Living in Malta: Discover the Charm of the Mediterranean Island

Last Updated on 27 December 2024

Ever dreamed of living on a stunning island with loads of digital entrepreneurs, soaking up the Mediterranean sun, and leading a chill life?

Well, look no further, as we introduce you to Malta, a European gem that offers an excellent quality of life, a thriving business environment, and a welcoming community.

In this comprehensive guide, we’ll take you through the entire process of expatriation to Malta and help you discover why this tiny island is an ideal destination for many. So, sit back, relax, and let’s embark on this exciting journey together!

Living in malta: The Maltese Charm

Geography and Climate

Malta is an archipelago in the central Mediterranean, comprising three main islands: Malta, Gozo, and Comino. Its strategic location has made it a cultural melting pot, with influences from various civilizations throughout history. The climate is typically Mediterranean, with hot, dry summers and mild, wet winters.

Population and Language

The population of Malta is around 500,000, making it one of the smallest countries in the European Union. The official languages are Maltese and English, so communication is not an issue for most expats. Moreover, many locals speak Italian, French, and German.

Economy and Currency

Malta’s economy is diverse and resilient, with key sectors including tourism, finance, gaming, and maritime services. The country is part of the Eurozone, and its currency is the Euro (€).

Immigration and Residence

Visa Requirements

EU/EEA/Swiss citizens do not require a visa to enter Malta. They can stay and work indefinitely, provided they register their residence after three months.

Non-EU/EEA citizens may need a visa, depending on their nationality and purpose of stay. They can apply for work permits, residence permits, or specific schemes targeting investors and retirees.

The Malta Individual Investor Programme (MIIP)

The MIIP is a citizenship-by-investment program that allows affluent individuals to acquire Maltese citizenship by making a significant contribution to the country’s economy. Applicants must meet specific requirements, including investment in government bonds, property purchase or rental, and a philanthropic donation.

Taxes in Malta

Malta is a tax-friendly destination for those who want to live or set up a business there. Here are the highlights of Malta’s tax system:

Residency criteria:

A person is considered a tax resident in Malta if they spend more than 183 days in the country during a calendar year.

Domiciled or non-domiciled resident:

A person is considered domiciled in Malta if they were born in Malta or choose to establish their domicile in Malta by severing ties with their country of origin.
If you are a resident in Malta and do not fall under the two categories mentioned above, you can benefit from the non-domiciled resident tax regime.

Tax rates for domiciled and non-domiciled residents:

Domiciled residents are subject to tax rates ranging from 0% to 35% based on their income.
Non-domiciled residents are taxed only on Maltese source income and foreign source income remitted to Malta, at a rate of 15%.
Non-domiciled residents are subject to a minimum tax of €5,000, except if their foreign income is below €35,000.

Corporate tax rates:

The corporate tax rate in Malta is initially 35%, but this can be reduced to an effective rate between 0% and 10% by claiming a refund on distributed profits.

Administrative formalities:

EU citizens do not need a visa to enter and stay in Malta for the long term.
After staying in Malta for three months, you must visit the Identity Malta Agency to obtain a residence permit.

Overall, Malta’s tax system offers a range of benefits for those who want to live or establish a business there.

Housing and Accommodation

Types of Accommodation

Malta offers a wide range of housing options, from traditional Maltese townhouses to modern apartments and luxurious villas. Rental prices vary depending on location, size, and amenities.

Finding a Place to Live

Searching for accommodation in Malta can be done online, through local newspapers, or with the assistance of real estate agents. It’s essential to inspect the property and understand the terms of the lease before signing any agreements.

Employment and Business Opportunities

Job Market

Malta’s job market is diverse, with opportunities in various sectors. The island has a low unemployment rate, and English-speaking professionals are in high demand.

Starting a Business

Malta is an attractive destination for entrepreneurs, thanks to its business-friendly environment, competitive tax regime, and skilled workforce. Setting up a business in Malta is relatively straightforward, and various incentives are available to support new ventures.

Bank accounts in Malta

For expats looking to open a bank account in Malta, there are two banks worth considering: BOV Bank and HSBC. Both offer low fees and easy account opening in person.

Additionally, opening a multi-currency account with TransferWise can be extremely useful for day-to-day banking as an expat.

TransferWise offers a free multi-currency account with a free MasterCard debit card, no opening or maintenance fees, and fast, reliable international transfers.

Education and Healthcare

International Schools

Expats with children can choose from several international schools in Malta, offering British, American, or International Baccalaureate curricula.

Healthcare System

Malta boasts an excellent healthcare system, with public and private facilities available. The public healthcare system is accessible to all residents, while private healthcare offers additional options and shorter waiting times. Expats are advised to obtain comprehensive health insurance to cover private medical costs.

Lifestyle and Leisure

Cuisine and Dining

Maltese cuisine is a delightful fusion of Mediterranean flavors, with influences from Italian, Arabic, and British culinary traditions. Local dishes are based on fresh, seasonal ingredients, and dining out in Malta is a true gastronomic experience.

Culture and Entertainment

Malta has a vibrant cultural scene, with numerous museums, galleries, and historical sites to explore. The island hosts various events and festivals throughout the year, celebrating its rich history and diverse influences.

Outdoor Activities

With its stunning coastline, crystal-clear waters, and beautiful countryside, Malta is a paradise for outdoor enthusiasts. Activities such as hiking, cycling, diving, and water sports are popular among locals and expats alike.

Compared to other big European cities, the cost of living in Malta is generally 25% less expensive, depending on your lifestyle.

Here are some estimated costs of living in Malta:

Studio apartment in city center: Between €800 and €1500 per month

Hotel stay: €60 per night
Basic meal: €8 per person
Beer (0.5L): €5
Coworking space: €200 per month
Internet subscription: €40 per month

Getting Around

Public Transportation

Malta has an efficient public transport system, with buses being the primary mode of transport. Taxis and ridesharing services are also available, and ferries connect the main islands.

Driving in Malta

Driving in Malta is on the left side of the road, like in the UK. An international driving permit is required for non-EU/EEA citizens. Traffic can be congested in urban areas, and parking can be challenging to find.

Conclusion: Embracing the Maltese Lifestyle

Expatriation to Malta offers a unique opportunity to enjoy a Mediterranean lifestyle, with its warm climate, beautiful landscapes, and rich cultural heritage.

The island provides a welcoming environment for expats, with ample housing, job opportunities, and excellent healthcare and education systems.

If you’re considering a move to Malta, we hope this guide has provided valuable insights and practical information to help you plan your new adventure.

Frequently Asked Questions

1. Is Malta a safe country for expats?

Yes, Malta is considered one of the safest countries in Europe, with low crime rates and a friendly, welcoming atmosphere.

2. What is the cost of living in Malta?

The cost of living in Malta is relatively affordable compared to other European countries, although it depends on your lifestyle and spending habits.

3. Can I retire in Malta?

Yes, Malta is an attractive destination for retirees, thanks to its pleasant climate, excellent healthcare, and various retirement schemes for non-EU/EEA citizens.