Moving to Malta from the USA can be an exciting journey into a Mediterranean lifestyle known for its rich history, vibrant culture, and welcoming climate. Whether you’re seeking a tranquil retirement, a new business venture, or simply a change of pace, Malta offers a unique European experience with the added benefits of an English-speaking population. When considering moving to Malta from the USA, there are several key things you need to know.
This guide is designed to walk you through the various pathways to Maltese citizenship and residency, the legal and administrative steps you’ll need to navigate, and the essential considerations for a smooth transition. We’ll delve into the nuances of the cost of living, healthcare, education, and lifestyles in different Maltese cities, providing a comprehensive view of what life on this charming island offers for American expatriates.
How To Move To Malta From The USA
Obtain Citizenship Through Investment
If you’re an American considering a move to Malta, the Citizenship by Investment Program, updated in November 2020, offers a viable path. Officially known as Naturalization for Exceptional Services by Direct Investment, it provides a way to Maltese citizenship through a significant financial contribution to the country’s economy. You’ll need to invest in a mix of government-approved financial instruments, including a mandatory donation to Malta’s national development fund, purchasing government-sanctioned stocks or bonds, and making a real estate investment.
You’re looking at a minimum investment of $650,000, which comes with a three-year residency period before you can snag citizenship. If you’re in a hurry, a higher investment of $810,000 cuts the wait to just one year. Besides the financial investment, you’re also expected to chip in $10,800 to a registered charity and either buy or lease property in Malta, which you must hold onto for at least five years without the option to sublet or sell.
Snatching up Maltese citizenship comes with hefty perks. You’ll get the right to live, work, and study anywhere within the European Union, visa-free access to 183 countries, and a security boost for your family. But brace yourself—the process is detailed, taking up to 12 months to complete, and comes with extra legal fees ranging from $65,000 to $86,000. Keep in mind, the program’s pretty exclusive, capping at 400 successful applicants per year and a total limit of 1500 citizenships granted.
You must be at least 18 years old and will go through a stringent four-tier due diligence process to confirm your legitimacy. And if you’re worried about giving up your American citizenship, don’t be—Malta allows dual citizenship, letting you enjoy the benefits of both countries.
Obtain Malta Residency
For those who need more time to be ready to take the plunge into full citizenship, Malta also offers residency options, like the Malta Permanent Residence Program (MPRP). This program gives you the right to settle in Malta indefinitely and includes visa-free travel within the Schengen Area. The MPRP is especially appealing for families since it allows the inclusion of up to four generations in a single application.
To qualify, you’ll need to invest in Maltese property, with options starting from $119,000, and maintain this investment for a minimum of five years. The residency by investment program also requires a lease agreement, property investment, and contributions to the government. The application process, which includes due diligence and reviewing supporting documents, can take 3 to 7 months.
To keep your Golden Visa, you’ll need to fulfill a residency requirement of 36 months. This aligns with the program’s goal to contribute to Malta’s social improvement. You’re expected to be in good health, have comprehensive insurance, and stick to the terms of your lease agreement. Investments made through the MPRP directly benefit the local economy and community.
Residency in Malta allows for travel within the Schengen Zone. It opens the door to a growing economy and the privilege of residing indefinitely in an EU country. For those eyeing the benefits of dual citizenship, getting a Maltese residency is a stepping stone towards a Maltese passport, which offers extensive travel freedom and economic opportunities.
Legal and Administrative Steps
Registering for a Social Security Number in Malta
Securing a Social Security Number is a crucial step upon your arrival in Malta. This number is essential for employment purposes for individuals aged 16 to 65. It is tied to entitlements and obligations under the Social Security Act. Without a permanent Maltese Identity card, acquiring this number is a must.
An application and necessary documentation must be submitted, and the processing time is typically around two weeks. Once issued, your Social Security Number remains valid indefinitely and is essential for accessing various social services and fulfilling legal obligations in the country.
Understanding and Paying Taxes in Malta
Familiarizing yourself with the Maltese tax structure is crucial, particularly for those considering the citizenship route. Tax rates are progressive, with a spectrum from 0% to 35%, and your tax obligations depend on your residency and domicile status in Malta.
