Articles | Expat Money®

Living Abroad With A Digital Nomad Visa In Malta

Written by Mikkel Thorup | September 7, 2022

If you are planning to travel globally, Malta is an excellent place to be located, as it is near Europe, North Africa, and the Middle East. Malta is also relatively affordable, as the average annual salary is only €18,500/year. Since it is located in the Mediterranean Sea, just South of Italy, Malta offers residents many enjoyable outdoor activities. English is the official language, which makes it very easy for expats to live in Malta.

Malta offers a Digital Nomad Residence Permit, allowing individuals to enjoy the vibrant digital nomad lifestyle while residing in this Mediterranean gem. With its pleasant weather, stunning beaches, and picturesque landscapes, Malta provides an idyllic setting for remote workers and online entrepreneurs. The availability of diverse accommodation options, ranging from modern apartments to charming villas, ensures that digital nomads can find a comfortable place to call home during their stay.

 

Malta offers a range of business support services, such as coworking spaces and business incubators, which can enhance the professional environment for remote workers

Why Digital Nomads Should Consider Malta

Malta is an excellent destination for digital nomads for many reasons. Malta has one of the highest expat populations among all EU countries, which allows expats to have a multicultural experience by connecting with locals and expats. Most Western expats will find Malta slightly cheaper than their home country.

Life in Malta is filled with opportunities to explore its historical sites, lively cities, and quaint towns. The Maltese people are known for their warm hospitality, making it easy for digital nomads to connect with the local community and immerse themselves in Maltese culture. The island boasts a thriving restaurant scene, offering a variety of cuisines that cater to different tastes and preferences.

If you plan to stay long-term, Malta is also an excellent place to apply for residency. Capital gains outside Malta are not taxed, and you do not have to pay local taxes during the first year. Local taxes are at a progressive rate of 0-35%, but expat taxes are flat at 15%.

When it comes to tax documentation and self-employment, Malta has a straightforward process in place. Additionally, Malta offers a range of business support services, such as coworking spaces and business incubators, which can enhance the professional environment for remote workers.

The government has various programs designed to help entrepreneurs in the country, and there is also an abundance of networking activities through community events. Although Malta may be the best for long-term residents, it still has a lot to offer to digital nomads who only want to stay for one year and enjoy the experience.

A reliable internet connection is essential for digital nomads, and Malta provides excellent internet infrastructure across the country. Whether working from a coworking space, a café, or the comfort of their own accommodation, digital nomads can enjoy fast and stable internet access.

 

Related content: What Is A Digital Nomad Visa And How Can You Get One?

 

Life in Malta is filled with opportunities to explore its historical sites, lively cities and quaint towns

Malta Digital Nomad visa Overview

The Malta Nomad Residency Permit is suitable for remote employees and digital nomads who want to spend time living in Malta while working for companies outside Malta.

Malta already has many expats living in the country, and the government recognizes the value that remote employees and tourists add to the economy. Malta may be a great fit if you are looking for a comfortable place to live that allows you to connect with other similar-minded expats. The application process is simple, and the income requirements are similar to other regional countries.

The Malta digital nomad visa is valid for one year and can also be issued for 91-180 days if the applicant does not intend to stay for one year. As mentioned before, there is no reason to only stay for 180 days or less to avoid paying local taxes. You can bring family members to Malta with this visa, and you only need to pay a fee of €300 per person. The applicant also needs to earn an additional 20% of the €2,800/month requirement for each additional person.

 

Related article: The Basics Of How To Get A Second Passport Or A Second Residency.

 

WHO IS ELIGIBLE?

Applicants need to prove that they work remotely for a company outside Malta. Moreover, they also need to prove that they fall under one of three categories.

  1. Freelancer: An individual who is self-employed and provides services for a variety of companies outside of Malta. If you are self-employed and provide services to companies in Malta, you must apply for a different residence permit.
  2. Remote Employee: An individual who works for a company outside of Malta full-time.
  3. Owner/Partner: An individual who works for a company where he/she is an owner or partner of the business.

 

The Maltese people are known for their warm hospitality, making it easy for digital nomads to connect with the local community

What do you need to apply?

Once these requirements are met, there are other requirements to bear in mind:

  • The individual needs to make at least €2,800/month and should be able to provide supporting documentation to prove this.
  • The individual needs to have valid health insurance for the duration of their stay in Malta.
  • The applicant must provide an address in Malta, including a rental or a property they own.
  • The applicant needs to pass a verification background check.
  • The applicant must also provide a letter of intent along with the intended duration of stay.

The applicant will also need to provide other supporting documentation:

  • A passport copy
  • Passport photos
  • Tax documents
  • Certificate of incorporation (if you own a company)
  • Bank statements
  • Lease agreements
  • Health insurance policy
  • Signed CV
  • Health declaration statement. The health declaration statement states that you agree to cover any healthcare expenses not covered by your insurance policy.

The application fee is €300, and you should expect to hear back within 30 days. Applicants who intend to stay for 365 days or more will receive a residence permit, while applicants who only state they plan to stay for 180 days or less receive a national visa. You need to decide what option you want to choose before applying and include this information in your application.

Malta allows some individuals to receive income tax exemption during the first year, but you will need to pay taxes afterward if you stay longer. Eligible individuals must show they are paying income taxes back in their home country to qualify for the first year. If you want to avoid paying taxes in subsequent years, you must spend less than 180 days in Malta. The personal tax rate for foreign expats working in Malta is 15% on income up to €5 million.

 

Related content: The Benefits Of A Digital Nomad Visa In Greece

 

A reliable internet connection is essential for digital nomads, and Malta provides excellent internet infrastructure across the country

Takeaway

The Malta digital nomad visa is an excellent option for digital nomads, business owners, and remote employees who want to establish a long-term base in Malta. Any of these groups can spend one year in Malta without worrying about paying local taxes and decide if Malta is a long-term fit. This visa could be a bridge to eventually exploring the option of gaining permanent residency by investing in real estate. Malta is an excellent base for those interested in exploring nearby countries and attractions in Malta. Digital nomads should strongly consider this visa program, as they can avoid paying local taxes during the first year.

Malta's rich culture and history are visible throughout the island. From ancient temples to medieval fortifications, there are countless fascinating sites to explore. The crystal-clear waters surrounding the island also provide ample opportunities for outdoor activities such as swimming, diving, and sailing.

In summary, Malta's digital nomad visa program offers a perfect blend of a relaxed Mediterranean lifestyle and a conducive environment for remote work and online entrepreneurship. With its pleasant weather, beautiful beaches, and diverse cities, Malta provides an ideal setting for embracing the digital nomad lifestyle. The island's strong internet infrastructure, cultural richness, and welcoming community make it an attractive destination for those seeking a fulfilling work-life balance.

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