Retiring in Malta in 2022
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Is Retiring in Malta Safe?
Retiring in Malta is a fantastic opportunity if you’re wishing to improve the quality of your life in a tranquil and exotic European country that looks like it came straight out of a renaissance painting. You’ll find that the country is a safe place where English is spoken as one of the official languages, as well as a place with a top-notch medical system, reasonable living expenses, and a laid-back way of life.
Besides, you’ll get to enjoy great weather, island life, and high standards of living in Malta. The country is a fantastic alternative to consider if you’re seeking for a social retirement because it also offers a fantastic expat community.
For anyone from outside of Europe, particularly Americans looking to retire there, Malta offers a number of immigration visa schemes.
The Locals
The Maltese are hospitable, friendly, and accustomed to co-existing with expats, so you’ll find it easy to feel at home in the community. In addition to being proficient in numerous other European languages, the majority of people speak English or Italian as a second or even third language. There are always a ton of activities happening, such as markets, live music, exhibitions, festivals, and other types of gatherings. Retiring in Malta and finding fun things to do can be much simpler for you if you choose to settle here.
The Hows of Retiring in Malta
European Union, European Economic Area, and Swiss nationals who are not working and are receiving pensions are drawn by Malta’s retirement system. American retirees must apply for a different program, such as Malta’s Citizenship by Investment Scheme, if they want to spend their golden years in the country.
In general, the best way to retire in Malta will depend on your specific situation and nationality. Below are main paths that expats could pursue to retire in the country, depending on their particular circumstances:
1. Malta Permanent Residence Visa
Non-EU nationals are able to reside in Malta with the Malta permanent residence. To remain in the nation lawfully, you must renew your permanent residency certificates every year. Be aware that the permanent residency visa simply entitles you to remain in Malta; it does not permit employment. You can get your pension at home but are unable to work in Malta during your retirement.
Requirements for the Permanent Residence Permit
- Have a minimum yearly income of about $26,000
- Possess a clean criminal record
- Complete the interview process
- Open a bank account in Malta
- After being granted permanent residency, you must spend a minimum of about $133,000 on a home or about $80,000 on an apartment. You must also pay a minimum of about $5,000 in rent each year if you are unable to purchase a home.
2. The Malta Permanent Residence Program
The Malta Permanent Residence Program (MPRP) is a residence by investment scheme that allows qualified applicants to get a Certificate of Maltese Residence, giving them the right to dwell in Malta with their families for an indefinite period. The program is perfect for people who have sufficient capital assets and want to improve their independence and quality of life.
Applicants must meet the requirements listed below:
- Be citizens of non-EU, non-EEA, and non-Swiss third-party nations
- Not be a citizen of, or receive benefits from, a nation that the government has designated as being sanctioned
- Possess sufficient financial means to support themselves and their families without requiring the assistance of Malta’s social assistance system
- Prove they have sufficient capital assets totaling at least 500,000 euros, of which at least 150,000 euros must be in financial assets
- Have a spotless criminal record and be regarded as fit and proper
- Not present a risk to Malta’s national security
- File an application to a licensed agent
- The applicant is responsible for paying any program-related administrative costs
- Possess a valid travel authorization
- Purchase a comprehensive health insurance plan for all potential dangers while in Malta
- Carry travel insurance when crossing the Schengen region
3. Malta Citizenship by Investment (CES)
The Malta Citizenship by Naturalization for Exceptional Services scheme, a citizenship by investment program in Malta, grants investors a certificate of naturalization in exchange for making a certain amount of investment.
The Malta Citizenship by Investment Program is a fantastic option for non-EU expats who target retiring in Malta permanently because it makes it possible to obtain a Maltese passport in less than a year. Seniors who want to live or travel freely inside the EU have a terrific alternative by acquiring the high-ranking Maltese passport, which has a great tax structure that benefits foreigners with residence status. For instance, capital gains and income from overseas sources are not subject to taxation for individuals.
Requirements for the Malta Citizenship by Investment Program:
- You must make a substantial direct investment, a real estate investment, and a donation that together total at least 690,000 euros, plus expenses. You are required to make a minimum investment of 700,000 euros in residential real estate from that sum or sign a five-year lease for a minimum of 16,000 euros per year.
- No prior convictions
- Have a healthy body
How Much Do You Need When Retiring in Malta?
Roughly speaking, Malta’s cost of living isn’t excessive, but it does depend on your spending habits how much you’ll need to retire there. You could manage even with as little as $2,600 a month.
Cost of Living When Retiring in Malta
Everyone can find something to do and watch in Malta’s fantastic array of entertainment choices. Despite being an island, Malta has very low living expenses. That’s one of the key factors as to why expats are deciding to retire in this stunning country.
Global cost of living data aggregator Numbeo estimates meal at an inexpensive restaurant in Malta to cost 15 euros (as of the time of writing). Meanwhile, it estimates a mid-range restaurant to charge 65 euros for a three-course meal for two.
