Are you thinking of moving to Malta? Malta has become known for its beautiful weather and its tourist-friendly atmosphere. It’s also becoming a popular place to call home thanks to the plethora of residential property available – from gorgeous apartments to palatial country estates and luxurious penthouses, there’s something on offer to suit every budget.
But if you do have fixed employment, a contract and the means to make a deposit on your own property, you could save thousands by opting for a mortgage rather than paying rent and getting nothing in return. Here’s why…
The cost of renting vs. owning
Owning a property in Malta is a great investment as property prices continue to rise. In recent years, the average house price has increased by around 15%. As well as being a sound financial decision, you will get the chance to enjoy some of the most beautiful landscapes and beaches in Europe. Owning your own home also means that you’ll be paying off your mortgage instead of giving money away in rent each month.
In Malta recently, renting has become more expensive. This is because of the high numbers of people who want to rent in Malta. For example, if you are an expat then there is a chance that you may need to move back home for family so cannot be tied into a mortgage. So if you can afford to put a deposit down on a property in Malta then this is a way to get somewhere with a higher value for money.
The cost of utilities
Utility prices in Malta are amongst the cheapest in Europe. The average cost of gas and electricity for a family home is around €400 per year, which works out at about €4.00 per day. This low cost makes it much easier for expats who are looking to save money and make some savings. Of course, this may differ from region to region, so be sure to check with a local supplier before you make any decisions on moving to Malta.
The cost of food
It is difficult to put a figure on the cost of food in Malta, as it varies depending on the type of cuisine and where you are shopping. However, for an average family with two children, a low-cost supermarket may cost around €150 every month – that includes all food such as vegetables, meat, fish and basic household goods.
The high street shops in Malta’s towns can be quite expensive so if you’re looking for something more affordable it’s best not to shop there. In addition, restaurants are pretty costly but if you eat out often it might work out cheaper than cooking at home. So if you’re thinking about making the move to Malta then one of the many benefits will definitely be saving money while still enjoying great quality food.
The cost of healthcare
Maltese people are entitled to free healthcare through the public system, which is also free for children. However, this doesn’t take into account the cost of medication and treatment, which can be costly. The average Maltese person will spend around €200-€250 a month on prescription drugs alone and dental work is not covered. In addition, if you’re looking to get private insurance cover in Malta, it can cost up to €1,000 per year.
This means that if you’re looking for additional insurance cover on top of what Malta offers you could end up spending as much as €2,500 a year. If you’re not employed or in receipt of a pension from abroad then opting for private healthcare may not be an option.
The cost of transportation
In most cases, this will be the most expensive part of the move. The price of flights will vary depending on where you are going, when you are flying and what type of flight you book. For example, a one-way economy class ticket from London Gatwick to Malta can cost anything between £250 and £450 while return tickets in the same category can cost up to £800. On the other hand, if you fly business or first class you could end up paying as little as £240 for a one-way ticket.
Public transport around Malta is known to be reasonably priced but it’s still not something that locals would use every day. To make things even more difficult, local bus timetables are only available online with limited access on public computers, so unless you’re able to rely on the internet abroad, you’ll need to spend time checking routes before purchasing any travel cards.
The cost of entertainment
If you’re looking for more than just a place to live, Malta also provides a variety of things for you and your family to do. If you want to keep up with the latest trends, visit one of the many shopping centres where you can find all the high-street brands and some local designers too. And if sport is more your thing, Malta has it in abundance. So whether it’s tennis or golf, there’s something for everyone when moving to Malta.
The cost of living in Malta vs. other countries
For a single person, the cost of living in Malta is €1,731 per month. If you are a couple with no children and both partners work, it’s €2,263 per month. For a family with two adults and one or two children where one parent stays at home, the cost of living is €3,246 per month.
With these costs in mind, it’s easy to see why so many foreigners are opting for a mortgage instead of paying rent – but it pays to know what you’re getting into before making any decisions.
Talk to an expert
Moving to Malta could save you tens of thousands of pounds over the course of a lifetime. Even if you’re not planning on buying a property in the near future, it’s worth looking into how much an expat package from Malta would cost. The process is surprisingly simple – all you need is a residency permit and proof that you have fixed employment with a contract.
If it sounds like something that might interest you, then contact the experts at RHJ Law today for more information.