Cost of Living in Malta
What a month actually costs, with rent and salary context
Malta is no longer a cheap Mediterranean posting. Day-to-day costs sit around the middle of the European range, but housing has decoupled from local wages: rents and purchase prices have risen far faster than salaries for roughly a decade, and accommodation is the item that decides whether the arithmetic works.
| Statistics office | National Statistics Office Malta source |
| Median wages | Published annually by the NSO; local salaries are well below northern European levels source |
| One-bedroom rent, central and harbour areas | Commonly around EUR 900–1,400 per month |
| One-bedroom rent, southern Malta and Gozo | Commonly around EUR 600–850 per month |
| VAT | 18% standard rate source |
An indicative monthly budget for one person
| Item | Sliema or St Julian's (EUR) | Southern Malta or Gozo (EUR) |
|---|---|---|
| Rent, one-bedroom | 1,150 | 700 |
| Utilities and internet | 110 | 100 |
| Groceries | 320 | 300 |
| Public transport | free for residents | free for residents |
| Phone | 15 | 15 |
| Total before discretionary spending | 1,595 | 1,115 |
The tax position that draws people
Malta taxes residents who are not domiciled in Malta on a remittance basis. In broad terms, Maltese-sourced income and capital gains are taxable in the usual way, foreign income is taxed to the extent it is remitted to Malta, and foreign capital gains are generally outside the charge even when remitted. A minimum tax charge applies to certain non-domiciled residents above published income levels.
This is the main financial attraction of Maltese residence and it is also the area where generic advice is least reliable. Domicile, the source of each income stream and the mechanics of remittance all bear on the outcome, and the Commissioner for Revenue's published guidance should be the starting point rather than a summary.
Ordinary employment income earned in Malta is taxed at progressive rates without any of this benefit, so the remittance basis matters to people with foreign income and not to people on a local payroll.
Costs that surprise arrivals
- Rental deposits and agency commission, commonly amounting to several months of rent before the keys are handed over.
- Summer electricity, because air conditioning runs for months and bills are banded, so heavy use is charged at higher rates.
- Car ownership, since registration tax on imported vehicles is significant and parking in the harbour towns is scarce.
- Private schooling or church school fees where places in the preferred state schools are not available.
- Ferry and travel costs if living in Gozo while working on the main island, along with the time the crossing takes.
Public transport is free, and this is not a small point
Scheduled public bus travel is free for residents holding the relevant card. It is a genuine saving, though the network is slow and congested at peak times and in summer, and many residents conclude they need a vehicle or a scooter regardless.
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Official sources
Checked against these pages in September 2026. Fees and processing times change without notice — confirm before you act.