specific duration, allowing digital nomads to enjoy an extended stay in Malta. Extensions may be possible, depending on individual circumstances.
Benefits of the Digital Nomad Visa in Malta:
All nationals are welcome: incl. Non-EU citizens and their family members
Networking Opportunities: Malta has a growing community of digital nomads and expatriates, providing ample opportunities for networking, collaboration, and the exchange of ideas.
Work-Life Balance: With a pleasant climate, outdoor activities, and a relaxed pace of life, Malta encourages a healthy work-life balance, allowing digital nomads to recharge and stay productive.
Freedom of movement: free to travel within the Schengen Area for a maximum of 90 days in a rolling 180-day period.
The Digital Nomad Visa in Malta represents a forward-thinking approach by the Maltese government to embrace the changing nature of work. This visa not only provides digital nomads with a unique opportunity to live and work in a captivating Mediterranean setting but also contributes to the local economy and promotes cultural exchange. As more individuals seek the freedom to work from anywhere, Malta stands out as a welcoming destination that seamlessly blends work with leisure for the modern digital nomad.
Contact us today for more information!
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