Malta Compared to Europe: Affordable Living with Exceptional Standards

Malta compared to Europe offers a practical balance of affordable living and good quality of life . With strong healthcare and education systems, a safe environment, and various business opportunities, it is an appealing choice for expatriates looking to settle in Europe.

Cost of Living in Malta

The average salary in Malta is between €1,500 and €2,000 per month. For a family of four, the typical monthly cost of living is around €2,700, not including rent. This makes Malta a moderately priced option, especially for those interested in sectors like tourism and gaming. Rent can vary depending on location, with city-center apartments ranging from €900 to €1,200 for a one-bedroom, while outside the city, rents are generally lower, around €700 to €1,000. Additionally, utilities, groceries, and transportation costs are generally in line with other Mediterranean nations, though some items like dining out or imported goods can be more expensive.

Economic Growth and Quality of Life in Malta

Malta has experienced significant economic growth over the past decade. From 2014 to 2018, the country saw an annual GDP growth rate of 7.6%, far outpacing the EU average. The nation has diversified its economy with strong sectors in tourism, remote gaming, financial services, and digital industries. This economic boom has contributed to the overall standard of living, making Malta an increasingly attractive destination for both expatriates and investors.

Despite its economic success, the cost of living has risen slightly in recent years, particularly in areas like real estate and consumer goods. However, the country still remains a competitive option for those seeking a European lifestyle without the high expenses associated with larger countries.

Comparison of Cost of Living Index by Country

Below is a chart summarizing Malta’s cost of living index in comparison to other countries:

Data highlights that Malta is more affordable than Western European countries while offering a higher standard of living than nations with lower indices.

Malta’s Affordability in the Hospitality and Consumer Goods Sectors

One area where Malta truly stands out is in hospitality. The island’s restaurants, hotels, and cafes offer good value compared to other European destinations, especially in Southern Europe. Prices for dining out in Malta are about 20% lower than the European average. Whether you are looking to enjoy a meal in a local restaurant or take a quick coffee break, the cost is often much more affordable than in cities like Paris, Rome, or even Athens.

However, some costs in Malta can be higher than the European average, particularly in food, non-alcoholic beverages, and transportation. For instance, grocery prices are higher than in countries such as Bulgaria or Romania, but are still more affordable than in high-cost destinations like Sweden or Finland.

Malta Compared to European Countries

A Eurostat report confirms Malta’s affordability, ranking it below 17 other EU nations in price levels. While certain costs have risen in recent years, Malta remains a cost-effective destination within Europe.

Malta’s index of 82 reflects its affordability, especially compared to Denmark’s high index of 142. At the same time, countries such as Bulgaria and Romania offer cheaper alternatives. Price disparities are most noticeable in hospitality, tobacco, and alcohol, where Malta often outperforms its peers in value for money.

A Snapshot of Malta’s Cost-Effectiveness for Expatriates

For expats, Malta offers a unique opportunity to live in an EU member state while benefiting from a lower cost of living than many other European destinations. In addition to the affordable housing and food prices, Malta also has a competitive taxation system. For example, the country offers attractive tax incentives for foreign nationals and business owners, making it an appealing destination for entrepreneurs.

Moreover, Malta’s strategic location in the Mediterranean provides easy access to major European and international markets, making it an excellent base for remote workers, digital nomads, and businesses looking to expand in Europe.

Conclusion

While Eastern European countries may have lower living costs, Malta’s location, climate, and economic advantages make it an appealing choice for many. Additionally, the availability of various business incentives and tax benefits further enhances its attractiveness as a destination for expats.The relatively lower cost of living, combined with the high quality of life, makes Malta an affordable yet desirable place to live in Europe.

At Expatax Malta, we provide professional advice to ensure you have the latest information. Our team of tax consultants can assist you with document preparation and any other requirements you might need, helping to make your move to Malta as smooth as possible.

Sources

Government of Malta – Economy and Statistics

Eurostat – Price Level Index

National Statistics Office of Malta