Expat Living in Malta

Malta is a fantastic place to relocate. Freelancers, retirees, crypto managers, digital nomads, and entrepreneurs choose Malta as their spot for its beauty, its beneficial tax system, and the opportunities it offers.

Its calm ambiance is perfect for expats looking to run away from the non-stop life of big cities, but still want to enjoy first-level services in a modern country. Malta is a country open for foreigners, with a welcoming local population, a vibrant cultural mix, an astonishing past, and its eyes well-set into the future.

Why did the Knights Hospitaller chose Malta as its base and hometown? We are sure it was because it was the closest they could feel to heaven on earth. Add that the tax optimization possibilities, amazing investment vehicles to protect your assets, and a privileged location that will get you to most European, North African, and Middle Eastern capitals in a couple of hours by plane.

If you want to relocate to start a new business or wish to enjoy your retirement savings freely, Malta should be at the top of your list.

One major benefit of the island is that English is one of the two official languages, and 88 % of the population speak it. All government services are available in English, which makes many processes easier. Moreover, Malta is an incredibly multilingual country. More than two-thirds of the population speaks Italian, and more than 15 % speak French.

Malta is also a gorgeous country. It has an incredible climate, the average day temperature is 23 ºC, and in the summer is around º30. The country enjoys more than 3000 hours of sunshine per year. In comparison, London has 1600 per year. Likewise, the country enjoys a privileged geographical location. You are three hours or less by air away from Barcelona, Rome, Berlin, Athens, Jerusalem, Paris, and Cairo. Likewise, there’s a regular ferry service between Malta and Sicily, which takes around one and a half hours and, especially in the summer, is available many times per day.

Furthermore, Malta is generally an affordable country. However, some products may be somewhat expensive. As it is an island, it relies heavily on imported goods. Also, as the expat community grows, and the economic boom continues, some areas of the country are increasingly expensive.

However, a flat for two can cost less than €700 per month if you don’t go for anything too fancy. That’s way less than pretty much any Western European capital. A brand new trendy complex can cost €1,500 per month, and almost all apartments in Malta come entirely furnished. Again, not in your wildest dreams, you’ll find those prices in London or Paris.

The utility bill is somewhat expensive, around €150 and €200, but you don’t pay property taxes in Malta, which reduces the total costs.

The Maltese government has improved the public transportation system in the last few years, and prices have lowered. Still, buses tend to get incredibly crowded during rush hours, and if you own a car, traffic is also heavy because Valetta tends to have narrow streets and parking is difficult. Monthly bus passes cost €40. That’s about the same than most European large cities.

Malta has an excellent public health system based on the British NHS system, with the small difference that the Maltese system isn’t in a total collapse like the British one. However, not all residence permits include public healthcare, and, still, many expats prefer private insurances. They go from €250 to €1200 roughly, depending on your preferences and needs. The general cost of a month of groceries, if you go for local products, is around €200 per month.

Aside from the low rent prices, the rest seems to be around the average in Europe, maybe a bit lower. However, you must consider an excellent benefit: tax rates.

You can make amazing savings in your tax rates, thanks to Malta’s tax system. We explain this in-depth in the tax system section. However, Malta is a top destination for retirees as you can live comfortably with as little as €2,500 per month, Malta allows carrying over your healthcare coverage to Malta under certain conditions.

Also, Malta offers a retirement program for EEA/Swiss citizens, which provides them a 15 % flat tax rate on their foreign-sourced income that is remitted to a Maltese bank account. What if your income is not sent to a Maltese account? It means it’s completely tax-free. Likewise, all foreign-sourced capital gains are tax-free. Consider that Malta has double tax treaties with every EEA country, and that means double taxation won’t be an issue, and you’ll keep a large portion of your retirement savings. That’s a good reason why many Europeans are choosing to retire in Malta. The main requirement is that they must acquire a residential property of at least €275k or rent a property of at least €9.6k per year.