Recent Amendments to the Nomad Residence Permit

Authors: Ann Bugeja & Miguel Mallia

Outlining the Nomad Residence Permit

The Nomad Residence permit enables those global nomads who work remotely and independently of location by using telecommunications technology, to retain their employment in another country whilst residing in Malta.

This permit was launched in 2021 and is open to Third Country Nationals (TCNs). The Permit is issued on an annual basis, renewable at the discretion of Residency Malta if the applicant continues to meet the eligibility criteria for such a permit.

Introducing the April 2024 Amendments

The amendments issued by Residency Malta Agency, enforceable on the 1st of April 2024 introduce an increase in the minimum Gross Annual Income requirement and an additional increase in the maximum stay period of permit holders.

Increase in minimum Annual Gross Income requirement;

• Applicants must display a minimum annual gross income of €42,000 from the prior requirement of €32,400.

• Such an amendment, due to its enforceability on the 1st of April shall not be applicable to applicants currently applying for a renewal nor applicants who have submitted their application before the 1st of April 2024 and their application is still pending.

Increase in the maximum stay period (the number of times the permit may be renewed);

• Applicants and permit holders may renew their permit for a maximum stay of 4 years instead of the 3-year period prior to the introduction of the amendments.

• The option for the maximum stay period is open to all applicants upon the renewal of their permit.

In addition, it is also pertinent to note that from the 1st of January 2024, as per the Nomad Residence Permits (Income Tax) Rules, permit holders shall be charged a rate of 10% on “authorized work”, subject to any double taxation relief.

“Authorized work” is defined as being;

“services provided by an eligible main applicant in accordance with a contract of employment with an employer who is not resident in Malta and who does not carry on business in Malta through a fixed place of business, or services performed  by  an  eligible  main  applicant  in  a  self-employed capacity for clients who do not reside in Malta and who do not carry  on  business  in  Malta  through  a  fixed  place  of  business, which services, in either case, are provided remotely by means of telecommunications technology as may be approved by Residency Malta Agency”

Where the residence in Malta is of a casual nature, then the permit holder shall not be liable to income tax on “authorized work” carried out in Malta for the first 12 months on the issuance of the Nomad Residency Permit or the 1st of January 2024, whichever is the latest. Such a non-liability on income tax can be waived upon the applicant’s declaration with Residency Malta Agency that even throughout the 12-month period stipulated, his/her work is not of a casual nature.

Conclusion

The amendments provided above aim to contribute further to the Nomad Residence Permit’s success prior to its launch in 2021. It is also noteworthy to state that there are additional eligibility criteria for the Nomad Residency Permit which have not been affected by the mentioned amendments therefore remaining as they are prior to such amendments.