The Cost of Living in Malta – From Everyday Expenses to Luxury Living

The first rays of sunlight shimmer on the limestone terraces of Sliema, reflecting across the calm waters of the Mediterranean. A sleek yacht rocks gently in one of the many marinas dotted around the island, while the aroma of freshly baked ftira drifts from the bakeries seemingly on every other corner. On your private terrace, espresso in hand, you watch Malta wake - a place where daily life effortlessly blends history, culture, and sophistication.

For the affluent individual seeking not just a place to retire but a Mediterranean sanctuary of style, security and capital assurance, the island nation of Malta offers an alluring proposition. With its English‑language framework, European Union membership, and enviable climate, Malta invites you to imagine a life of refined ease.

But to paint that picture credibly you must weigh the elements that go beyond sunshine and sea‑views. For discerning expatriates and high-net-worth individuals, understanding the cost of living in Malta is essential to fully enjoy this Mediterranean lifestyle. The island balances practical expenses with high-end indulgences, from everyday essentials such as groceries, utilities, and transportation, to luxury investments including real estate, fine dining, and exclusive leisure experiences, allowing residents to manage daily living costs while enjoying the privileges of a truly refined Mediterranean lifestyle.

Malta at a Glance – Economy & Lifestyle

Malta combines a stable economy and a favourable tax regime with a lifestyle that attracts expatriates and high-net-worth individuals from around the world. Its Mediterranean charm blends historical streets, modern urban centres, and serene coastal retreats, offering both practical convenience and luxurious indulgence. Appreciating these economic and lifestyle factors allows discerning residents to strategically manage essential expenses while seamlessly integrating the premium experiences that define life at Malta’s most refined level.

Is Malta a Good Place to Retire?

Malta offers an exceptional blend of climate, comfort, and security, making it a compelling choice for those seeking a refined and fulfilling retirement. The island’s Mediterranean charm is complemented by a modern infrastructure, strong healthcare system, and favourable residency options, all supported by a vibrant property market that caters to discerning tastes. If you’re considering retirement in Malta, there are a number of factors to take into account:

Why it works

• English is an official language and is widely used across business, education, healthcare, and legal services.

• As a member of the EU and Schengen Zone, Malta offers residents a stable European base with reliable regulation and easy travel access.

• Malta’s climate and lifestyle are major drawcards, with mild winters, year-round sunshine, historic towns, and a stunning Mediterranean coastline.

• The property market benefits from limited land supply, steady foreign demand, and strong investment potential.

• For high-net-worth individuals, Malta’s residency programs and property market support wealth preservation, global mobility, and an elevated lifestyle.

What you should clarify

• Luxury in Malta emphasizes quality, service, and privacy. While the island offers high standards, ultra-luxury infrastructure - such as supercar services, private aviation facilities, and large yacht marinas - is more limited than in major hubs like Monaco or London.

• Coastal areas are highly sought after, and property prices reflect their desirability. Investment entry points are often higher than newcomers anticipate.

• Some practical considerations include narrow roads, limited parking in busy areas, seasonal tourist crowds, and a smaller-scale service network.

How Much Do I Need to Retire in Malta?

Crafting your lifestyle and numbers

Retiring in Malta with a luxury mindset requires budgeting above the typical expat level, because you’re after more than simply “comfortable”. You’re after quality finishes, sea‑views, service and discretion.

Monthly Lifestyle Budget

For a couple seeking elevated living, incorporating premium property, travel, concierge or staff, and strong amenities, the ballpark figure is €4,000 to €6,000+ per month.

• A luxury villa or penthouse in a prime zone demands higher overheads.

• Utilities and services for high‑end homes like villa’s or premium properties in Special Designated Areas can significantly exceed standard rates. For example, luxury utilities might run €500–€1,000/month or more.

• Regular travel, entertaining and service‑staff are added costs that need to be considered.

How Much Money Do You Need to Live Comfortably in Malta?

For those seeking a comfortable, well-appointed lifestyle in Malta, daily expenses remain pleasantly manageable compared to many other European destinations.

• A single resident living in a quality modern apartment can expect to spend around €800 per month on day-to-day essentials such as groceries, dining, and local transport - excluding rent.

