Living in Malta: The Ultimate Expat Guide for 2025

​​​​The world of European investment migration is in a constant state of flux. 

Under intense pressure from various factions in the European Union, residence by investment programs in countries like Portugal and Spain have been dismantled or radically revamped. 

Even Malta, one of the most long-standing players in the field, has faced scrutiny, forcing it to re-engineer its residency and citizenship offerings.

However, where other programs have simply folded, Malta chose to evolve its offerings into the current, more stringent framework for residency and citizenship for exceptional services. 

Aside from being highly resilient in the face of controversy, Malta is also undoubtedly a place of substance. That’s easy to see when you look at the quality of life, the tax benefits, the luxury on offer and the influx of capital.

Furthermore, Malta is a country where English is the language of law and business, removing a layer of operational risk and complexity for expats. 

These practical advantages are paired with a powerful, non-domiciled tax system, which protects foreign-sourced income and capital gains.

As a result, the jurisdiction is unabashedly top-tier. 

So far, it seems Malta checks all the right boxes, but how does it stack up in terms of day-to-day living? 

Pros and Cons of Living in Malta

Choosing a new country to live in means accepting a specific set of advantages in exchange for the challenges. In Malta, that trade-off is particularly distinct.

Pros of Living in Malta

For anyone who has tried to set up a business or negotiate a contract in a foreign language, the experience of operating in Malta is a welcome relief. It is a country where the entire professional ecosystem, from its laws to its banking, functions in English, removing a huge resource and time drain. 

Decades of attracting foreign capital have also created a deep ecosystem of high-end corporate and legal services, meaning expert support for business and wealth structuring is readily available.

What makes it even better is its non-domiciled tax system. For anyone with international income streams, the framework can lead to a very low effective tax rate if structured correctly. 

Finally, Malta’s full integration into the EU, the Eurozone, and the Schengen Area affords geopolitical stability and frictionless travel throughout Europe.

These powerful advantages are what make a Mediterranean experience on a historic island worth it.

Cons of Living in Malta

The trade-off is based on Malta’s geography. 

The sheer concentration of growth and capital on a small island creates unavoidable daily pressures, from traffic congestion that complicates logistics to constant construction noise in many developing areas. 

There’s also the ‘island factor’ to consider. The smaller local market can mean a limited talent pool for hiring and higher costs for imported goods. While business is conducted in English, the underlying bureaucracy can still operate at a slower, more Mediterranean pace. 

Such nuances can frustrate those accustomed to the efficiency of other global hubs and are a practical reality of life on the island.

What is Living in Malta Like?

To truly experience life in Malta is to appreciate its layers. History and tradition are part of the fabric of daily life, influencing everything from its sun-bleached architecture to its modern business culture. 

For most expats, life is concentrated along the lively coastal towns of Sliema, St. Julian’s and the surrounding areas. In these areas, a distinctly relaxed Mediterranean social life, full of long seaside walks and lively piazzas, blends with an efficient professional world.

These areas are full of modern co-working spaces and a relatively high concentration of international talent.

When the workday ends, an evening passeggiata, or stroll along the seafront, is a cherished local tradition, while piazzas and restaurants come alive late into the evening. 

On weekends, the island’s compact size makes it simple to escape the hustle. A short drive can take you to the quiet, fortified city of Medina for lunch or to a secluded cove for an afternoon swim.

What is the Cost of Living in Malta? 

The cost of living in Malta is quite different from what most people are accustomed to. Your biggest expense – your tax bill – can be very low, while a trip to the supermarket for imported goods can feel expensive.

Cost of Living in Malta vs the United States

For an American arriving from a major city, the initial savings are apparent, particularly in housing and healthcare services. 

Data from comparison sites shows that renting a quality apartment is much cheaper than in cities like New York or Los Angeles. An accessible private healthcare system also means high-quality care for a fraction of the price of the US system.

However, focusing only on these points misses the bigger picture. 

The biggest financial advantage for a high earner isn’t the cost of accommodation but the potential tax efficiency of Malta’s non-domiciled system – an impact far greater than saving a few hundred euros on daily expenses. 

For the right person, this tax system is a clear winner when compared to the US, the UK or other legacy Western countries. 