Rent for one-bedroom apartments inside and outside Malta’s city center cost 823 euros and 687 euros on average per month, respectively. The cost per square meter for buying an apartment within the city center is at 3,491 euros, while that outside of the area is at 2,519 euros.
The overall cost of living in the country for a family of four can reach an estimated average of 2,739 euros per month, while a single person can live off 748 euros a month, both excluding rent.
Retiring in Malta: Property Acquisition
Your lifestyle preferences, financial situation, and preference for city life or more peace and quiet will all have a significant impact on where you choose to buy real estate in Malta.
Generally speaking, you have two choices when purchasing real estate in Malta: purchase a property on your own or make an investment as part of the Malta Citizenship by Investment Program (which we discussed above).
Given that you may obtain a passport via the investment scheme and travel unrestricted throughout Europe, this option is highly suggested for retirees who want to make the most of their residency in Malta.
Retiring in Malta: Healthcare
Compared to having private health insurance in the US, Malta’s healthcare is of exceptional quality and is very reasonably priced.
Healthcare is available to all citizens of Malta free of charge. Despite this, a lot of people opt to pay for private plans due to the variety of services and security that such schemes provide.
It is advisable to sign up for a private medical care program if you are retiring in Malta. Healthcare is also free if you are an EU citizen with a valid E121 form, which greatly lowers the cost of living in Malta. To obtain a certificate of entitlement to healthcare, just utilize the E121 form.
Getting Around in Malta
Transportation in Malta is a breeze given its small size. Public buses are available to take you practically anyplace you need to go. Additionally, there is a ferry that travels night and day to Gozo, which is part of the Maltese archipelago. You can also quickly order a cab via a mobile device as another mode of transportation. As an alternative, you could rent or buy a car and drive on your own.
Retiring in Malta: Income Tax
When you retire to Malta, the tax burden on your pension will vary depending on your place of origin, the type of visa you have, and the location where your money is sent. Malta offers a variety of possibilities and has a comprehensive double taxation deal with several other nations, which is a plus. Beneficiaries of the special tax status granted under the Maltese Retirement Scheme are required to pay a minimum tax worth 7,500 euros in relation to the beneficiary and 500 euros per year of assessment for each dependent and household employee. This tax is applicable to income received in Malta that is derived from sources outside of the country.
Retiring in Malta for US Citizens
It is possible to retire in Malta from the US. The Citizenship by Investment Program or the Malta Permanent Residence Permit programs have allowed Americans to retire in Malta.
If you are a US citizen, below are three main reasons why you should think about retiring in Malta:
- Sizable American expat community
- High-quality living with reasonably priced real estate selections
- A secure island in the Mediterranean with excellent flight links to the rest of Europe
Life in Malta for retired Americans is everything but monotonous. The country’s inexpensive cost of living and simple residence choices for Americans are fantastic reasons to take into account when mulling retirement on the island. Malta also offers diving, beaches, UNESCO World Heritage Sites, and modern art.
Upsides of Retiring in Malta
Below is a list of the pros of retiring in Malta:
- Sun nearly all year round
- Visiting eccentric towns
- Mediterranean swimming and island-hopping
- A lengthy history and distinctive architecture
- A group of retirees and expats with similar interests
- A secure and peaceful way of life
Downsides of Retiring in Malta
Meanwhile, here are the cons of retiring on the island:
- Not too diverse due to its small size
- High population density
- Hordes of tourist flock to the country during the summer
- Prepaid mobile contracts, cabs, gas, and gym memberships can be pricey
- Summers are lengthy, which means that it could get very hot for extended periods
- Public healthcare needs improvement
- Government paperwork and bureaucracy can be tedious – just like (any) other locations
Best Places to Retire in Malta
Valletta
The walled city of Valletta is one of Europe’s smallest capital cities. It is a somewhat calm and pleasant city in spite of being a capital city. It’s among the best places to retire in Malta if you appreciate culture, arts, and legacy.
Being a UNESCO World Heritage Site involves certain obligations and restrictions, so there isn’t much of a nightlife in the area. The city is undoubtedly rich in culture and still has a somewhat bohemian vibe, regardless.
Valletta is not the most expensive city in terms of real estate, despite being the capital. It also offers a good selection of properties, ranging from basic one-bedroom apartments in an older apartment building to lavish and ornate palazzo that have been transformed.
Amid its growth, the expat community in Valletta is still relatively tiny.
Harbour Area
It’s worth considering the Harbour Area if you are a social butterfly who want a busier social life. Greater Valletta, another name for the Harbour Area, is centered around the Grand Harbour, one of the most magnificent natural harbors in the world.
The three cities off the Grand Harbour, namely Vittoriosa, Senglea, and Cospicua, as well as the areas of St. Julian’s and Sliema, are the most coveted places of Malta.
These destinations are leading the list of best places to retire in Malta if you want a more active, metropolitan lifestyle.
