Becoming A Nomad In Malta

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Find out why nomads are increasingly calling Malta home

Since its introduction in 2021 to meet increasing demand for a straightforward route to Maltese residency by the growing cohort of digital nomads, over 1,000 people have obtained the Nomad Residence Permit (NRP). Many are attracted to Malta for its culture, lifestyle options and connections to European destinations – not to mention the strong country-wide internet coverage. The Covid-19 pandemic caused a boom in location-independent remote work, as companies worldwide adapted their systems to enable staff to work from home. As the pandemic subsided and travel restrictions were lifted, not everyone returned to the office, and the digital nomad culture – simmering underground for over a decade – burst into the mainstream and created new opportunities for countries like Malta. Similarly, professionals and creatives working on a freelance basis, requiring just a laptop and an internet connection, are realising that they can live better, and more cheaply, in locations away from the big economic hubs. Why pay exorbitant rent in a rainy city, when you can get a beachfront apartment for half the price?

Today, Malta boasts a growing digital nomad community, with dedicated co-working spaces and frequent networking events. Beneficiaries of the NRP can also take advantage of the Schengen Area to travel around Europe without the need to obtain separates visas for each country, multiplying their opportunities and opening up a world of pan-European travel.

Applicants should note that in April 2024, the minimum eligible income was increased, and applicants are now required to prove they have a gross annual income of €42,000. At the same time, the maximum stay was extended to four years – in response to the demands of many nomads who find Malta to be a welcoming base they might even call home.

NRP Tax Implications

An update to the NRP’s tax rules for 2024 and beyond allows beneficiaries to benefit from a 10 per cent income tax rate on ‘authorised work’, which is effectively work falling under the categories eligible for the NRP. If such income is subject to tax in another jurisdiction with which Malta has a double taxation agreement, no additional tax is payable in Malta. Additionally, for the first 12 months, there is no requirement to pay tax in Malta unless desired.

This is a major improvement over the previous rules, where NRP beneficiaries faced rates of up to 35 per cent. However, prospective beneficiaries should bear in mind that this favourable tax rate does not apply to income outside the scope of the NRP, such as dividend and interest payments, which would be subject to Malta’s general tax rules.

The changes bring more certainty to an area that was sometimes subject to confusion, but the new rules’ caveats will likely require the input of a local tax professional for beneficiaries to gain maximum benefit.

NRP Eligibility Criteria

Nationality

Applicants must be citizens of a country outside the EU or EEA, and cannot be Swiss. They also cannot be citizens of countries currently subject to international sanctions. It is recommended to refer to the NRP FAQ on the Residency Malta website (residencymalta.gov.mt) for an up-to-date list of such countries.

Nature of work

NRP applicants cannot work with or for a Maltese company, nor offer their services locally. They must show that they fall into one of three categories, which constitute ‘authorised work’:

They work for an employer registered in a foreign country and have a contract of work;
They are a partner or shareholder in, and conduct activities for, a company registered in a foreign country; or
They offer freelance or consulting services under contract to clients whose permanent establishments are in a foreign country.

Income

Applicants must be able to prove that they earn a gross annual income of €42,000.

Background check

Applicants must have a clean criminal record and must not pose any threat to national security, public policy, public health, or public interest.

NRP Application

Application and duration

NRP applications can be submitted directly by the applicants themselves to Residency Malta, the agency operating the scheme. The permit is valid for up to one year and is renewable for up to three years.

Property

Applicants must present a valid rental or purchase agreement upon approval of their application.

Application fee

Each applicant must pay a non-refundable administrative fee of €300. This only covers the individual, so the same fee applies to each dependant. Permit renewal requires the resubmission of this fee.

Visa requirements

Successful applicants who do not require a visa can proceed to Malta upon approval, but citizens of over 90 countries do require a visa to enter Europe. Applicants from these countries must obtain a national visa from the state-run Identity Malta agency before travelling to Malta.

Applicants must also be in possession of a valid travel document, comprehensive health insurance and, when travelling across Schengen, must take out travel insurance.

More information about the Nomad Residence Programme can be found on the website of its operator, Residency Malta (residencymalta.gov.mt), a dedicated Government-run agency.