The technological investment and the change in mindset brought about by the pandemic, accelerated the shift from the traditional office towards remote working, enabling certain individuals to continue performing their employment / self-employment activities from anywhere in the world.
The introduction of the Nomad Residence Permit enables third country nationals who can prove that they are working remotely from Malta, using telecommunications, to legally reside and work from Malta, even when the entities or customers to whom they are providing services have no presence in Malta.
Who is eligible to apply?
A third country national working remotely from Malta and falling under any of the following three categories may apply for such permit:
an employee of a foreign registered employer regulated through a work contact; or
a partner/shareholder of a foreign registered company who performs activities for the said company; or
a freelancer or consultant who provides services to clients who are established outside of Malta and has a contract in place with such clients.
The applicant should also:
hold valid travel documentation;
hold a health insurance policy covering all risks in Malta;
hold a valid property rental or purchase agreement in Malta;
pass a background verification check; and
adhere to the standard procedures relating to visas and other permits.
In addition, the applicant should earn a monthly income of at least €3,500, gross of tax, in order to be eligible for this permit.
Subject to the approval of the Residency Malta Agency, dependents of the main applicant, including the beneficiary’s spouse and minor children (or adult children who are dependent on the main applicant due to medical or economic reasons) may also be entitled to reside in Malta under such permit, subject to the satisfaction of certain conditions.
- Period of validity of permit
- Application fee
- Timeline
- Tax considerations
Period of validity of permit
The permit will be issued for one year, and at the discretion of the Residency Malta Agency can be renewed on an annual basis for a total stay of a maximum 4 years.
Application fee
A non-refundable application fee of €300 for each applicant and each family member is applicable upon the application and every renewal. The application fee excludes any visa related fees.
Timeline
The application should be processed within 30 days of the submission of the full and complete application, together with all supporting documentation.
Tax considerations
Maltese income tax and social security considerations may arise for both the applicant and the foreign entity. These must be looked into on a case-by-case basis.
How can we assist?
Assist in identifying if the Nomad Residence Permit is the required permit, depending on the particular circumstances of the individual;
Assist with the preparation of the required application forms and supporting documentation in applying for the Nomad Residence Permit in respect of the applicant and dependents, for both the original application and the renewal process and monitoring the status of such application;
Assist with the preparation of the Schengen / premium visa application, if applicable;
Assist with the legal overview of the purchase agreement when investing in a property in Malta.
Assist with setting up meetings with real estate agents and local insurance companies;
Assisting with work and residence permit applications for dependents of the applicant;
Advise the foreign entity of any Maltese corporate tax considerations or payroll obligations and assist with complying with such obligations;
Advise the applicant of any Maltese income tax and social security considerations as well as assist with complying with such obligations; and
Providing other ad-hoc immigration, tax and legal advice as may be required.
With the help of our immigration and tax specialists, PwC Malta is in a position to help with the application process, including assistance with obtaining the necessary visas to enter the country, the Maltese tax and social security considerations applicable to the applicant as well as the foreign entity, offering a full range of services.
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