Fiscally emigrating to Malta is attractive for many Belgians because of the favorable tax regime, but the total costs are often underestimated. In this article we list the main cost items, without sales talk. From one-off moving costs to recurring expenses and tax obligations. This way you know in advance what to expect.
A move to Malta quickly costs several thousand euros. Count on 3,000 to 6,000 euros for an international mover from an average apartment in Belgium to Malta, depending on volume and whether you choose door-to-door service or transport only. Driving yourself with a trailer is cheaper, but takes more time and involves toll and fuel costs.
In addition, there are administrative costs: registration with the Maltese authorities, applying for an eResidence card and possibly legalizing documents. Count on 200 to 500 euros for these formalities, excluding any translation costs. Those who need a tax residence certificate pay a small fee to the Maltese tax authorities.
Don't forget the costs in Belgium either: deregistration from the population register is free, but closing utility accounts, canceling insurance and arranging your Belgian tax affairs can involve advisory costs. A tax advisor who guides the emigration typically charges 1,500 to 3,500 euros for a complete process.
Rental prices in Malta have risen sharply in recent years. For a two-bedroom apartment in a sought-after area such as Sliema or St. Julian's you quickly pay 1,200 to 2,000 euros per month. In the south or in villages such as Rabat prices are lower, around 800 to 1,200 euros. Those looking for a villa with a pool should count on 3,000 euros or more per month.
Buying is also an option, but property prices are high. An apartment in a tourist zone quickly costs 300,000 to 500,000 euros. On top of that come notary fees (about 2 to 3 percent of the purchase price), stamp duty (5 percent) and possibly estate agent commission. Those who finance through a Maltese bank must take into account a down payment of 20 to 30 percent.
For tax emigrants it is important to know that Malta does not have an annual property tax like in Belgium, but it does have an annual ground rent. However, this is low, often a few hundred euros per year. Those who rent a home can, under certain conditions, deduct part of the rent for tax purposes, depending on the chosen tax system.
The cost of living in Malta is slightly lower than in Belgium, but the difference is smaller than often thought. Groceries are on average 10 to 15 percent cheaper, especially local products. Eating out is relatively affordable: a meal in a simple restaurant costs 15 to 25 euros per person, a cappuccino around 2.50 euros.
Energy is a major expense. Because of the hot summers, air conditioning often runs for months, and electricity rates in Malta are among the highest in Europe. Count on 150 to 250 euros per month for electricity for an 80 square meter apartment in summer, and 80 to 150 euros in winter. Water is relatively cheap, but here too: consumption counts.
Health insurance is mandatory for non-working residents. Basic coverage with a Maltese insurer costs 400 to 800 euros per year, depending on age and coverage. Those entitled to a European health insurance form (S1) can register with the Maltese public healthcare system, but many choose supplementary private insurance for faster access to specialists.
Malta has a progressive income tax rate up to 35 percent, but a more favorable regime often applies to foreign income. Those who opt for the 'remittance basis' system only pay tax on income that is remitted to Malta. Income that remains outside Malta is untaxed, but you must be able to demonstrate that it has not been brought into Malta.
In addition, there is the 'Global Residence Programme' for EU citizens. Under this scheme you pay a fixed amount of 15,000 euros per year in tax on foreign income, regardless of the amount, provided you meet conditions such as a minimum rental or purchase of property and an annual minimum tax. This is interesting for retirees and wealthy individuals with high foreign income.
Those who work or run a business in Malta fall under the normal tax system. Corporate tax is 35 percent, but through the imputation system shareholders can often recover a large part, so the effective tax burden is lower. This is complex and requires professional advice. Tax structures without economic substance are increasingly scrutinized by the Maltese authorities.
Don't forget the Belgian side either: those who emigrate for tax purposes must demonstrate that the center of their interests is in Malta. Otherwise Belgium will continue to levy tax. A correct execution of the emigration, including severing most ties with Belgium, is essential. The cost of a Belgian tax return after emigration is 500 to 1,500 euros per year.
In addition to fixed charges, there are recurring costs such as internet and mobile telephony (30 to 60 euros per month), car insurance (300 to 600 euros per year) and road tax (depending on the type of car, often lower than in Belgium). Those who import a car pay registration costs that can run up to several hundred euros, plus any adjustments to Maltese standards.
Maintenance of a home is more expensive in Malta than in Belgium due to the salty sea air and high humidity. Painting, air conditioning maintenance and plumbing repairs occur more often. Reserve 1 to 2 percent of the property value annually for maintenance.
The costs of traveling back to Belgium also count. A return ticket Brussels-Malta typically costs 100 to 250 euros, depending on the season. Those who regularly visit family must budget for this. In summer prices are higher and early booking is advisable.
Fiscal emigration to Malta is especially interesting for those with high foreign income that largely remains outside Malta, such as dividends, interest or rental income from foreign property. Through the remittance basis system or the Global Residence Programme, the tax burden can drop significantly compared to Belgium.
For those with a modest income or who mainly want to work in Malta, the benefits are smaller. The cost of living and housing can partly offset the tax savings. A detailed custom calculation is needed. Our colleagues at Fiscal emigration to Malta can help you with an initial analysis.
Also compare with other destinations. Fiscal emigration to Cyprus or Fiscal emigration to Portugal can be more advantageous under certain circumstances. Those considering emigrating as a retiree or wealthy individual will find more information on our page about fiscal emigration for retirees and wealthy individuals.
Keep in mind that the Maltese government regularly adjusts the conditions for tax benefits. What applies today may be different in a few years. A flexible structure and periodic advice are therefore recommended.
A single person in Sliema pays 900 to 1,400 euros per month for a one-bedroom apartment. On Gozo that drops to 600 to 900 euros. A couple should budget 400 to 600 euros for supermarket spending, depending on how much you buy locally versus imported products.
Malta is comparable to Brussels or Antwerp for rent in tourist areas, but local products and eating out are cheaper. Those who live in the south or on Gozo clearly keep more money each month.
The Global Residence Programme has a minimum tax of 15,000 euros per year. You must also rent a property from 9,600 euros per year or buy from 275,000 euros. Only those who meet these conditions enjoy the 15 percent rate on remitted foreign income.
Those who work or set up a company pay social contributions. For self-employed people this is 15 to 18 percent of net income, with a weekly minimum contribution. A Maltese company costs 2,000 to 5,000 euros to set up and then 3,000 to 6,000 euros per year for accounting, audit, and filings.
On the Belgian side you pay deregistration costs, notary fees for powers of attorney, and possible tax on property capital gains upon sale. Record these items before you move, otherwise an unexpected invoice will disrupt your first Maltese year.
Practical matters
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