October 13, 2024 • 9 mins
This podcast promotes Malta as an ideal retirement destination for UK citizens, highlighting its numerous benefits. The island boasts a Mediterranean climate with over 300 sunny days, beautiful beaches, and a welcoming culture. It offers a high quality of life with excellent healthcare, education, and a low crime rate. The article also emphasizes the ease of integration for English-speaking expats due to the official language and strong local English proficiency. Furthermore, Malta’s stable economy, low cost of living, and easy travel connections make it an attractive option for those seeking a change of scenery.
This podcast is based on the original YouTube video from the Time2Retire channel at Time2Retire - YouTube
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Okay, so, retirement on the horizon and you're thinking Malta, eh?
(00:09):
Sun, sand, and maybe some seriously old history?
Not a bad plan.
Sounds like someone's been doing their homework.
Well, we've been diving deep into Eric and Tracy's experience, you know, a time to retire
YouTube channel, checking out Malta as a retirement spot.
Right.
It's good to get a first-hand perspective, especially when it comes to something as big
(00:30):
as like relocating for retirement.
Totally.
So we've got their videos, their blog posts, all that good stuff.
What we're doing today is pulling out those golden nuggets, the things that if you're
seriously considering Malta, you absolutely need to know.
Love it.
Let's get into it.
First things first, Malta just screams holiday.
(00:52):
I mean, sunshine like 300 days a year, stunning beaches.
Eric and Tracy were blown away by the blue grotto.
Have you seen pictures?
Oh, incredible.
And the history, don't even get me started.
7,000 years worth of stuff to explore.
Temples older than the pyramids in Egypt.
It's mind blowing.
It's like stepping back in time, but in a good way.
(01:12):
But, okay, let's get real for a sec.
It's one thing to visit, right?
But to actually live there, you need more than just pretty scenery.
Absolutely.
That's where I think Eric and Tracy's experience is so valuable.
They weren't just ticking off tourist traps.
They were really trying to get a feel for what it would be like to integrate into Maltese
society.
How'd that go?
(01:33):
Were they dodging tumbleweeds in a ghost town?
Quite the opposite, actually.
They were blown away by how welcoming everyone was, both locals and expats.
What about the practical stuff?
Things like healthcare, cost of living, you know, the nitty gritty.
Right.
Well, good news on that front too.
Malta's got a really good healthcare system.
Even Eric and Tracy were impressed.
And they're picky.
(01:53):
Plus, it's super affordable, especially compared to the UK.
Music to my ears.
Okay.
So, we've got sun, history, welcoming people, decent healthcare, and it's affordable.
Anything else?
What about, like, actually enjoying yourself there?
Well, they said the food was incredible.
Fresh seafood, amazing produce.
(02:15):
They were going to local markets, trying all sorts of new things.
But their grocery bill was actually lower than back in the UK.
Get out.
That's amazing.
And what did they do with all that extra cash?
Well, it's Malta.
They were out enjoying the Mediterranean lifestyle.
They did boat trips, explored the islands.
Sounds like a dream.
Okay, hold on.
We're forgetting something crucial here.
(02:35):
The whole point of this deep dive, retirement.
Right.
And this is where it gets really interesting.
Malta actually has some pretty sweet tax benefits for retirees, especially those from the UK.
Wait, really?
Tell me more.
What kind of tax benefits are we talking about here?
Well, for one, there's no inheritance tax for spouses or children.
And depending on how you structure things, you could end up paying a lot less in income
(02:58):
tax on your pension.
Way less.
Wow.
Now, that is something to think about.
So we've got the low cost of living, the good healthcare, and now these tax benefits.
It's starting to sound like Malta's ticking all the boxes.
It certainly seems that way, doesn't it?
Yeah.
But, and this is a big but, it's crucial to do your own research.
Talk to financial advisors.
(03:20):
Really understand the ins and outs before making any big decisions.
Absolutely.
This deep dive is just the tip of the iceberg, really.
What we want is to get you thinking, get you asking the right questions.
Exactly.
What speaks to you about Malta is the history, the lifestyle, the financial side of things,
whatever it is, dig deeper.
(03:41):
Do your homework.
All right, sunshine and savings.
Who wouldn't want to retire to a gorgeous island?
Right?
That's what the Malta Retirement Program is advertising, but hmm.
I don't know about you.
Sometimes when something sounds too good to be true.
Well that's what we're here to find out, right?
(04:01):
We're diving deep into this Malta Retirement Program.
We're going to break down the requirements, the costs, all that jazz, and see if it really
lives up to the hype.
Exactly.
Is it really all sun and sangria, or are there some hidden costs?
Let's unpack it.
All right.
So who is this program actually for?
So the good news is it's pretty open.
EU citizens, non-EU citizens, they're all welcome to apply.
(04:24):
However, and it's usually a however, there's this thing called the 75% rule.
Okay, the 75% rule.
What's that all about?
Basically your pension, that sweet, sweet retirement income, needs to be your bread
and butter, at least 75% of your total taxable income.