If you’re domiciled and ordinarily resident, your global income is subject to taxation. However, if you’re only a resident, you’re taxed on Maltese-sourced income and any foreign income that is remitted to Malta. Tax incentive programs like the Global Residence Programme and the Malta Retirement Programme offer beneficial tax rates and conditions for eligible individuals.
It’s important to note that certain residents are subject to minimum tax contributions, and specific income types, such as certain overtime or royalties, may be eligible for reduced tax rates. Understanding these nuances is key to financial planning and maintaining tax compliance.
Getting a Driver’s License and Transportation Tips
For US expatriates, driving in Malta can be a convenient way to explore the island. Initially, your foreign driver’s license is valid for use, but eventually, you’ll need to obtain a Maltese license. Some expatriates may be exempt from taking a driving test when exchanging their licenses, depending on bilateral agreements.
To apply for a Maltese driving license, possession of a Maltese ID card is a prerequisite. Be aware that Malta enforces a stringent point system for driving offenses, which can result in fines and penalties.
For those who prefer not to drive, Malta’s public transport system is a reliable alternative for commuting and exploring the island.
Education and Schooling Options for Children
Relocating to Malta with children means prioritizing their education. The island offers public, private, and church-affiliated schools, with the majority of Maltese instruction except for English language classes. While private schools are recognized for their high standards, they come with a cost. In contrast, church schools are tuition-free but expect a yearly contribution.
International schools are available, offering curricula such as the International Baccalaureate and US and UK educational systems, which can be advantageous for expatriate children. The government is dedicated to providing inclusive education for learners with special needs.
The prevalence of tutoring services is less common in Malta, which may influence your supplementary educational support choices.
Buying Property In Malta As A US Expat
For US expatriates, purchasing property in Malta can be an attractive option, especially when considering citizenship through investment. Non-EU nationals are required to obtain an Acquisition of Immovable Property (AIP) permit, and there are minimum price requirements for a residence permit for various properties. The AIP permit is typically processed within 35 days, provided all documentation is in order.
There are circumstances where an AIP permit is not necessary, such as when purchasing in Special Designated Areas or for EU citizens under specific conditions. Additionally, programs like the Malta Global Residence Programme and the CBI can facilitate the path to residency and citizenship through property acquisition, subject to certain criteria and stipulations.
Acquainting yourself with these regulations is beneficial for a smooth property acquisition process in Malta.
Cost Of Living in Malta Compared to The USA
Suppose you’re considering a move to Malta, especially through citizenship by investment. In that case, getting a handle on the cost of living is important. The Mediterranean island offers a more affordable lifestyle compared to the United States. On average, living in Malta is about 42% less expensive.
However, the average after-tax salary in Malta only covers living expenses for about 1.1 months, which is less than the two months coverage in the United States. This suggests that while the cost of living is lower, so is the local income level.
Rental and Housing Costs
Housing is a big deal when you’re relocating. In Malta, rental costs can swing widely based on location and property type. For a single person, the average rent is around $814, while a family might shell out about $1579.
To give you an idea of the range, a furnished two-bedroom apartment in Mellieħa might set you back roughly $700 per month. Meanwhile, a similar property with sea views in a popular area like Sliema could go over $2000 per month.
If you’re looking to buy, Malta has plenty of options. New apartments start at about $199,000. For those seeking residency through property investment, you’re looking at a minimum purchase price of $300,000 in Gozo, the south of Malta, and $350,000 in other parts of the country.
Grocery Costs
Groceries are another key part of your cost of living. In Malta, you might spend an average of $438 a month on groceries for one person, which is lower than the $606 average in the United States.
Since Malta imports most of its food due to limited farmland, this can influence prices. Even so, costs are on par with other Mediterranean countries, partly because Malta is part of the EU free trade zone.
Healthcare Costs
Healthcare is one area where Malta’s special tax status really shines, with costs much lower than in the U.S. Malta’s healthcare system is top-notch, ranking 11th in the world according to the World Health Organization.