It is a highly vibrant and multicultural neighborhood with lots of stores, pubs, and cafes. It is crowded, built up, and frequently clogged with traffic all year round. Along the seafront, there is also a thriving nightlife.
Take note that Grand Harbour and the towns nearby are quite popular with visitors and young people, so it will be better for you to try other locations in Malta if you’re searching for a peaceful place to retire overseas.
Swieqi
The small town of Swieqi is located inland and west of St. Julian’s. It is a peaceful residential neighborhood that is only 15 minutes far from Sliema via bus, and Paceville and St. Julian’s are both close by and walkable.
The place is a favorite among the upper middle class residents because of its convenient location and serene atmosphere. Additionally, it includes all the facilities and amenities required to make life there convenient and enjoyable.
Pembroke
Pembroke, a coastal town, is located north of Swieqi. It is ideally located near Paceville as well, so Pembroke residents could take advantage of the amenities of both adjacent communities.
Pembroke’s coastline is rugged and rather undeveloped, and there are many hiking trails that run down the shore. The principal property types in this area include terraced homes, villas, and maisonettes.
Mellieha, St Paul’s Bay & Bugibba
The northern towns of Malta, such as Mellieha, St. Paul’s Bay, and Buibba, are also quite popular with expats.
Mellieha is a favorite among British retirees and is known for its beaches and gorgeous surroundings, which perfectly capture the old-world charm of Malta. The town also has a ferry connection to the island of Gozo.
In contrast to Mellieha and St Paul’s Bay, which are tranquil places, Bugibba is a bustling, energetic location with plenty of nighttime entertainment.
These towns provide a good selection of different residences, including both new construction and older homes for different tastes and budgets. Of the three, Mellieha’s properties are the most expensive.
However, all three towns provide more affordable real estate when compared to the Harbour Area.
Ta Xbiex
Ta Xbiex is a tiny village in the east of Malta that looks out onto the picturesque Marsamxett harbor. It is well known for its gorgeous marina and numerous foreign embassies, notably those of Egypt, Italy, France, and the British High Commission. The town is one of the costliest places in Malta for real estate, but is well-liked by both locals and expats.
The village is preferred by yacht owners due to its contemporary marina. It also boasts a beautiful district with several distinctive villas valued at millions of euros.
In addition to being in a prime location, Ta Xbiex Marina is protected from the usual north-westerly breezes. While the breakwater guards against a north-easterly surge, it is also naturally shielded from other wind directions.
The community provides all the services and conveniences required for a comfortable modern lifestyle. Ta Xbiex also houses a number of law, insurance, and accounting firms.
Great eateries and cafes along the seaside make the most of the setting and provide breathtaking harbor views.
Siggiewi
Siggiewi is a little village that’s only 10 kilometers far from Valetta. It is a charming location with an unusual L-shaped church square, conventional tight village streets, and loads of charm. Locals mingle at the several taverns dotted around the area.
Another well-known location is Ghar Lapsi, a little rocky cove below a section of the Dingli Cliffs that is a favorite destination for rock climbers and divers.
Qrendi
Several old yet charming Maltese homes, a few ancient towers in and around the hamlet, numerous chapels, and two well-known Neolithic temples are all things that make the little village of Qrendi famous.
Even though it’s a small village, the southern community is well-liked by immigrants, and contemporary suburban projects are being developed to give buyers a variety of properties to choose from.
Either Siggiewi or Qrendi are good options if you want a peaceful lifestyle. A tiny, primarily British expat community exists in both locations.
Marsaxlokk
Some of the island’s best seafood restaurants could be found in the charming fishing village of Marsaxlokk, which is located further down the coast.
If you want to live in Malta but avoid the vacationers and tourists, Marsaxlokk is one of the greatest spots to do so. Since there are shipyards and a power plant, tourists often don’t throng on this part of the island.
Marsaxlokk has two extremes: either you absolutely adore it for its calm and serene nature, or you absolutely despise it for having little to do.
Marsascala (or Marsaskala)
The little coastal town of Marsascala is located along the northern shore, northeast of Valletta.
The local expat community uses the stunning promenade at Marsascala’s bay as their favorite gathering area.
In the summer, the area comes to life and its population increases as Maltese families and tourists come to spend the summer in this charming little town.
Marsascala is home to a variety of up-to-date recreational amenities, banks, eateries, bars, restaurants, and little shops or supermarkets.
Marsascala, however, is even more serene than Marsaxlokk. It’s a good and quieter alternative to avoid the rush and bustle of big tourist areas like Sliema, St. Julian’s, and Bugibba, but it doesn’t really offer much more than a place to relax. Sure, you can opt to settle in this part of Malta if you love – perhaps even need – a solitary life by the sea more than anything else.
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Adam is an internationally recognised author on financial matters, with over 760.2 million answer views on Quora.com, a widely sold book on Amazon, and a contributor on Forbes.
