A creditor’s obligation to assess the creditworthiness of a consumer
by Ganado Advocates
23rd April 2024
by Griffiths + Associates Ltd
20th December 2023
The Nomad Residence Permit enables third country nationals* who can prove that they are working remotely from Malta, using telecommunications, to legally reside and work from Malta, when the entities or customers to whom they are providing services have no presence in Malta.
On December 7th 2023, the Ministry for Finance and Employment has issued Updated Nomad Residence Permits Rules, LN 277 of 2023, coming into effect on 1st January 2024.
The most significant change concerns the income tax for Digital Nomads, rule 3 (sub-rules 1-3).
· Before:
Nomad Residence Permit holders were subject to income tax at progressive rates, with the top rate being of 35%, as residents.
And at the same time, Digital Nomads could mitigate the tax burden in Malta using the double taxation relief as per Malta’s tax treaties (was available only for Digital Nomads who were being tax residents in one of the contracting states of the tax treaty**). Consequently, those Digital Nomads were at times not be subject to personal income tax in Malta since their employment was already were taxed at origin, the tax due was considered settled through double taxation relief provisions and the permit was a temporary basis of stay.
Now:
Nomad Residence Permit holders will be subject to income tax at a rate of 10% on income derived from “authorised work”. The earliest this low-income tax rate will apply is as from the basis tax year commencing 1st January 2024. This is substantial reduction from the progressive rate of taxation.
Digital Nomads are still able to benefit from the double taxation relief as per Malta’s tax treaties, and in such case, they must provide proof of paying taxes outside Malta at a rate of at least 10% on such income, and therefore that would not have to pay the 10% income tax in Malta.
· Authorised work is defined as work with a non-resident employer who does not carry on business in Malta through a fixed place of business, or services performed on a self-employed basis for clients who do not reside in Malta and who do not carry on a business in Malta through a fixed place of business.
· Regarding any other income derived not from the authorised work, such as dividends, interest and so on, it will be subject to the general taxation rules as per Malta’s Income Tax Acts.
· The Rules also prescribe reporting obligations. Digital Nomads have the obligation to register for income tax purposes – report the income received, file an annual income tax return, and pay tax as per above.
· A permit granted for the Digital Nomad to reside in Malta may be extended, and from an income tax perspective may be renewable for a further two-year period.
* Non-EU citizens. Nationals from the currently ineligible countries of (or have close ties with) Afghanistan, North Korea, Iran, Democratic Republic of Congo, Somalia, South Sudan, Sudan, Syria, Yemen and Venezuela are not eligible. Additionally, applications from the Russian Federation and the Republic of Belarus are currently not eligible. The list of ineligible countries may be revised from time to time by the Agency, at its discretion.
** List countries Malta has signed double tax treaties can be found here https://cfr.gov.mt/en/inlandrevenue/itu/Pages/Double-Taxation-Conventions.aspx
How can Griffiths + Associates assist?
· Providing tax and legal advice;
· Assisting the individual Nomads to obtain their respective permit to reside in Malta, and to be up-to-date with all such administrative compliance requirements;
· Advising the foreign entity of any Maltese corporate tax considerations or payroll obligations and assist with complying with such obligations;
· Assisting with work permit applications for Employers; and
· Advising an individual of any Maltese income tax and social security considerations as well as assist with complying with such obligations.
by Ganado Advocates
23rd April 2024
by Ganado Advocates
5th April 2024
by CSB Group
5th April 2024
by Bank of Valletta
21st March 2024
by Bank of Valletta
18th March 2024
by Ganado Advocates
4th March 2024
by Ganado Advocates
23rd February 2024
by HSBC Bank Malta p.l.c.
