The government of Malta launched a new temporary residency scheme for digital nomads who want to move to Malta and work remotely. The programme offers a six-month visa and an option of obtaining a one-year ‘Nomad Residence Permit’, costs €300 and can be renewed annually. To qualify, applicants must prove they have a contract to work remotely by a company based overseas. Alternatively, they have to show that they run their own business or offer freelance service to clientele based abroad.
It is estimated that a digital nomad spends roughly €30,000 a year in Malta, which is close to what tourists spent in 2019. One digital nomad spends in a year roughly what 260 tourists would spend in a day. COVID-19 measures have introduced the world to remote working and islands including Bermuda and Barbados have already created similar programmes to invite workers to settle abroad and work remotely. Malta’s scheme which comes into effect from 02.06.2021. It targets people who are able to earn a living remotely and choose to travel frequently.
A community of roughly 1,000 digital nomads already living and working from Malta. Now, the government is hoping to attract between 1,000 to 1,200 applicants a year. The majority of local nomads were European citizens. However, with the boom in remote working due to the pandemic, they expand the opportunity to third- country nationals. Trends show that nomadic professionals are looking for safe places. Even in terms of the healthcare that is available to them. Therefore Malta is an ideal safe and secure destination to live and work in.
Eligibility Criteria
To be eligible one must:
- be 18 years old.
- be a Third Country National (TNC) – excluding EU, EEA and Switzerland and nationals from currently ineligible countries of (or have close ties with) Afghanistan, North Korea, Iran, Democratic Republic of Congo, Somalia, South Sudan, Syria, Yemen, and Venezuela are not eligible. Additionally, applications from the Russian Federation and the Republic of Belarus are currently ineligible countries may be revised from time to time by the Agency, at its discretion.
- prove they can work remotely, using telecoms.
- prove they fall under any one of the following 3 categories:
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- Employed – with an employer registered in a foreign country and have a contract of work;
- Self-employed – conduct business activities for a company registered in a foreign country / operating through a foreign company of which the applicant is a partner/shareholder;
- Freelance – offers freelance or consulting services, mostly to clients whose permanent establishments are in a foreign country. The applicant also has to have a contract.
Persons contracted by a foreign company and giving services to the company’s Maltese subsidiary, and persons who directly or indirectly will be providing services to Malta-based companies or individuals are ineligible for the Nomad Residence Permit. A Nomad Residence Permit holder (including also their dependents) can not offer their services or be engaged in any economic activity with employers or companies registered based/registered in Malta. They are also not entitled to social benefits or pension in Malta.
Income threshold
Moreover, since 1st April 2024, an applicant must reach a gross yearly income threshold of EUR 42,000. They have to go through a due diligence process that requires them to have “a good reputation and police conduct”.
Accomodation
They must have a valid passport and proof that they are living in a residential property in Malta, such as a lease agreement. There is no minimum rent but the contract must be valid for the whole period of the permit. No proof of accommodation is needed when submitting the application, it is enough to provide proof after the Letter of Approval in Principle is issued. Once the chosen accommodation and its proof are deemed to satisfy the programme requirements, a Letter of Final Approval is issued to the applicant. Temporary accommodation is a short-term place of stay up to a maximum of one month which can be submitted upon issuance of the Letter of Approval in Principle, On securing such temporary accommodation, a Letter of Final Approval will be issued, however, upon arrival in Malta, one must opt to secure a 1-year lease for a card to be issued. Examples of temporary accommodation include hotels and Airbnb. A residence card can not be issued on a temporary address or PO Box address. One can stay with someone who has a purchased property. One will need to submit a signed copy of the purchase agreement clearly stating the owners’ name and a declaration from the owned(s).
Entry Visa
Some nationalities require an Entry Visa.
Following the receipt of the Letter of Final Approval, if the approved
applicant requires an entry visa they will be contacted by the Central Visa Unit at ldentita (formerly known as Identity Malta Agency) in order to receive information about the visa application process.
Dependents
Family members can be included (spouse and their dependents), but can not be added after effecting payment or obtaining approval. Dependents may be added when the main applicant is applying for renewal. (Newborns are the only exceptions.)
After a rejected application, a new one can be submitted 12 months from the date of the Rejection Letter Letter issued by the Residency Malta Agency. The grant of a permit is always discretionary and Residency Malta has no obligation to grant a permit. The Agency’s decision is final and an applicant cannot appeal the decision.
Duration & Extension
The Permit may be renewed three times, for a total stay of a maximum of four 4 years at the discretion of Residency Malta Agency, subject to the applicant still being able to satisfy the programme criteria. Previous stays on the Nomad Residence Perirnit will be taken into account.
The Nomad Residence Permit does not provide an automatic extension to one’s visa. If the allowed period of stay is set to expire, prior to full approval for the Nomad Residence Permit, they are required to exit the Schegnen area in line with the visa obligations.
Other conditions
All applicants aged 18 and over at the time of the application submission must provide Residency Malta with an original police conduct certificate as issued by the competent national/federal authorities in the country of origin.
Since digital nomads typically pay their taxes in a different jurisdiction, applicants will have to provide health insurance to ensure their access to health services. A health insurance policy must state that it provides cover in Malta.
Nomad Residence Permit holders can submit an application for the MPRP through one of the licensed agents listed on the Residency Malta website, and if approved they would need to renounce the Nomad Residence Permit. It’s not possible to hold two statuses at the same time.
Benefits
As long as the Nomad Residence Permit is valid, the holder is free to travel within the Schengen Area for a maximum of 90 days in a rolling 180 day period.
Read more about the advantages of working remotely in Malta.