You can still dabble, maybe freelance a bit, a little side hustle never hurt, but the pension's
(04:46):
got to be the main act.
So you're saying it's for people who are actually retired, not like someone looking
to work remotely from a beach in Malta.
Precisely.
Retired or pretty darn close to it.
And speaking of being in Malta, you got to actually live there, right?
Right, like how much time are we talking about?
Got to be realistic here.
At least 90 days a year.
But here's the catch, can't be out of the country for more than 183 days total.
(05:10):
Basically Malta's got to be your main squeeze, your home base.
Okay, so you can't just like pop in for a few weeks and call it good.
Nope, and it's not just about clocking in those days either.
Remember the whole living there thing.
That means property.
Ah yes, the property situation.
Everyone wants a piece of paradise.
Exactly, and Malta knows it.
They've got some rules, see?
You got to own or rent a place that fits their criteria.
(05:32):
And let me tell you, those costs can vary.
Okay break it down for us.
So if you're thinking about buying Gozo or South Malta, beautiful spots, a bit more laid
back, you're looking at a minimum of 220,000 euros.
220,000, got it.
(05:53):
But for the rest of the island, the more, shall we say, happening areas, that minimum
jumps up to 275,000.
Ah, location, location, location, right.
You got it.
And if renting's more your speed, well, be prepared to shell out between 8,750 euro and
9,600 euros a year.
(06:13):
Again, depending on where you want to be.
So even within Malta, prices vary.
What makes Gozo and South Malta different property wise?
Think of it this way.
They're like the quieter cousins.
Less hustle and bustle, which let's be honest, many retirees find appealing.
Nice and quiet sounds nice, especially in retirement.
Right.
And that tranquil vibe, it plays into property values too.
(06:36):
Now ready for the main course.
Let's talk taxes, baby.
That's what everyone's really here for, right?
You said it.
Malta's rolling out the red carpet with this flat 15% tax on foreign income and pensions
for those in the program.
That's significantly less than a lot of other places.
Music to a retiree's ears.
But hold on, 15% sounds almost too good to be true.
(06:56):
There's got to be a catch, right?
Well there's always a but somewhere.
There's a minimum tax payment you got to make 7,500 euro annually.
Oh, and for each dependent you bring along, tack on an extra 500 euro.
OK, so there are some extra costs to factor in.
And you mentioned foreign income.
That 15% doesn't apply to everything, does it?
Good catch.
(07:17):
Income earned within Malta, that's taxed differently, more around 35%.
They're really encouraging retirees to bring their established income, like those pensions
we talked about, to boost their economy, not compete for jobs with the locals.
Interesting strategy.
But what about someone who's still working remotely?
They wouldn't qualify for this retirement program, right?
Right.
(07:37):
For them, there's the digital nomad visa.
Different program, different rules.
OK, so Malta's got options.
But let's be real, paradise isn't always perfect.
What about the other stuff, the nitty gritty that retirees need to consider?
Absolutely, you've got to look beyond the brochures, right?
Health care, that's a big one.
Malta's got a decent system, but it might not be what you're used to.
They have public health care, but lots of folks also use private insurance, especially
(08:00):
if they need something specific.
Really important to do your research there.
So don't assume your current insurance will cover you in Malta.
Exactly.
Check how the system works, the costs, all of it.
And speaking of costs.
Cost of living, can't forget about that.
Right.
That tax break is sweet, but how far will your money actually go?
Groceries, transportation, all those everyday things, they add up.
(08:21):
So true.
Don't get blinded by the tax benefits.
The overall cost of living matters too.
And finally, culture shock, or should I say culture adjustment.
It's real.
Malta's got a rich history, vibrant culture, but moving to a new country, well, it takes
some getting used to.
(08:42):
My advice, connect with other expats.
Those who've been there, done that.
They can be lifesavers, believe me.
It's a huge decision.
Retirement, this whole moving to another country thing.
No doubt about it.
It's not just about finances.
It's about finding that place where you feel at home, where you can really embrace this
chapter of your life.
So is Malta calling your name?
We've given you the lowdown, the good, the bad, and the, it depends.
(09:05):
Now it's your turn to ask, what does my dream retirement look like?
Could Malta be the answer?
Maybe.
Maybe not, but that's for you to decide.
Until next time, happy retirement planning.
Okay, so, retirement on the horizon and you're thinking Malta, eh?
(00:09):
Sun, sand, and maybe some seriously old history?
Not a bad plan.
Sounds like someone's been doing their homework.
Well, we've been diving deep into Eric and Tracy's experience, you know, a time to retire
YouTube channel, checking out Malta as a retirement spot.
Right.
It's good to get a first-hand perspective, especially when it comes to something as big
(00:30):
as like relocating for retirement.
Totally.
So we've got their videos, their blog posts, all that good stuff.
What we're doing today is pulling out those golden nuggets, the things that if you're
seriously considering Malta, you absolutely need to know.
