New tax rules for Nomad Residence Permit holders

Nomad Residence Permit Malta

By virtue of LN 277 of 2023, last December Malta has introduced new tax rules applicable to Nomad Residence Permit holders.

Individuals who are issued with a residence permit after 1st January 2024, will be subject to income tax at a rate of 10% on income derived from ‘authorised work’.  The new rules indicate the reporting obligations, being to register for income tax purposes, report the income received, file an annual income tax return, and pay tax as required.

However, Nomad Residence Permit in Malta are still able to benefit from the double taxation relief as per Malta’s tax treaties, and in such case, they must provide proof of paying taxes outside Malta at a rate of at least 10% on such income, and therefore that would not have to pay the 10% income tax in Malta.

It’s important to note that individuals who already hold a Nomad Residence Permit shall not be subject to income tax on the income from ‘authorised work’ derived prior to 1st January 2024.

For any questions about taxes in Malta, and tax compliance, please do not hesitate to contact us on [email protected].

Nomad Residence Permit

The Malta Nomad Residence Permit, is open to individuals who can work remotely and independent of location, meaning they are not tied to a specific office or desk. The Nomad Residence Permit enables holders to retain their current employment based in another country whilst legally residing in Malta for up to a year, with the opportunity to renew if the applicants meet the eligibility criteria. Applicants must prove they can work remotely, either for an employer or as a freelancer and earn at least €32,400 gross of tax a year (updated to €42,000 as from 1st April 2024).

This article is for information purposes only and should not be construed as legal advice.

Article written by Ms Charlene Sciberras, B.A. (Hons), guest writer, is a marketing and business administration specialist with a special focus on corporate, accounting, and legal matters.

Sciberras Advocates founded by Dr Adrian Sciberras, is a law firm based in Malta. The firm prides itself to be multi-disciplinary, innovative and flexible in order to meet the changing times and any challenges in the local and international legal scenario. No matter what private or corporate complex demands are called for, Sciberras Advocates offers practical and cost-effective legal solutions to achieve your desired results. You may reach Sciberras Advocates by phone on +35627795222 or via email on [email protected].

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