Malta targets remote workers with new residency permit initiative

The Maltese government has launched a new initiative allowing so-called “digital nomads” to apply for temporary remote residency on the Mediterranean island for up to one year. Known as the Nomad Residency Permit (NRP), applicants must prove they can work remotely and independently of any physical location. Prospective applicants should either work for an employer registered abroad, conduct business activity for a company registered abroad, and of which they are partners or shareholders. In addition, those offering freelance or consulting services to clients whose permanent establishments are in a foreign country can also apply for an NRP. The programme offers a six-month visa with the option of obtaining a one-year NRP and costs €300 (£257.88). The new initiative has been developed by Residency Malta Agency, in collaboration with Identity Malta Agency, and aims to attract foreign consumption in Malta. It targets individuals from other EU nations as well as so-called third country nationals i.e. a citizen of a state that is not a member of the EU nor a citizen of Iceland, Lichtenstein, Norway or Switzerland. “This initiative will see Malta jump on the bandwagon of increased demand for remote working globally, as the pandemic shifted goalposts and new trends are being set,” Malta’s Parliamentary Secretary for Citizenship and Communities Alex Muscat said. “Individuals who can work remotely using technology and entrepreneurs with a flair for travelling and discovering new countries and cultures are being made welcome in Malta,” Muscat added. It is understood that all applicants will be put through a due diligence process which requires them to have a good reputation and no prior criminal offences. The applicant must have a valid passport and provide proof they live in a residential property in Malta. As taxpayers in other jurisdictions, these individuals will be required to provide their own health insurance, with any work carried out by them in respect of local companies subject to normal local taxation rates. According to government estimates provided at a press conference announcing the scheme, there are 1,000 of these so-called digital nomads in Malta, with the initiative aiming to attract between 1,000 and 1,200 more annually. Each of these individuals spends approximately €30,000 annually, roughly equivalent to what 260 tourists would spend in a day. Speaking about the new service, Identity Malta Agency CEO Anton Sevasta said: “The new visa service to nomad applicants is part of the new Premium Visa Service which Identity Malta Agency will be launching in the coming weeks. “The service is a door-to-door option intended for highly skilled professionals in order to streamline the process without compromising the due diligence process,” he added. Malta’s gaming industry could be among one of the chief beneficiaries of this new scheme, with many island-based operators already utilising remote working because of the Covid-19 pandemic. The online gambling sector generates €700m annually, roughly 12% of the island’s GDP, employing more than 9,000 individuals. It is home to operators including LeoVegas, bet365, Kindred Group and Betsson.