Becoming an Expat: What every American needs to know before retiring in Malta.
Are you ready for a life outside of the U.S.? After working hard, you deserve the calm ocean waves and welcoming island of Malta to greet you with open arms. This country is rich in color, architecture, and history. If all of those things are intriguing, this is the place for you.
Here’s a practical guide to help you make the move, from the early stages of preparation to managing your new life overseas. 🌊
Top 10 Places to Visit in Malta
- Mdina Old City
- St. John’s Co-Cathedral
- Popeye Village Malta
- Discover Blue Lagoon
- Malta National Aquarium
- Upper Barrakka Gardens
- St Julian’s City and Beaches
- Lascaris War rooms
- The Citadel
- Gozo
Research and Planning
Language
The official languages are Maltese and English. Although most natives mostly speak Maltese, English is widely spoken as well. While you brush up on some conversational Maltese, rest assured you will be able to talk to someone for help in the meantime.
Cost of Living
According to World Population Review, the average annual cost of living in America is $61,334.
The average annual cost of living in Malta for a single person varies from $10,800 (€8,744) to $12,000 (€10,492) as calculated by Immigrant Invest.
Visa and Residency
To retire in Italy, you will need to obtain a residence visa or partake in the Malta Permanent Residence Program. To be granted this visa you will need:
- Proof of financial means (net worth of $40,000 or annual income of at least $27,000)
- Go through an interview process
- Provide a clean criminal record
- To be retired (not working)
Preparing
Mail Forwarding
Make sure to set up a U.S. PO box with a trusted family member or friend or use a digital mailbox service to start. Once you have settled in, consider transferring all of your mail to your new address.
Health Insurance
Malta offers both public and private healthcare facilities. Malta provides free public healthcare for all citizens, but you have the right to purchase a private healthcare plan. This could provide lower co-pays and costs for procedures and medications.
Income Access
Make sure that you maintain your US bank account (preferably one with little-to-no international transaction fees).
Set up your social security or pension payments to be direct deposited into the account you will be using in Malta.
Long-Term Considerations
Plan for Taxes
U.S. citizens are required to pay income taxes on worldwide income, regardless of where they live – but don’t worry – Malta has a tax treaty with the U.S. to prevent double taxation of income earned abroad. You will still report any foreign bank accounts as well as any income earned (if any). It is important to work with a certified professional to ensure you are filing correctly.
Consider hiring an expat tax advisor to help you maintain compliance with the IRS.
Consider the implications of:
To purchase a home, non-EU citizens are required to obtain an Acquisition of Immovable Property Permit. Note that this can take some time, so be sure to get this completed with a notary as you complete your other requirements.
Working with a direct agent in Malta will give you the best experience on purchasing your new forever home in paradise without breaking the bank or any laws.
Conclusion
Retiring in Malta isn’t just possible—it can be fairly simple when following their guidelines. With smart planning around a permanent visa, finances, healthcare, and legal responsibilities, your dream of retiring in paradise can become a reality. The beach and history is calling your name!
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