On 16 January 2026, the Malta Tax & Customs Administration (the “MTCA”) published Guidelines (the “Guidelines”) in relation to The Nomad Residence Permits (Income Tax) Rules, S.L. 123.210 (the “Rules”).
Eligibility
The Rules, effective from 1 January 2024, are applicable to non‑EU/EEA/Swiss nationals, who are the holders of a Nomad Residence Permit, issued by Residency Malta Agency and who meet one of the following criteria:
- Remote employees performing their employment activities for an employer not resident in Malta and not operating through a fixed place of business in Malta; or
- Self‑employed individuals / freelancers providing remote services to clients not resident in Malta and without a fixed place of business in Malta.
Income Tax Implications
Eligible applicants may benefit from a flat income tax rate of 10% on income derived from authorised work, as defined, instead of the standard progressive income tax rates which go up to 35%.
Nomad Residence Permit holders may benefit from a 12‑month income tax exemption on income from authorised work, starting from the later of:
- the date on which the Nomad Residence Permit is issued, or
- 1 January 2024.
The Guidelines confirm that, on issue of a Nomad Residence Permit, the holder will be automatically registered for income tax purposes in Malta. Nomad Residence Permit holders must adhere to their tax compliance obligations in Malta, including the submission an income tax return, timely payment of any tax due and inform the relevant authorities of any change related to their employment.
The MTCA also clarified that Nomad Residence Permit holders should remain outside the scope of the Final Settlement System (the “FSS”). Accordingly, foreign employers of Nomad Residence Permit holders should, in principle, have no payroll obligations in Malta, provided that the employer does not become tax resident in Malta and/or do not operate through a fixed place of business in Malta.
Accessing the Guidelines
The Guidelines can be accessed here.
This article has been prepared by the law firm’s Tax Team. For more information concerning any personal or corporate tax matter, please do not hesitate to contact the team on tax@fenechlaw.com
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