Building Your Monthly Budget in Malta

While the lifestyle in Malta is a major draw, it’s important to know what to expect.

For a couple seeking a high standard of living in a prime area like Sliema or St. Julian’s, a monthly budget can look like this: 

•  A modern, well-located two-bedroom apartment typically costs between €1,500 and €2,500 per month. 
• On top of rent, you should account for another €200 to €300 for utilities, a figure that includes air conditioning during the hot summer months. 
• Daily life, including a generous budget for quality groceries and frequent dining out, can realistically add another €800 to €1,200, acknowledging the higher cost of imported goods on the island. 
• A healthy allocation of €700 to €1,200 or more would then comfortably cover public transport, gym memberships, entertainment, and other leisure activities. 

In total, a monthly budget of between €3,200 and €5,200 provides a couple with a comfortable, healthy and active lifestyle.

Is Living in Malta Safe?

Malta’s reputation as a relaxed holiday destination is underpinned by its personal safety. In fact, it is one of the most secure countries in Europe. 

The 2024 Global Peace Index ranks Malta 22nd out of 163 countries worldwide for peacefulness, placing it well ahead of the United Kingdom (34th) and the United States (132nd).

City-level data reinforces this overall trend of low violent crime. Like any major European tourist hub, however, a level of awareness about petty theft in crowded areas is sensible. 

How to Get Residency in Malta

 It’s important to know that Malta isn’t looking for just any investor. 

The country has positioned itself as a top-tier expat jurisdiction. 

As a result, its approach to residency involves thorough vetting of an applicant’s character and background in the form of due diligence.

For those who clear this initial hurdle, the pathway to long-term residency for non-EU nationals is the Malta Permanent Residence Programme, or MPRP. 

You’ll need to show assets worth at least €500,000 and buy a property valued at €375,00 or more. If you rent a property, the annual lease should be at least €14,000.

There’s also a government contribution of around €30,000 if you buy a property and €60,000 if you rent one. 

Finally, the main application fee is €50,000 with an additional €10,000 per dependent. 

Taxes in Malta

For entrepreneurs accustomed to high taxes, it can feel like your home system is designed to penalise success. 

Malta’s tax framework, however, is built on a different philosophy. 

For an individual resident, the system’s value lies in how it treats foreign income because Malta operates on a remittance basis of taxation. 

In a nutshell, any income earned from local sources is taxed at standard rates, as is foreign income brought into the country. However, foreign income kept abroad remains outside the Maltese tax net. 

Foreign capital gains are treated even more favourably, as they aren’t taxed for non-domiciled residents unless remitted to Malta. 

If you look past the headline numbers, ​​the country’s corporate tax rules are similarly appealing.

A company in Malta pays a standard corporate tax of 35%, a figure that often causes initial confusion. 

The reality for foreign shareholders, however, is very different. Through a long-established imputation and refund system, owners can receive a refund of most of the tax paid by their company on distributed profits. 

For most business activities (i.e., those which don’t fall into the OECD Pillar Two category), this effectively reduces the final tax on profits to just 5%.  

On top of that, the country has no inheritance or gift taxes, and it does not levy any annual net wealth or property taxes.

Expat Guide to Living in Malta for 2025: FAQs

Will Malta Treat You Best? 

The idea behind ‘going where you are treated best’ is to build an international plan for your life and business to help you thrive. 

Malta makes a powerful case for being such a place. Its favourable tax system, strong English business environment and safe European lifestyle make it a good place for both personal freedom and financial success. 

However, a truly successful global strategy rarely relies on a single country to solve every problem. 

Even a top-tier jurisdiction like Malta is best used as a powerful cornerstone, not the entire structure. 

A holistic plan might use Malta as a world-class residential and tax base, while leveraging a different country for specific banking needs or another for long-term asset protection. 

Assembling this bespoke portfolio of jurisdictions is no easy task. It requires a deep understanding of international law, tax treaties and banking regulations to guarantee that all the pieces work together in a cohesive and legal manner. 

Building that holistic plan for our clients is the work we do every day. If you are ready to create a strategy that truly treats you best, talk to the Nomad Capitalist team.