Expatriates and digital nomads may qualify for specific tax breaks in Malta based on their residency status and income sources. Eligibility criteria typically include:
- Residency Status: Individuals must meet the residency requirements set by the Maltese government, which may include a minimum number of days spent in Malta per year.
- Income Sources: Tax breaks may apply to income earned from foreign sources or remote work performed for non-Maltese companies.
Types of Tax Breaks:
Tax breaks available to expatriates and digital nomads in Malta may include:
- Non-Domiciled Resident Scheme: Expatriates who are not domiciled in Malta may benefit from a remittance-based tax system, where only income remitted to Malta is subject to tax.
- Highly Qualified Persons Rules: Certain expatriates working in specific industries, such as finance, gaming, and aviation, may qualify for reduced tax rates on employment income.
- Global Residence Programme: Digital nomads who establish their tax residence in Malta may benefit from a flat tax rate of 15% on foreign-source income remitted to Malta, subject to certain conditions.
- Individual Investor Programme (IIP): High-net-worth individuals relocating to Malta may obtain Maltese citizenship and benefit from advantageous tax treatment.
Application Process:
- Expatriates and digital nomads interested in claiming tax breaks must apply for the relevant residence or tax status through the Maltese authorities, such as the Inland Revenue Department or the Malta Residence and Visa Agency.
- The application process typically involves submitting documentation to prove eligibility, such as proof of residency, employment contracts, and financial statements.
- Deadlines for application submission and processing times may vary depending on the specific tax scheme or residency programme.
The tax breaks for expatriates and digital nomads in Malta are established through various legal instruments and government policies, including:
- Income Tax Act (Chapter 123 of the Laws of Malta): Specifies the tax treatment of residents and non-residents, including rules for non-domiciled residents and highly qualified persons.
- Global Residence Programme Regulations: Govern the requirements and benefits of the Global Residence Programme, aimed at attracting high-net-worth individuals and remote workers to Malta.
- Malta Residence and Visa Programme Regulations: Outline the eligibility criteria and application process for residency programmes targeted at expatriates and digital nomads.
These tax policies aim to attract skilled professionals, entrepreneurs, and remote workers to Malta, fostering economic growth, and contributing to the country's development as a hub for international talent and innovation.
Malta offers various tax breaks and residency programmes designed to attract expatriates and digital nomads, providing incentives for skilled professionals and remote workers to relocate to the country. By meeting the eligibility criteria and following the application process, individuals can benefit from advantageous tax treatment and enjoy the lifestyle opportunities offered by Malta.
