Remote work is the most popular now. Digital nomads are looking for the best destinations in the world to establish a home for themselves in a new country for a year or so. Many beautiful countries worldwide have opened their doors to remote workers who can boost their economies.
One of the first countries to open its door to digital nomads is Malta, an archipelago that houses the most stunning beaches worldwide.
Due to the ease of applying for a Malta Nomad Residence Permit, Malta is one of the most popular destinations. However, its tax regime makes it even more attractive to digital nomads.
If you wish to save valuable money on taxes, a Malta digital nomad visa can help you.
Read on and learn how!
What is the Malta Nomad Residence Permit?
Digital nomad visa Malta is designed for non-EU nationals who want to work remotely. The visa duration is one year, which can be renewed two times, giving you three years in Malta.
Who Can Apply?
One must meet multiple criteria to be eligible for a Malta digital nomad visa. One of the prominent ones is the income requirement. One must have an income of €3500/month or €42000/ year to apply for the visa. Also, this income should be derived by working for an employer established in a third-country or a non-resident of Malta.
Malta Tax Benefits for Digital Nomads
If you meet the eligibility criteria mentioned above, read on and learn how you can enjoy tax savings in Malta:
Tax Residency Rules in Malta
Malta has changed its taxation rules in the recent past. Whether these rules apply to you is a matter worth exploring.
Under Malta's updated tax residency rule, one is considered a tax resident if they spend more than 183 days in Malta. As a digital nomad, your visa period is one year, which makes you a tax resident. However, the Malta Nomad Residence Permit offers you a distinct advantage here. Being a permit holder, you are not a tax resident, as your income is sourced outside Malta.
However, your income shall be taxable if you don't fulfil the employment condition and work for a Maltese resident.
No Local Income Tax
Malta digital nomad visa holders are not subjected to local Maltese tax if their income is not remitted to Malta. So, you can continue earning from multiple sources outside of Malta and you shall not need to pay a single penny towards local tax.
Avoidance of Double Taxation
Over 80 countries worldwide have a double taxation agreement with Malta, meaning you will only be taxed in one country. A lack of a tax treaty means one might have to pay double taxes in both countries. It adds more appeal to Malta digital nomad visa.
Advantages of the Malta Nomad Residence Permit Beyond Taxes
If you put aside the financial benefits of a Malta Nomad Residence Permit, there are multiple other advantages which you should consider:
High Quality of Life
Malta offers an exceptional quality of life, with a warm Mediterranean climate, rich cultural heritage, and a vibrant expat community. The proximity to other European countries is quite appealing for a travel enthusiast.
Efficient Internet Infrastructure
Digital nomads require a reliable internet connection to facilitate remote working. Malta has a robust digital infrastructure to ensure that digital nomads have access to a fast and reliable internet.
Safety and Security
As a digital nomad, you must ensure your safety when you step into a foreign land. However, if you are choosing Malta, you need not have qualms. Malta is one of the safest countries in Europe where you and your family are safe. The low crime rate and stable political climate make it a conducive place for living and working.
An Expanding Digital Nomad Community
Malta has a thriving digital nomad community. People worldwide are visiting Malta, making it a perfect hub for digital nomads who want to expand their network. There are numerous freelancers, entrepreneurs, and digital nomads whom you can connect with. It has created a supportive environment for remote workers and presented ample networking opportunities to expand their professional horizons.
Affordable Cost of Living
As a digital nomad, you must choose an affordable country, and thus, you must choose Malta. Malta is inexpensive than most European countries, offering affordable accommodation, transportation, and food. Its public transport system is quite robust. There are multiple living options including Coliving facilities, which offer luxury at affordable prices.
You can maintain a high standard of living in Malta without digging a hole in your pocket.
Conclusion
Malta digital nomad visa is the right choice to save money, especially on taxes. The blog has also discussed other non-financial aspects as well that you must consider. The crux is that Malta is the right destination for any digital nomad.