• For a family of four, a comfortable routine that includes private schooling, a vehicle, and occasional leisure outings typically ranges between €3,000 and €4,500 per month, excluding property costs.

• Rental prices vary notably by location. In the island’s central or coastal zones, a one-bedroom apartment in the city centre averages around €1,600 per month. Those opting for ownership naturally offset one of the largest monthly expenses, allowing more flexibility and a more predictable cost of living.

Is It Better to Rent or Buy in Malta?

For high-net-worth individuals, the decision to rent or buy in Malta depends largely on your objectives. Whether you prioritise long-term investment, lifestyle stability, or flexibility, both options have distinct advantages, and understanding the nuances of each helps align your property strategy with your goals.

Buying Property in Malta

Purchasing a property in Malta allows you to integrate your residence into your broader portfolio, offering both lifestyle enjoyment and investment potential. Key advantages include:

• Asset ownership: Your home contributes directly to your investment portfolio.

• Customisation: Tailor finishes, layout, and service levels to your personal preferences.

• Appreciation potential: Malta’s luxury property market has demonstrated steady growth

Similarly, there are a few practical factors to take into account to ensure ownership aligns with your expectations and lifestyle:

• Upfront capital: Significant initial investment is required.

• Ownership costs: Service charges, property maintenance, and occasional major refurbishments add to ongoing expenses.

• Liquidity: While the market is active, resale of ultra-luxury properties may take longer than in larger global cities.

Property in Malta often serves as both a home and an investment, making due diligence essential, particularly around build quality, views, location, fees, and resale potential.

Capital Outlay for Property Ownership

Owning is a key part of the value equation for a high‑net‑worth investor‑resident.

• Property prices in Malta in 2025 vary across a wide range with the average apartment starting from €250,000 - €450,000; townhouses €400,000 - €600,000; villas €700,000 - €1,600,000+.

• Prices per square meter can vary from €2,000 to €5,500 depending on the location, finishes, size, amenities and surroundings.

Where Is the Nicest Place to Live in Malta?

Choosing the right location is just as important as selecting the property itself. Malta offers a variety of distinct settings, each with its own character, amenities, and lifestyle appeal. From vibrant coastal towns with bustling promenades to tranquil villages with panoramic sea views, the island caters to a wide range of tastes. For buyers and retirees, certain areas consistently stand out for their combination of prime real estate, convenience, and elevated quality of life, making them particularly attractive for both residence and long-term investment.

Sliema & St Julian’s

Sliema and St Julian’s on Malta’s eastern coast are renowned for vibrant, upscale waterfront living. These towns offer modern luxury apartments, bright architecture, lively marinas, and scenic promenades, making them a favourite for both residents and investors.

Valletta

Malta’s capital offers a unique blend of historic charm and cosmopolitan living. Its fortified streets, boutique shops, cultural landmarks, and harbour views appeal to those who value heritage alongside modern comforts.

The Three Cities (Birgu, Senglea, Cospicua)

Steeped in history, the Three Cities combine heritage charm with a waterside lifestyle. These areas are gaining popularity among buyers seeking character properties and strong rental yields.

Madliena & Ibragg

These northern residential districts are known for exclusive villas and private estates, offering privacy and panoramic countryside or sea views. They are particularly popular among high-net-worth buyers seeking a quiet, luxurious lifestyle.

Naxxar

Located in the northern heart of Malta, Naxxar combines traditional village charm with convenient access to key hubs. It offers a mix of modern homes, character townhouses, and upscale residences, appealing to buyers seeking a quieter lifestyle without sacrificing connectivity.

Mellieħa

Nestled in the north, Mellieħa is prized for tranquil coastal living with long sandy beaches and scenic vistas. The area is ideal for those seeking a peaceful environment while still within reach of Malta’s main hubs.

Gozo

Malta’s sister island, Gozo, is celebrated for unspoiled landscapes, slower pace, and coastal charm. It appeals to buyers seeking tranquillity, larger plots, and the opportunity to own a home with sweeping views over the Mediterranean.

What Are the Disadvantages of Living in Malta?

