Malta Publishes Residence Permit Guidelines for Nomads

Malta Tax and Customs Administration issued guidelines on the income tax treatment applicable to individuals holding a Nomad Residence Permit, which grants a third-country national a license to perform work in Malta limited exclusively to “authorised work” under the Immigration Act.

“Authorised work” is defined as the type of activity in which the services are provided in accordance with a contract of employment, in which the employer cannot be resident in Malta and cannot carry out business in Malta as a fixed place of business there. The non-resident employer is not required to fulfil any requirements related to the employment of the nomad resident permit holder, as it assumed that an eligible applicant shall continue to work for their non-resident employer during their entire stay in Malta, and such non-resident employer does not become resident for tax purposes in Malta.

After receiving the Nomad Residence Card, eligible main applicants will be automatically registered for tax purposes with the Malta Tax and Customs Administration. They are subject to a tax rate of 10% on income derived from authorised work. Any other income is subject to tax in Malta according to the applicable provisions of the Income Tax Act, and such other income shall constitute the last part of the person’s total chargeable income for that year. If the applicant is longer be eligible for nomad status (for instance, they get employed with a resident of Malta), any income earned would be subject to the standard progressive tax rates.

No tax shall be chargeable on income derived from authorised work before the end of 12 months from the later of:

– the date on which the nomad residence permit is issued; or

– January 1, 2024.

However, the applicant may be subject to tax with immediate effect if they file a written declaration with Residency Malta Agency by January 31 of the year immediately following the basis year, clarifying the nomad status of their residence, which has been lasting for the first 12-month period of their stay in Malta.

It is important to note that the nomad status does not grant tax residency in the country.

Nomad Residence Permits – Guidelines