The public healthcare system offers services free at the point of delivery, funded by taxes, and is available to all Maltese citizens and European Union residents with a European Health Insurance Card (EHIC).
For non-EU citizens, including those from the USA, private healthcare insurance is a must. Luckily, private healthcare insurance in Malta won’t break the bank like it can in the U.S. Malta has a solid network of public hospitals, health clinics, and pharmacies.
The Mater Dei Hospital is the main public healthcare facility, and several private hospitals, such as Saint James Capua Hospital and Saint Thomas Hospital, provide alternatives to the public system.
Expats often suggest getting an international or worldwide health insurance policy for comprehensive coverage. Medical procedures in Malta generally cost less than in the United States so that you can save on various treatments and surgeries.
Pharmacies are plentiful in Malta, and many medications are available over the counter, which is super convenient for residents.
Best Cities To Live In Malta For US Expats
Valletta
Valletta, the capital city of Malta, offers a unique blend of history and modernity that’s particularly appealing if you’re seeking a culturally rich lifestyle. Known locally as Il-Belt, this southernmost European capital is one of the continent’s smallest, yet it packs a wealth of amenities into its compact space. You’ll find top-rated educational institutions, a plethora of historical sites, and easy access to the Mediterranean Sea.
Valletta’s strategic location near mainland Europe and the Middle East also presents lucrative opportunities if you’re business-minded and looking to expand your horizons. Despite its status as a capital, Valletta is noted for its tranquil atmosphere, a stark contrast to the bustling nature of many other European cities. The city’s designation as a UNESCO World Heritage Site ensures the preservation of its character. It imposes certain restrictions, particularly in terms of nightlife.
However, the city’s real estate market is diverse, offering everything from modest apartments to luxurious palazzos, with the northern side of the Grand Harbour being particularly fashionable. Valletta could be your ideal choice if you enjoy a quieter lifestyle steeped in culture and heritage.
Sliema
Sliema stands out as a prime location for expatriates, especially those from the United States, who are drawn to its cosmopolitan vibe and stunning seaside setting. This eastern coastal town is a hub of activity, with a population of 23,000, making it one of Malta’s most vibrant areas. Sliema’s allure is enhanced by its array of amenities, including reputable schools, upscale shopping, and some of the island’s finest dining establishments.
The real estate market in Sliema is influenced by its proximity to the seafront, with prices reflecting the desirability of ocean views. The town is characterized by a mix of quiet residential zones and lively commercial areas bustling with shops, bars, and cafes. Its central location provides shelter from the prevailing winds and boasts a modern marina, making it a favorite among yacht owners.
If you’re seeking a balance between the convenience of city living and the charm of coastal life, Sliema is an excellent choice.
Comino
Comino, a serene island a short ferry ride from the main island of Malta, offers a different pace of life for those looking to escape the hustle and bustle. Although smaller in size, Comino has a thriving business community, with sectors such as tourism, agriculture, and manufacturing. The island is known for its high quality of life, welcoming community, and slower pace, making it an attractive destination for families and individuals seeking tranquility.
The former island nation’s healthcare system and educational standards are highly regarded, adding to its appeal as a relocation destination. Comino presents an opportunity to enjoy a peaceful lifestyle while still benefiting from a developed community infrastructure.
Life in Malta Post-Move
Weather and Clothing Recommendations
Adjusting to Malta’s climate, characterized by its hot summers and mild, rainy winters, will be part of your new routine. Lightweight garments are advisable from June to September when temperatures soar. Conversely, the months from November to April bring cooler temperatures and occasional rainfall, so having a light raincoat and umbrella handy is advisable.
Respecting local customs is important, particularly in religious sites where modest attire is expected. For those who enjoy the island’s beaches, investing in dive shoes can enhance the experience, protecting your feet on the rocky coastline. For outdoor enthusiasts, sturdy footwear is recommended for navigating the scenic trails.
