New Tax Rules For Digital Nomads In Malta

On December 7th 2023, the Malta's Finance Minister has issued the Nomad Residence Permits (Income Tax) Rules, 2023. The new Rules concern digital nomads residing and working in Malta as well as applicants currently in the processing stage as well as future digital nomads. An individual who is in possession of a valid nomad residence permit issued by the Residency Malta Agency will be subject to income tax at a rate of 10% on income derived from "authorised work". This is substantial reduction from the progressive rate of taxation which can go up to 35%.

"Authorised work" is defined by the Rules as 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