How to Retire in Malta: Costs, Visas and More

Malta is a five-island archipelago located just 100 miles south of Sicily, Italy. As a member of the European Union, this nation boasts vibrant cities and pristine, crystal-clear waters, making it an increasingly popular destination for retirees seeking a picturesque and culturally rich environment. However, before making the decision to retire in Malta, it’s essential to understand the various aspects that come with such a move. From the cost of living to the healthcare and systems, there are several factors to consider.

For those contemplating this transition, consulting a financial advisor can help you prepare your finances and ensure a smooth adjustment to your new lifestyle.

Getting a Visa

Perhaps the best visa for American retirees is Malta’s Permanent Residence Programme. It allows you to live, but not work, in the country. This means you can collect retirement income at home, but not work in retirement in Malta. That’s an important distinction to keep in mind as you plan your retirement budget.

This permit grants permanent residency for life, but is investment-based, and not targeted specifically at retirees. Applicants must demonstrate assets totaling either €500,000 (with at least €150,000 in financial assets) or €650,000 (with at least €75,000 in cash or securities) ¹ .

Applicants also must buy or rent property in Malta that meets the program’s minimum value requirements:

• Purchase: at least €375,000 in Malta or Gozo; or
• Rent: at least €14,000 per year for five years.

All applicants must also pay:

• A €37,000 government contribution (regardless of whether they buy or rent property),
• A €60,000 administration fee for the main applicant (plus €7,500 for each additional adult dependent),
• A €2,000 charitable donation to an approved Maltese NGO.

A one‑year temporary residence card is now issued after initial checks and payment of a preliminary fee of around €15,000 for applications submitted on or after mid‑2025. The full process generally takes six months to a year and includes due diligence, documentation, and completion of all required investments.

Applicants must also submit proof of a clean criminal record, demonstrate a legitimate source of funds, and obtain health insurance. Those who wish to work in Malta must apply for a separate work permit or license, even after gaining residency. There is no minimum stay requirement to maintain residency, though tax residence is typically based on spending more than 183 days per year in Malta.

Cost of Living in Malta

Malta’s cost of living is generally lower than in many parts of Western Europe and major U.S. cities, although expenses vary depending on where you live and your lifestyle. Popular coastal communities such as Sliema, St. Julian’s and Valletta tend to have the highest housing costs, while inland towns and smaller villages often offer more affordable rents and home prices.

Housing is typically the largest expense for retirees. Renting a one-bedroom apartment outside the most popular tourist areas is generally more affordable than in many comparable Mediterranean destinations, while utilities, internet and public transportation are also reasonably priced. Grocery costs are moderate, particularly if you purchase locally produced foods, though imported goods can be more expensive.

A single retiree’s monthly budget will depend on housing choices and spending habits, but many expatriates find they can live comfortably on less than they would spend in many large U.S. metropolitan areas.

Malta Housing

If you are considering a move to Malta, it’s important to understand the home-buying process and what’s involved. The first thing to know is that non-EU citizens must obtain an Acquisition of Immovable Property (AIP) Permit from the Ministry of Finance. This process typically takes about three months. A notary public is necessary and will lodge the AIP on your behalf, and can assist in many other aspects of purchasing a home.

The AIP permit will only allow you to purchase one residential property with the intent to be used by you and your family. There are districts called Portomaso, Tigne Project, Cottonera Waterfront and Charmai on the island of Gozo, in which people can purchase more than one property.

Once you’ve chosen a notary public and have found a property that you want to buy, the next step is to contact the seller or real estate agent to make an offer. Then, your notary will draw up a purchase agreement. Finally, both the buyer and seller agree on all the terms and sign the document.

The purchase agreement is good for three months. During these few months, the notary will submit all the necessary paperwork and check the background of the property. When all their work is finished, they’ll prepare the final deed. Both parties will also need to sign the document. The balance due on the home and stamp tax will be paid at this time.

The buyer is expected to pay 10% of the property’s value at the time of signing for a down payment. A 1% stamp tax will also be given to the notary public, who will, in turn, pay the commissioner of Inland Revenue. Once all the fees are paid and documents are signed, the home-buying process is complete.

Taxes in Malta

When living in Malta, foreigners are only subject to taxes on two types of income. These types are capital gains and income you earn from Maltese sources. Therefore, if you work in Malta, you’ll be taxed on your income. Additionally, if you sell a property for a gain, you’ll be taxed on that income, as well.

As a U.S. resident, you’ll be expected to file taxes in the United States each year. You’ll have to report any foreign bank accounts, as well, and as a resident of Malta, you’ll have to have a Maltese bank account. If you earn any money outside of the U.S., you can use a few different provisions to reduce your U.S. taxable income.

These include the foreign earned income exclusion, the foreign tax credit and the foreign housing exclusion, among others. If you’d like to forecast your tax burden more specifically, you may want to consult with a tax expert who is familiar with both U.S. and Maltese tax laws.

Healthcare in Malta

Malta has both a publicly funded healthcare system and private facilities. The public healthcare system is subsidized by the government and is often referred to as the government healthcare service.

The public healthcare system is free, which is quite different from the U.S. In many countries, people choose to use private healthcare systems because the quality of care is much higher.

People in Malta have access to free primary and emergency care regardless of if the people have state health insurance. Residents have lifetime healthcare rights, however, U.S. retirees who do not pay into Malta’s Social Security system are not automatically eligible for free care.

If you choose to buy a private healthcare insurance plan, costs may range from between €700 and €1,500 annually, depending on age and coverage type ² .

Safety in Malta

Safety is an important consideration for anyone planning to retire abroad, and Malta consistently ranks as one of the safer countries in Europe. Violent crime is relatively uncommon, and most residents and visitors are more likely to encounter minor issues such as pickpocketing in crowded tourist areas than serious criminal activity. As with any destination, taking common-sense precautions, such as securing valuables and staying aware of your surroundings, can help reduce your risk.

Malta also offers a stable political environment and well-developed infrastructure, both of which contribute to its appeal among retirees. English is one of the country’s official languages, making it easier for many expatriates to navigate healthcare, banking and government services without facing a language barrier.

The country’s healthcare system is another factor that supports a safe and comfortable retirement. Malta provides both public and private healthcare, and its medical system is generally regarded as high quality. Many expatriates choose to supplement public coverage with private health insurance to reduce wait times and gain access to a wider network of providers.

Natural disasters are relatively rare in Malta compared with many other retirement destinations. The island is not prone to hurricanes, major earthquakes or severe winter weather, although retirees should be prepared for hot summers and occasional heat waves.

Bottom Line

Malta offers many of the qualities retirees look for in an overseas destination, including a Mediterranean climate, English-speaking population, high-quality healthcare and a relatively safe environment. Before making the move, take time to understand the country’s residency options, cost of living, tax rules and healthcare system so you can determine whether it fits your financial plan and retirement goals.

Tips for Achieving Your Retirement Goals

• Consider talking to a financial advisor about whether you’re financially prepared to retire outside the United States. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• It’s tough to plan for your retirement if you aren’t sure what kind of costs you’ll have when you retire. To get an idea of what to expect, use our free retirement calculator. You’ll need a few details about where you want to retire, when you want to retire and how much you have in savings.

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