While Malta offers an exceptional lifestyle, even the most refined living comes with practical considerations. Understanding these factors in advance helps high-net-worth residents make informed decisions and align expectations with reality. Below are key points to take into account when planning life on the island:

• Price inflation in prime zones: Foreign demand combined with limited land supply drives premium pricing in sought-after areas

• Service infrastructure scale: While Malta offers excellent services, the depth of ultra-luxury infrastructure, such as niche medical specialties or bespoke concierge offerings, may not match that of global mega cities.

• Seasonality and tourist influx: Coastal towns become particularly lively during the summer months, which may impact those seeking complete seclusion.

• Hard water and older buildings: Many properties rely on rooftop water tanks, and additional costs for filtration or water softening may be needed.

• Traffic and parking in dense zones: Popular areas like Sliema and St Julian’s feature narrow roads and limited parking, which can be a practical consideration for owners of multiple vehicles.

• Space limitations in central zones: For buyers seeking expansive plots, large villas, or guesthouses, options in central locations are limited, often requiring a move further out, which can affect commute times and access to amenities.

What Is the Average Monthly Salary in Malta?

Looking at local salaries provides perspective on living costs in Malta. While average wages cover everyday expenses, higher-end property and living costs are above these benchmarks.

• Average net salary: Approximately €1,443/month

• Average gross salary: Around €1,750/month

• Minimum wage: Approximately €961/month

Can You Drink Tap Water in Malta?

Yes. Malta’s tap water meets EU drinking water standards and is safe for consumption. Due to the island’s geology and water infrastructure, the water can be hard and may have a noticeable mineral or chlorine taste. Some residents also purchase bottled water, have it delivered, or use services that provide dispensers with refillable bottles on a weekly or monthly schedule. Many properties use water softening or filtration systems - it’s advisable to check whether a building has these in place or consider installing one if needed.

Malta offers a unique blend of Mediterranean lifestyle, strategic location, and investment potential, making it an exceptional choice for those seeking both comfort and opportunity. From vibrant urban centres like Sliema and Valletta to tranquil retreats in Mellieħa and Gozo, the island provides a range of living experiences, supported by excellent infrastructure, English-speaking services, and a stable property market. While premium living requires careful planning and attention to property quality, service standards, and ongoing costs, the rewards are a residence that serves as both a home and a long-term investment, anchored in one of Europe’s most desirable climates and communities.

To explore the island’s prime residences and investment opportunities, contact Malta Sotheby’s International Realty on +356 2010 8077, visit www.maltasothebysrealty.com, or stop by our offices at the Portomaso Marina or the Tigné Point Pjazza.

Frequently Asked Questions

• How much do I need to retire comfortably in Malta? A high-net-worth individual can plan for €3,500–€5,000/month for comfort, excluding ultra-prime property purchases.

• Is Malta a good place to retire? Yes. Malta offers a stable climate, excellent healthcare, EU residency benefits, and a thriving property market.

• Should I rent or buy in Malta? Buy if your stay is long-term (5+ years) and you seek both lifestyle and investment. Rent for flexibility or short-term relocation.

• Can you drink tap water in Malta? Yes, tap water meets EU standards, though it can be hard; filtration or bottled water delivery is common.

• Are utilities expensive? Utilities and internet typically run €150–€200/month for a standard apartment, plus €30–€50 for high-speed internet.

• How is healthcare in Malta? Public healthcare is available and affordable. Private insurance offers faster access and more specialist choice.

• Are there good schools in Malta? Yes. Malta has international, private, and public schools, including English-language options like Verdala International and QSI International School.

• Are high-net-worth residency programs available? Yes. Malta offers programs like the Malta Permanent Residence Programme, tailored to wealthy individuals seeking lifestyle and mobility.

• What are typical property investment ranges for prime locations? Prime apartments or penthouses start around €600,000+, while larger villas or sea-view properties can cost significantly more.

• How busy is Malta during summer? Coastal towns can be lively in peak season and urban centres see increased tourist activity.

• Is Malta well-connected for travel in Europe? Yes. Malta’s airports and ports allow quick access to major European destinations, ideal for frequent travellers.