The Nomad Residence Permits Income Tax Rules governing the taxation of individuals holding a Nomad Residence permit were published on the 7th of December 2023 under Legal Notice 277 of 2023.
According to these rules, third country nationals who hold a valid nomad residence permit will benefit from a reduced income tax rate of 10% on chargeable income derived from “authorised work”. Authorised work includes: -
- services provided by the applicant under an employment contract when employer is not residing in Malta and does not conduct business in Malta through a fixed place of business; or
- self-employed services provided by applicant for clients who do not reside in Malta and who do not conduct business in Malta through a fixed place of business, which services are provided remotely via approved telecommunications technology by the Residency Malta Agency.
Nomad residence permit holders shall not incur income tax charges on earnings derived from authorised work within the initial 12 months following either the date of permit issuance or the 1st of January 2024, whichever is later, provided that the residence during this 12-month period is declared to not be merely of a casual nature.
Moreover, any other income that is received by the applicant and that is subject to tax in Malta, other than that arising from authorised work, shall be subject to standard tax rules. Income that is received by family members of the applicant and that is subject to tax in Malta does not qualify for the reduced tax rate of 10%.
The above is intended to serve for information purposes and does not constitute legal advice. Should you wish to obtain more information and/or specific advice, you are invited to reach out to our team of qualified professionals who will guide you further.
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