The Republic of Malta is an island nation located on an archipelago in the center of the Mediterranean Sea, south of Italy, east of Tunisia and north of Libya. In 2004 the country became a member of the European Union. In terms of population and area, it is the smallest EU member state with a population of 519,562 inhabitants. There are two official languages in the country – Maltese and English.
Malta, with its beautiful coasts, rich historical sites and picturesque towns, is not only a tourist destination but also home to a diverse economy. It offers its visitors a rich history and culture, beautiful beaches and friendly people.
If you are considering moving or working in Malta, then today we will follow the economic paths in the country, focusing on minimum and middle wages, professional opportunities and how income is distributed across regions, taxes and the cost of living.
Minimum and average wages
Malta, as a member of the European Union, follows similar wage standards. Malta’s minimum wage in 2023 is 835 euros per month.
The average salary in 2023 is 1,341 euros.
The amount of salary varies depending on the profession. The highest salaries are earned in technology, finance and healthcare, average salaries are earned in services and commerce, and the lowest wages are earned in agriculture and tourism.
Let’s take a look at the salary by profession in different business sectors:
IT – 1 793 €
PR manager – 1 073 €
Teacher – 1 512 €
Accountant – 1 195 €
Human Resources Specialist – 1 085 €
Lawyer – 1 414 €
Cook – 1 451 €
Waiter – 927 €
Sales consultant – 804 €
Masseur – 1 439 €
Hairdresser – 902 €
Driver – 1 073 €
Welder – 1 183 €
Builder – 1 147 €
Income taxes
Malta’s income tax is progressive, which means that people with higher incomes pay higher taxes. The basic rate of tax is 15%. For people with incomes over 40.000 euros, the rate is increased to 25%.
Corporate taxes are also competitive, which attracts businesses and investors.
In Malta, no annual property tax is paid, but a tax of 5% of the value of the property is charged on the purchase of a property, and on sale 8%.
The standard VAT rate in Malta is 18%. Like most countries, this rate varies according to the goods and services concerned.
Reduced rates:
7% for tourism business services (hotels, restaurants and use of sports facilities).
5% for the supply of food, pharmaceuticals, books, printing materials and minor repairs of shoes and leather goods, bicycles, clothing and bed linen; home care services; electricity supply.
0% Some supplies of foodstuffs for human consumption (except for certain processed and pre-prepared foods); prescribed medications; live animals for human consumption; intraCommunity and international transport; domestic passenger transport (excluding road) and food production plants.
Cost of living
If you are considering moving to Malta, the various costs listed below will help you make an informed decision about the costs associated with moving and living in that part of the world.
Let’s start with housing in Malta, which is cheap compared to other European countries. A wide variety of properties for rent or purchase are available, including apartments, maisonettes, country houses and villas.
Cost of housing, rent:
One-bedroom apartment outside the city center: €500.00 – €950.00
Expenditure on food, groceries and restaurants:
Cheap restaurant: €9.75-28.00
Homebrew: €1.50-5.00
Coca-Cola/Pepsi: €1.30-3.00
1L milk: €0.84-1.50
Bread: €0.80-2.00
12 eggs: €1.32-4.00
1 kg chicken fillets: €3.50-10.00
1 kg of beef: €7.50-20.00
1 kg apples: €1.50-4.00
1 kg white rice: €1.20-3.50
For transport:
One-way ticket (local transport): €1.50 – €2.00
Internet:
Epic: €24.99/Month for 2 Gbps
For clothing, personal belongings, fitness and leisure:
Pair of jeans (Levi’s 501 or similar): €25.00 – €120.00
Summer dress: €20.00 – €80.00
Running shoes (sneakers): €50.00 – €120.00
Business shoes: €50.00 – €180.00
Gym membership: €30.00 – €85.00
Cinema ticket: €8.00 – €15.00
Short visit to the doctor (15 minutes): €42
Deodorant: €3.75
Toilet rolls: €3.30
Shampoo: €4.54