Are you planning to build a life in the small island country of Malta? In this article, you will find out if Malta is a suitable country for you.
- 553,214 people live in Malta, of which about 20% are expatriates.
Located in the south of Europe, Malta is an island country in the Mediterranean Sea. It belongs to the European Union and is governed by Parliamentary Democracy. It is also landlocked with Tunisia, Libya, Greece and Italy.
If you have plans to live in Malta, a tranquil country, you must have information about the country’s economy and cost of living.
This ultimate guide will walk you through and give you a comprehensive overview of the pros and cons of Malta.
Let’s get to the point.
Benefits of Living in Malta
Benefits of living in Malta that you may enjoy:
- Malta has a high-quality healthcare system and highly developed medical facilities.
- The two official languages in Malta are Maltese and English, making it easy for expats to communicate.
- Most of the year is sunny, and the Mediterranean climate improves the quality of life.
- Malta is strategically located between Europe, Africa, and the Middle East, making it easy for frequent travelers to connect.
- Malta is a member of the European Union and offers free travel and freer trade with European countries.
- Being a small country, moving from one region to another is easy.
- The Maltese people have a tolerant character and have a good level of communication with foreigners.
- A person with a residence permit in Malta can travel freely to the Schengen areas.
- Thanks to its business-friendly tax system, it has an ideal environment for entrepreneurs and freelancers.
Below, we will briefly discuss the three most important benefits of Malta.
Affordable Healthcare System
- According to Statista data, Malta ranks 19th in the ranking of the best healthcare system in the world.
Malta has a quality healthcare system that covers Maltese and EU citizens. However, non-EU expats use health insurance at an affordable cost.
It is no coincidence that Malta’s healthcare system is affordable and of good quality for foreigners. The government allocates 10% of the GDP to healthcare.
In addition, it would not be correct to make a clear statement about the prices of medicines in Malta because there can be significant differences depending on the type of medicine. That is, there may be more expensive and cheaper medicines than in other countries.
High Quality Of Life
- Malta has a ‘moderate’ quality of life with a score of 132.29 (Numbeo).
Some of the factors that enhance expat life in Malta and improve the overall quality of life are:
- Temperate Mediterranean climate
- Low crime rate
- Life near the sea
- Low traffic problem
- Quality health service
- Low taxes
- Hospitable people
Mild Mediterranean Climate
Another aspect that increases the quality of life in Malta is the climate. The Mediterranean climate prevails, and there is constant sunshine, which has a positive effect on happiness.
In addition, various studies show that mild climates positively affect happiness levels. If you do not like cloudy weather, you will love Malta’s climate.
Finally, it is essential to remember that Malta is surrounded by the sea. Experts agree that living close to the sea has a positive effect on mood.
So, you can always take beach walks in this island country surrounded by the sea and keep your holiday one step away.
Cost of Living in Malta
Let’s examine the price of living in Malta, compare it with the costs in other countries, and examine the effect of inflation.
Overview of Expenses
Although Malta has an inflation-prone economy, purchasing power is still average.
Currently, one person’s monthly cost of living is around €768, excluding rent. The average monthly salary (after tax) is €1,453.
Some examples of basic expenses:
- You will need about €300 for your weekly grocery shopping if you prefer to cook at home. However, if you want to enjoy a meal out, plan a budget of €70 for a dinner for two.
- If you regularly use public transport, you should pay €26 per month. If you prefer a taxi, the starting price for short distances is €5.
- Consider setting aside €50-100 per month for health insurance. Be sure to include medical expenses in your budget for unexpected situations.
- You can spend €60-100 per month on entertainment for an active social life.
Comparison with the USA
If you are considering moving to Malta from the USA, you also need to know the differences in the cost of living.
When considering food expenditures, you should budget between $350 and $500 per month for groceries in the US, whereas in Malta, this amount ranges between €250 €350.
This shows that Malta offers a more affordable option regarding grocery costs, but restaurant prices are close in both countries.
Regarding utilities, basic bills such as electricity, water, and heating are around $207 in the US, while in Malta, this figure is around €90.
Similarly, internet costs are more affordable in Malta at around $33 compared to $71 in the US.
Impact of Inflation
Malta’s annual inflation rate fell from 2.4% to 2.1% in November 2024, down from 2.4% in November, returning to its lowest levels in the last 3 years. This means that the inflation effect, which has been felt in Malta for several years, may provide some further relief to purchasing power. This, in turn, leads to price stabilization and boosts consumer confidence.
Real Estate in Malta
When it comes to relocating, it is impossible not to look at the property market in Malta. Let’s take a brief look at the property market below and make a rental/purchase comparison.
Overview of the property market
Let’s take a brief look at the Maltese property market.
- In the first three quarters of 2024, there was a 4.5% increase in house sales.
- The biggest increases were in areas such as Santa Luċija (82.6%), while the biggest decreases were in places such as Ħal Balzan (57.9%).
Regional diversity makes choosing the right location more important. Before investing, you can research the growth potential of regions.
