Cost of Living


Portugal is more affordable than Malta overall. According to Numbeo's cost of living index for mid-2022, Lisbon, Portugal ranks 50th globally while Malta ranks 109th. The cost of living overall is 17.9% higher in Malta compared to Portugal. But some things there are cheaper.

Some key differences in cost of living expenses:


Housing


Rent

Rents in Malta are 0.6% lower than in Portugal. Rental prices tend to be higher in the most desirable expat areas like Sliema, St. Julians, and Central Valletta. Expect to pay around €789-€949 for a one bedroom apartment and €1,231-€1,625 for a 2-3 bedroom unit.

Portugal rents are slightly higher, averaging €955-€734 per month for a one bedroom and €1,229-€1,702 for a 2-3 bedroom apartment in the capital Lisbon. Similar rent differences are seen in other cities.


Purchase

Malta is densely populated, so property is limited and prices are high, averaging €3,600+ per square meter in central locations. If you’re interested in property for sale in Malta, speak to an experienced real estate agent for the latest prices and best areas to purchase.

Portugal has slightly more affordable real estate, with prices as low as €3,439 per square meter in city centres cities like Lisbon, Porto, and Lagos. Outside of prime tourist areas, prices can be even lower.


Groceries


Supermarket prices including meats, produce, and packaged goods are around 16.6% higher in Malta compared to Portugal. Staples like milk, rice, eggs, and some meats are cheaper in Portugal, but other essentials, such as bread and cheese, are more expensive.


Eating Out


Eating out is a lot cheaper in Portugal. The country is much bigger so there are far more restaurants to choose from. For an inexpensive meal, expect to pay around €10 in Portugal, compared to €15 in Malta. A three-course meal for two at a mid-range restaurant could cost around €70 in Malta and €40 in Portugal.

An overall food budget including groceries and dining out is higher in Malta compared to Portugal.

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Healthcare


Both Malta and Portugal have decent healthcare systems, but Portugal is ranked higher for the skill of its medical staff, accuracy of modern diagnosis and treatment, and more. One thing that lets Malta down is the long waiting times in medical institutions.

Malta's private insurance is very expensive for expats without employer coverage. In Portugal, private healthcare is more affordable.


Utilities


Electricity, heating, and water bills run around 21.5% higher in Portugal. Internet costs are also higher, costing around 30 Euros per month in Malta compared to 38 Euros per month in Portugal.


Transportation


Fuel is cheaper in Malta, around €1.34/litre versus €1.69 in Portugal. Public transport is affordable in both countries, but monthly passes are more expensive in Portugal. Owning a car has lower associated costs in Malta.


Taxes


Malta can be a very tax advantageous country for high net worth individuals who can buy into special residency and citizenship schemes.

In Malta, income tax rates range from 0% to 35%. There are schemes that cap tax rates for very high incomes. If you earn more than 60,001 Euros, you’ll pay 35% tax. Income is tax-free up to 12,700 Euros.

Portugal offers a 10 year Non-Habitual Resident tax scheme where foreign-sourced income is exempt from Portuguese income tax. Income earned in Portugal enjoys a reduced tax rate. This scheme has helped attract many digital nomads and retirees.

The benefits can outweigh the costs in Malta for ultra wealthy individuals, but Portugal offers better tax treatment for the average expat.

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Visas and Residency


Malta and Portugal both allow simplified residency schemes for EU and non-EU citizens:


EU Citizens

As EU members, Malta and Portugal allow EU citizens to move and reside without a visa. Just register your residence within 3 months of arrival.


Non-EU Citizens

Malta Permanent Residence Programme: There are two ways to qualify via this scheme. One involves making a government contribution of 98,000 Euros, a charitable donation of 2,000 Euros, and renting a property for five years. The other involves lesser financial contributions but a property purchase worth at least 300,000 Euros.

The D7 Passive Income Visa for Portugal allows non-EU citizens to gain temporary residence without a major investment, provided they have stable annual passive income exceeding €8,460 per year (plus additional funds). Income can be from foreign pensions, investments, remote work, etc.


Lifestyle Factors


Malta:

  • Languages: Maltese and English are the official languages. Over 90% speak English but Maltese is important culturally.
  • Climate: Mediterranean climate has mild rainy winters and hot dry summers. Average highs of 15°C in winter to over 30°C in summer.
  • Scenery: Malta is an archipelago with three main islands. Coastlines are dominant with fortified cities like Valletta built on cliffs. There are limited green spaces.
  • Activities and culture: Malta is renowned for history, with ancient temple sites and Baroque architecture. Activities include beaches, sailing, scuba diving, and exploring sites like the medieval citadel Gozo. Vibrant festivals year-round.
  • Downsides: High population density, especially on the main island. Busy roads and crowded beaches in peak season.


Portugal:

  • Language: Portuguese is the sole official language. English is less widely spoken than in Malta.
  • Climate: The climate is mild year-round in the south with cooler and rainier winters in the north.
  • Scenery: Diverse landscapes including coastline, mountains like the Serra da Estrela, green hills dotted with Quintas (farm estates), and historic towns like Sintra and Coimbra.
  • Activities: miles of beaches for surfing and water sports, golf, hiking, Port wine region, and historic sites like the Jerónimos Monastery. Rich cultural traditions around food, music (fado), festivals.
  • Downsides: Bureaucracy can be slow. Public transit is limited outside cities. There are language barriers for monolingual expats.


Both destinations offer amazing Mediterranean lifestyles. Portugal's larger size gives it more diverse landscapes while Malta can feel crowded but offers deep history.

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Jobs and Business


Malta has a thriving and robust economy with low unemployment around 3%, making it relatively easy to find work. It’s very dependent on foreign trade, but top industries include:

  • Tourism - hotels, restaurants, attractions.
  • iGaming - Malta is a hub for online gaming companies.
  • Financial services and banking.
  • Aviation - large aircraft maintenance and registration sector.
  • Maritime - shipping and logistics companies based in the ports.
  • Manufacturing - pharmaceuticals, electronics, plastics.

While English is widely used in business, Maltese language requirements can pose barriers for some work permits and jobs.

Portugal has around a 6.58% unemployment rate. Top industries include:

  • Tourism - especially in the Algarve coastal region
  • Manufacturing
  • Textiles
  • Technology
  • Telecommunications

The decision of whether to move to Portugal or Malta is a complex one. Take advice from experts like real estate agents, recruitment agents, lawyers, and accountants before making your decision.