Ever since the Covid pandemic, many have had to experience working remotely in some form or another. Some dreaded the experience, whilst others flourished under this new sense of liberty. In fact, since 2019 there has been a significant increase in the amount of people identifying as digital nomads.
What are Digital Nomads?
Digital nomads are people who are not tied down to any specific location but rather have the ability to travel anywhere they want and make use of technology and other communication tools in order to work remotely. This lifestyle caters for people who value independence and excitement while also possessing strong innate values of responsibility. The question which digital nomads should ask however is: where should I stay in order to make the most of the situation?
Why Choose Malta?
Malta has been a go-to for many digital nomads as of late and this shouldn’t come as a surprise given what Malta has to offer.
First of all, despite having their own language, English is also an official language of Malta. Most of the locals (especially the younger generation) are fluent in English and essentially all of the signs, services, restaurant menus, etc. are all available in English, thus making communication as easy as can be.
While in Malta, you can also immerse yourself in the culture and lifestyle of the Maltese Nationals. You can experience authentic Maltese cuisine, traditional feasts and celebrations, and of course Malta’s well renowned beaches.
For others who are more focused on finding a place which can easily facilitate their remote working, than Malta has you covered. Malta has excellent Wi-Fi spread, internet speed and 5G mobile internet service throughout the entire country, thus allowing you to work efficiently wherever you go.
Malta’s geographical location is also great for those who require frequent visits abroad as it is not only close to other European countries but also to North Africa and the Middle East.
Moreover, if you want to stay both physically as well as economically safe, then look no further as Malta’s General Hospital is not only trustworthy but also free of charge.
Tax Benefits for Digital Nomads in Malta
Many choose to relocate to Malta in order to enjoy the vast tax advantages offered in the country. First of all, Malta has one of the lowest VAT rates in all of Europe, coming in at eighteen percent (18%), which is remarkably lower than the EU average of twenty-three percent (23%).
Individuals in Malta are also eligible for tax reductions. The amount reduced and the income tax rate all depend on the amount of income as well as the marital status. Married individuals with an annual income of ten-thousand, five-hundred euro (€10,500) or less will be exempt from income tax, whilst others with a larger salary will have to pay income tax but would instead benefit from tax deductions. Moreover, Malta also offers great tax advantages to companies working in Malta as a majority of the taxes are refunded.
One of the best tax benefits available in Malta however, is the one offered to digital nomads. Since digital nomads are employed in another country, they will be completely exempt from paying taxes in Malta if they are in possession of the Malta Nomad Residence Permit.
Residency Requirements for Digital Nomads in Malta
In order to qualify for the Malta Nomad Residence Permit you need to be a third-country national with a minimum gross monthly income of two-thousand, seven-hundred euro (€2,700). The gross annual income must therefore reach the minimum of thirty-two-thousand, four-hundred euro (€32,400) and the applicant must fall within one of three categories.
Applicants must also be in possession of a valid travel document as well as a valid health insurance with a minimum limit of thirty-thousand euro (€30,000). The applicant must also purchase or rent property in Malta while also passing the necessary background check. It must be noted however that Nationals originating from certain countries such as North Korea, Sudan, Yemen and Russia amongst others, will not be eligible to apply.
The Digital Nomad Programme in Malta
If the above criteria are satisfied, then third-country nationals would have the ability to apply for the for the Malta Nomad Residence Permit. By doing so, one would be able to reside freely within Malta while still being employed elsewhere. During such stay, tax will still be paid in the country of employment, thus not having to pay any tax here in Malta.
The permit is usually issued for one (1) year and can be renewed if the same criteria are still met. This can be extended for a total period of three (3) years. Apart from that, one would also need to prove that they have resided in Malta for at least five (5) months during that one-year period. For others looking for a shorter stay, there is also the possibility to apply for a six (6) month visa, with the possibility of renewal if the applicant has resided for three (3) months in that six-month period.
How to apply for the Digital Nomad Programme
The applicant must submit an application together with the required documents to Residence Malta Agency. This will come at a fee of three-hundred euro (€300). Applicants can also bring family members along with them, provided that they also pay an additional three-hundred euro (€300) fee for every family member. The applicant shall also present a letter stating their intention for the stay along with the intended duration of the stay.
Upon submission of the application, local authorities will carry out background checks for safety and verification purposes. If the application is approved, the recipient will be notified and within thirty (30) days of such approval, the applicant will be required to submit proof of accommodation in Malta and a valid health insurance policy. Once this has been finalised, the applicant would receive a letter of final approval.
Once such letter has been received, the applicant shall come to Malta in order to take some photos and biometrics for identification purposes. Following that, a residence permit will be issued and this usually takes somewhere between two (2) to three (3) weeks.
The Digital Nomad Community in Malta
The digital nomad community in Malta is constantly growing. In fact, it is one of the most highly recommended programmes on the Global Nomad Guide. Some of the best selling points are of course the language, the sunny weather and the superb internet speeds. The internet speed averages at around eighty-six (86) Mbps, making it some of the best in the world.
There are also a number of great locations to work from. Many choose to work in one of the many digital nomad friendly cafes available throughout the island which have high internet speeds together with a tranquil atmosphere. Others prefer a more professional approach, thus opting to work in one of the many co-working spaces available. These co-working spaces are a great way to stay focused will also meeting other digital nomads. Most of these co-working spaces are available to rent either for a fixed rate per day or for a discounted price per month.
Despite having a rich culture of their own, Malta is also a host for a variety of different cultures, thus making non-EU nationals feel right at home. In fact, the country is home to over sixty-seven-thousand (67,000) expat residents, without taking into account the large number of digital nomads residing temporarily.
Conclusion
To summarise: Malta is a welcoming environment with great weather, impeccable internet connection, exquisite Mediterranean cuisine and absolutely no problems when it comes to communicating with the locals. It therefore comes as no surprise that many digital nomads are choosing Malta as their preferred destination. With Malta’s persistent efforts to stay up to date with all the latest innovations, it can only serve to further the digital nomad community in the future.