Price growth by property type:
- Apartments: 8.8% annual increase (6.5% after inflation).
- Maisonettes: 1.6% increase, 0.6% decrease after inflation.
- Terraced houses: 3.2% increase (1% after inflation).
- Villas and historic houses: 6.4% increase (4.2% after inflation).
Rental vs. Buying Options
We will compare rental and buying costs between the USA and Malta.
Rental costs
- USA: Rent for 1-bedroom apartments ranges from $1,757 in the city center to $1,449 outside. 3 bedrooms rent for $2,945 in the city center and $2,402 outside.
- Malta: 1 bedroom apartments from 960€ in the city center, 803€ outside. 3 bedrooms €1,630 in the city centre, €1,264 outside.
Malta’s rent is almost twice as low, 40-50% lower than in the US. Therefore, Malta is significantly more advantageous if you want to reduce your rent costs.
Malta is a much better option, especially if you are a freelancer earning the same salary worldwide.
Buying Costs
- USA: $3,170/m² in the city center, $2,680/m² outside.
- Malta: 3,725€/m² in the city center, 2,851€/m² outside.
Malta’s city center is more expensive than the US’s, while the outskirts are similar.
Buying a house in the city center is more expensive in Malta than in the US. Outside the city center, the costs in both countries are close.
Common Neighborhoods for Expats
If you are coming to Malta for the first time, move to the communal neighborhoods popular among expats in Malta. This will make it easier for you to acclimatize and socialize.
The most popular communal neighborhood for expats is Sliema, which has the highest population density on the island. There is a lot of trade and a wide choice of cafes, bars, restaurants, and shopping centers.
Another location is Saint Julian’s, which young professionals generally prefer. You can choose this place for lively nightlife and entertainment venues.
If you are looking for other alternatives, we recommend you look at Valletta, Pembroke, and Mellieha Heights residential areas.
Residency and Citizenship
As an American, wanting to live in Malta is not enough because you must apply for the right programs to gain residency and citizenship.
Let’s take a brief look at the programs that allow you to live and work in Malta.
Residency Programs Available
Malta has a residency program that individuals and families can apply for. However, applicants must invest a certain amount and meet specific requirements.
If you want to obtain a residence permit in Malta, the first requirement is to show assets of at least €500,000 or to buy/rent a property.
In this way, you can obtain a residence permit in Malta, travel visa-free to Schengen countries, and benefit from tax reductions.
Finally, do not forget that you must protect your property investment for 5 years. If accepted, this program will provide you and your family with long-term security.
Pathways to Maltese Citizenship
Although there are many ways to obtain Maltese citizenship, none are free. You have to be patient and fulfill specific requirements.
Some of the ways you can obtain citizenship:
- Malta Citizenship by Investment
- Citizenship by Birth or Descent
- Citizenship by Marriage
- Citizenship by Naturalization
In addition, Malta is one of the ‘Golden Visa Countries.’
If you wish, you can invest €690,000 in a Malta Golden Visa and gain residency. This will give you European connections, educational opportunities, and new job opportunities in the job market of Malta.
Conclusion
Malta is a small, practical, and welcoming country with many advantages for expats.
In addition, it provides a good balance between convenience and quality of life, from affordable healthcare to the Mediterranean lifestyle.
Today, in this article, we talked about Malta’s cost of living, the differences with the US, residency programs, and why it is a better option.
If you are considering making Malta your new home, you can make up your mind using this guide.
Frequently Asked Questions
Can a US citizen live in Malta?
Yes, US citizens can live in Malta. While a visa isn’t required for short stays, longer stays require a residence permit. Options include the Malta Permanent Residence Program or the Digital Nomad Visa for remote workers.
Is Malta a good place to live?
Malta is known as one of the good places to live for expats. Moreover, the cost of living is lower than in many other European countries. The rich history and high quality of life in Malta make it appealing to many.
Are Americans welcome in Malta?
The Maltese people are known for their friendly and welcoming environment towards foreigners. Considering the sizable expat community, it becomes easier for Americans to settle in Malta.
How much money do you need to live comfortably in Malta?
Malta has a lower cost of living than the US in general, depending on the lifestyle and location.
How is it like living in Malta?
The Maltese healthcare system provides free or low-cost medical treatment. Private health insurance is also available.
Malta is also known for its three Unesco World Heritage sites: the City of Valletta, the Megalithic Temples, and the Ħal Saflieni Hypogeum. The rich history of Malta also makes it interesting for those who are interested in exploring different cultures. Another advantage of living in Malta is that you can also visit other European countries as Malta is close to the Mediterranean.
Although it is not the cheapest country in Europe, Malta still offers a relatively affordable cost of living. The Maltese language is the national language that is influenced by Arabic and Italian. However, English is an official language, and it is widely spoken in the country.
Furthermore, make sure you understand the details bout the tax benefits, income tax, corporate tax, or how to open a bank account in Malta. Some laws might be different than your home country, whether it is one of the non-EU countries or EU countries.