19th February 2024
by Bank of Valletta
29th January 2024
by Bank of Valletta
17th January 2024
by CSB Group
12th January 2024
by Ganado Advocates
3rd January 2024
by Ganado Advocates
3rd January 2024
by Ganado Advocates
3rd January 2024
by Bank of Valletta
28th November 2023
by Bank of Valletta
23rd November 2023
by Bank of Valletta
3rd November 2023
by Ganado Advocates
1st November 2023
by Ganado Advocates
1st November 2023
by Ganado Advocates
1st November 2023
by Griffiths + Associates Ltd
31st October 2023
by Ganado Advocates
16th October 2023
by Bank of Valletta
29th September 2023
by Bank of Valletta
31st August 2023
by Bank of Valletta
28th August 2023
by Ganado Advocates
16th August 2023
by Ganado Advocates
16th August 2023
by Ganado Advocates
11th August 2023
by APS Bank plc
31st July 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
28th June 2023
by Ganado Advocates
26th May 2023
by Bank of Valletta
7th May 2023
by Infocredit Group Limited
3rd May 2023
by Bank of Valletta
14th April 2023
by Ganado Advocates
10th April 2023
by CSB Group
14th March 2023
by Ganado Advocates
24th February 2023
by CSB Group
21st February 2023
by Griffiths + Associates Ltd
20th February 2023
by FinanceMalta
14th February 2023
by Bank of Valletta
31st January 2023
by CSB Group
19th January 2023
by Ganado Advocates
13th January 2023
by Ganado Advocates
13th January 2023
by Bank of Valletta
27th December 2022
by Bank of Valletta
21st November 2022
by BNF Bank plc
18th November 2022
by Bank of Valletta
3rd November 2022
by FinanceMalta
28th October 2022
by BNF Bank plc
6th October 2022
by Bank of Valletta
16th September 2022
by Bank of Valletta
2nd September 2022
by CSB Group
31st August 2022
by Bank of Valletta
11th August 2022
by BNF Bank plc
10th August 2022
by Griffiths + Associates Ltd
29th July 2022
by Griffiths + Associates Ltd
25th July 2022
by BNF Bank plc
14th July 2022
by Bank of Valletta
3rd June 2022
by Infocredit Group Limited
19th May 2022
by The Malta Institute of Accountants
13th May 2022
by Griffiths + Associates Ltd
9th May 2022
by Griffiths + Associates Ltd
3rd May 2022
by Infocredit Group Limited
28th April 2022
by Infocredit Group Limited
8th April 2022
by Infocredit Group Limited
8th April 2022
by Ganado Advocates
24th February 2022
by Bank of Valletta
16th February 2022
by BNF Bank plc
12th January 2022
by BNF Bank plc
3rd December 2021
by Western Union Business Solutions
1st November 2021
by FinanceMalta
8th July 2021
by FinanceMalta
8th July 2021
by FinanceMalta
8th July 2021
by Bank of Valletta
28th June 2021
by FinanceMalta
18th June 2021
by Bank of Valletta
1st June 2021
by Bank of Valletta
26th May 2021
by Bank of Valletta
25th May 2021
by Bank of Valletta
18th May 2021
by Bank of Valletta
17th May 2021
by Bank of Valletta
7th May 2021
by FinanceMalta
29th April 2021
by Bank of Valletta
13th April 2021
by Bank of Valletta
18th February 2021
by Western Union Business Solutions
5th February 2021
by FinanceMalta
14th January 2021
by Bank of Valletta
4th January 2021
by Bank of Valletta
21st December 2020
by Bank of Valletta
18th December 2020
by Bank of Valletta
18th December 2020
by Bank of Valletta
30th November 2020
by Bank of Valletta
29th September 2020
by Infocredit Group Limited
23rd September 2020
by Bank of Valletta
14th September 2020
by Bank of Valletta
14th September 2020
by Bank of Valletta
2nd September 2020
by Bank of Valletta
19th August 2020
by APS Bank plc
3rd August 2020
by Bank of Valletta
31st July 2020
by Bank of Valletta
31st July 2020
by Ganado Advocates
17th July 2020
by FinanceMalta
10th June 2020