Non-EU remote workers can get one-year residence under €300 'nomad permit'

Owners of a company conducting business activity, remote workers and freelancers offering consulting services to international clients, can now become digital nomads in Malta.

Malta sells citizenship to the global elite for €1.1 million, but is now giving non-EU nationals a one-year residence permit – dubbed the ‘nomad residence permit’ – to work remotely in Malta for €300.

“This initiative will see Malta jump on the bandwagon of increased demand for remote working globally, as the pandemic shifted goalposts and new trends are being set. Individuals who can work remotely using technology and entrepreneurs with a flair for travelling and discovering new countries and cultures are being made welcome in Malta,” parliamentary secretary for citizenship Alex Muscat said.

He boasted of Malta’s mild climate, English-speaking workforce, rich history and excellent healthcare, and explained the rationale behind the new residence permit for itinenerat non-EU nationals seeking easy access to the eurozone.

“The new Nomad Residence Permit is yet another initiative taken to attract foreign consumption in Malta,” he said.

To be eligible for the Nomad Residence Permit, applicants must prove that they can work remotely and independent of location, using telecommunications technologies.

In addition, they must be third country nationals.

The applicants must prove that they fit under any one of the three following categories:

a) work for an employer that is registered in a foreign country and have a contract of work;

b) conduct business activity for a company that is registered in a foreign country and of which applicant is a partner/shareholder; or

c) offer freelance or consulting services mostly to clients, whose permanent establishments are in a foreign country, and with whom the applicant has contracts.

Moreover, applicants must reach a monthly income threshold of €2,700 gross of tax. Additional eligible family members will have thresholds set in line with Residency Malta Agency Policy.

Standard rules and procedures for obtaining visas and similar permits will also apply, in addition to the proof of eligibility.

As opposed to the Single Work Permit, the Nomad Residence Permit enables holders to retain their current employment based in another country whilst legally residing in Malta. This may also be renewed at the discretion of Residency Malta Agency, as long as the applicants still meet the set eligibility criteria.

Nomad Residence Permit holders will not be subject to personal income tax since their employment is already taxed at origin. Nonetheless, they will be subject to consumption tax like all other residents.

Self-employed individuals offering their services to companies registered and based in Malta would need to pay taxes in Malta and apply for a residence permit based on their self-employment.

People willing to move

Charles Mizzi, CEO of Residency Malta, said that the COVID-19 pandemic had shown that people are willing to move more than ever before.

“Early to recognise the signs, Residency Malta has launched this new permit that allows digital nomads to come to Malta and work here, while enjoying all the perks that Malta offers foreigners,” he said. “The process is simple and we promise an efficient service that discerning nomads expect.”

Anton Sevasta, CEO of Identity Malta Agency said that the new visa service to nomad applicants was part of the new Premium Visa Service which Identity Malta Agency will be launching in the coming weeks.

“The service is a door-to-door option intended for highly skilled professionals in order to streamline the process without compromising the due diligence process,” he said.