Exploring Leisure and Entertainment
The island’s entertainment offerings cater to a variety of tastes, with lively nightlife concentrated in areas like Paceville and Bugibba. Dining establishments across Malta embrace a relaxed atmosphere, often foregoing strict dress codes. Historical attractions abound, including the Hypogeum and the ancient temples of Hagar Qim, Mnajdra, and Tarxien. Art aficionados will appreciate the ornate St. John’s Co-Cathedral and its Caravaggio paintings.
For sports enthusiasts, football reigns supreme, though the island also hosts a plethora of other activities, from water sports to cultural festivals. Expatriates can join various clubs and societies, fostering connections within the community.
Health and Wellness Resources
With its long-standing tradition of public-financed care, the Maltese healthcare system ensures that residents have access to a wide array of medical services. The island is well-equipped with medical centers, and the healthcare workforce is robust, with many practitioners serving in both public and private capacities. Expatriates are advised to secure international health insurance for comprehensive coverage. Strategic partnerships, such as the one with Vitals Global Healthcare, bolster the healthcare system’s global reputation.
Opportunities for Employment and Starting a Business
Malta’s diverse economy offers employment prospects in IT, online gaming, and customer service sectors. While EU citizens may find it easier to secure employment, non-EU residents can also find opportunities with the appropriate work permit.
The Maltese government and business landscape is conducive to entrepreneurship, with straightforward regulations for company formation and a supportive tax system. Malta’s strategic Mediterranean location and business-friendly climate can be advantageous for those considering launching a venture.
Embrace Your New Maltese Chapter
Embarking on your Maltese journey, the allure of warm Mediterranean breezes and captivating cultural tapestries is now within reach. Through the Citizenship by Investment or the residency permit programs, Malta offers a gateway to the European lifestyle and presents a stable investment into your future and that of your family.
The steps to making the move are clear:
- Choose your investment path.
- Prepare for the due diligence procedures.
- Get ready to dive into the vibrant Maltese community and economy.
From the bustling streets of Valletta to the serene shores of Comino, your new life in Malta promises to be as enriching as it is beautiful.
Remember, the island is not just offering you a new passport; it’s opening doors to a lifestyle filled with opportunity, safety, and cultural richness. Welcome to Malta—your new home awaits.
FAQs
How much money do I need to immigrate to Malta?
The amount of money required to immigrate to Malta varies based on the type of visa or residency program you’re applying for. For example, the Malta Permanent Residence Programme requires a minimum investment of €125,000 in government contributions, property purchase or rental, and donations. It would also help to consider living expenses and health insurance costs. It’s advisable to consult with a legal expert specializing in Maltese immigration for precise figures and requirements.
Can an American get a job in Malta?
Yes, an American can get a job in Malta. However, non-EU citizens typically require a work permit, which the employer usually obtains on behalf of the employee. The job market in Malta is diverse, with opportunities in sectors like technology, gaming, finance, and tourism. Proficiency in English, Malta’s official language, is beneficial for job seekers.
Why is Malta popular with Americans?
Malta is popular with Americans for its rich history, Mediterranean climate, and English-speaking population. Its strategic location in the Mediterranean Sea makes it a hub for business and travel. Malta offers a high quality of life, a safe environment, and a mix of cultural influences. Additionally, its residency and citizenship programs are attractive to Americans seeking to live, work, or retire in Europe.
Can I retire to Malta from the USA?
Yes, you can retire to Malta from the USA. Malta offers various attractive residency schemes to retirees, such as the Malta Retirement Programme, which offers favorable tax conditions. To qualify, one must meet specific income requirements, purchase or rent property in Malta, and not spend more than 183 days a year in any other country. Malta’s pleasant climate, healthcare system, and English-speaking environment make it a popular retirement destination.
Can an American buy a home in Malta?
Yes, an American can buy a home in Malta. There are no restrictions on foreigners purchasing property in Malta. However, there are specific procedures and requirements to follow, especially for non-EU citizens. In some cases, a permit might be required, and minimum property value thresholds must be met. It’s advisable to consult with a real estate attorney or a local real estate agent to understand the specific regulations and process.
