Myoelectric prostheses help amputees to regain independence and a higher quality of life. These prostheses are controlled by state-of-the-art electromyography sensors, which use a conductive connection to the skin and are therefore sensitive to sweat. They are applied with some pressure to ensure a conductive connection, which may result in pressure marks and can be problematic for patients with circulatory disorders, who constitute a major group of amputees. Here, we present ultra-low-power digital signal processing algorithms for an insulated EMG sensor which couples the EMG signal capacitively. These sensors require neither conductive connection to the skin nor electrolytic paste or skin preparation. Capacitive sensors allow straightforward application. However, they make a sophisticated signal amplification and noise suppression necessary. A low-cost sensor has been developed for real-time myoelectric prostheses control. The major hurdles in measuring the EMG are movement artifacts and external noise. We designed various digital filters to attenuate this noise. Optimal system setup and filter parameters for the trade-off between attenuation of this noise and sufficient EMG signal power for high signal quality were investigated. Additionally, an algorithm for movement artifact suppression, enabling robust application in real-world environments, is presented. The algorithms, which require minimal calculation resources and memory, are implemented on an ultra-low-power microcontroller.