Income Taxes, Social Security & Take-Home Pay
Malta has a progressive taxation system, under which individuals are taxed between 15 to 35% of their income. Highly qualified foreign professionals can benefit from a flat 15% tax rate on employment income. Both employers and employees each contribute 10% of gross salary to the social security system. All staff in Malta benefit from take-home pay that is higher than in many other European countries, due to the relatively low taxes and contributions.
Standard of Living
Malta is also one of the easiest places to relocate to in the EU and residents enjoy an exceptional standard of living: 10 months of sunshine, an English-speaking population, and a Mediterranean island setting in which it is easy to find one’s way around. Although Malta is a small country, it offers a variety of lifestyle choices that range from urban, cosmopolitan and luxurious to relaxed and rural. Boasting a diverse range of shopping, cultural and leisure activities, all at affordable rates, Malta provides expatriates with a unique opportunity to live every aspect of life to the full.
Cost of Living
Although on the rise, the cost of living in Malta is one of the lowest in Europe and ranks somewhere in the middle in terms of a global league table. On average, the cost is one third of that in the world’s most expensive cities. Everyday groceries are on average more expensive in Malta than in Eastern European countries, however they are cheaper than in most Western countries and in global business centres. Average rent for a one-bedroom apartment in the more popular Sliema/St.Julian’s area is around €700 per month, while in other localities it can be as low as €380. Banking, taxation, insurance, social security, utilities and communications services are sophisticated, professional and reliable, offering exceptional value without compromising on quality. State schools are free of charge, and the government pays for childcare services if both parents are working. There are no community taxes in Malta, and the collection of household waste is free for residents.
Personal Financial Services
Malta offers a wide choice of banking options, including local, international and private banks. The banks operate a strong network of ATMs and branches across the islands. All major cards are issued and accepted. All banks offer 24-hour telephone and online banking services to conveniently and efficiently manage your financial affairs. A host of insurance companies offer all levels of cover, such as home, motor and health insurance. If you plan to stay in Malta, it is advisable to apply for a Maltese eResidence document before opening a local bank account as this will speed up the process. If you have not received the eResidence before opening a bank account, you can use your passport. It is absolutely necessary in this case to provide a bank statement indicating your previous foreign address. You can also use utility bills for this purpose. Although procedures vary depending on the bank, your banker will most likely also ask you for an employment contract, an initial deposit and a lease agreement for your accommodation. All banks also offer foreign-currency accounts. Banks in Malta are open in the mornings from Monday to Saturday, with some branches offering late opening hours on certain days such as Fridays.