Love it.
Let's get into it.
First things first, Malta just screams holiday.
(00:52):
I mean, sunshine like 300 days a year, stunning beaches.
Eric and Tracy were blown away by the blue grotto.
Have you seen pictures?
Oh, incredible.
And the history, don't even get me started.
7,000 years worth of stuff to explore.
Temples older than the pyramids in Egypt.
It's mind blowing.
It's like stepping back in time, but in a good way.
(01:12):
But, okay, let's get real for a sec.
It's one thing to visit, right?
But to actually live there, you need more than just pretty scenery.
Absolutely.
That's where I think Eric and Tracy's experience is so valuable.
They weren't just ticking off tourist traps.
They were really trying to get a feel for what it would be like to integrate into Maltese
society.
How'd that go?
(01:33):
Were they dodging tumbleweeds in a ghost town?
Quite the opposite, actually.
They were blown away by how welcoming everyone was, both locals and expats.
What about the practical stuff?
Things like healthcare, cost of living, you know, the nitty gritty.
Right.
Well, good news on that front too.
Malta's got a really good healthcare system.
Even Eric and Tracy were impressed.
And they're picky.
(01:53):
Plus, it's super affordable, especially compared to the UK.
Music to my ears.
Okay.
So, we've got sun, history, welcoming people, decent healthcare, and it's affordable.
Anything else?
What about, like, actually enjoying yourself there?
Well, they said the food was incredible.
Fresh seafood, amazing produce.
(02:15):
They were going to local markets, trying all sorts of new things.
But their grocery bill was actually lower than back in the UK.
Get out.
That's amazing.
And what did they do with all that extra cash?
Well, it's Malta.
They were out enjoying the Mediterranean lifestyle.
They did boat trips, explored the islands.
Sounds like a dream.
Okay, hold on.
We're forgetting something crucial here.
(02:35):
The whole point of this deep dive, retirement.
Right.
And this is where it gets really interesting.
Malta actually has some pretty sweet tax benefits for retirees, especially those from the UK.
Wait, really?
Tell me more.
What kind of tax benefits are we talking about here?
Well, for one, there's no inheritance tax for spouses or children.
And depending on how you structure things, you could end up paying a lot less in income
(02:58):
tax on your pension.
Way less.
Wow.
Now, that is something to think about.
So we've got the low cost of living, the good healthcare, and now these tax benefits.
It's starting to sound like Malta's ticking all the boxes.
It certainly seems that way, doesn't it?
Yeah.
But, and this is a big but, it's crucial to do your own research.
Talk to financial advisors.
(03:20):
Really understand the ins and outs before making any big decisions.
Absolutely.
This deep dive is just the tip of the iceberg, really.
What we want is to get you thinking, get you asking the right questions.
Exactly.
What speaks to you about Malta is the history, the lifestyle, the financial side of things,
whatever it is, dig deeper.
(03:41):
Do your homework.
All right, sunshine and savings.
Who wouldn't want to retire to a gorgeous island?
Right?
That's what the Malta Retirement Program is advertising, but hmm.
I don't know about you.
Sometimes when something sounds too good to be true.
Well that's what we're here to find out, right?
(04:01):
We're diving deep into this Malta Retirement Program.
We're going to break down the requirements, the costs, all that jazz, and see if it really
lives up to the hype.
Exactly.
Is it really all sun and sangria, or are there some hidden costs?
Let's unpack it.
All right.
So who is this program actually for?
So the good news is it's pretty open.
EU citizens, non-EU citizens, they're all welcome to apply.
(04:24):
However, and it's usually a however, there's this thing called the 75% rule.
Okay, the 75% rule.
What's that all about?
Basically your pension, that sweet, sweet retirement income, needs to be your bread
and butter, at least 75% of your total taxable income.
You can still dabble, maybe freelance a bit, a little side hustle never hurt, but the pension's
(04:46):
got to be the main act.
So you're saying it's for people who are actually retired, not like someone looking
to work remotely from a beach in Malta.
Precisely.
Retired or pretty darn close to it.
And speaking of being in Malta, you got to actually live there, right?
Right, like how much time are we talking about?
Got to be realistic here.
At least 90 days a year.
But here's the catch, can't be out of the country for more than 183 days total.
(05:10):
Basically Malta's got to be your main squeeze, your home base.
Okay, so you can't just like pop in for a few weeks and call it good.
Nope, and it's not just about clocking in those days either.
Remember the whole living there thing.
That means property.
Ah yes, the property situation.
Everyone wants a piece of paradise.
Exactly, and Malta knows it.
They've got some rules, see?
You got to own or rent a place that fits their criteria.
(05:32):
And let me tell you, those costs can vary.
Okay break it down for us.
So if you're thinking about buying Gozo or South Malta, beautiful spots, a bit more laid
back, you're looking at a minimum of 220,000 euros.
220,000, got it.
(05:53):
But for the rest of the island, the more, shall we say, happening areas, that minimum
jumps up to 275,000.
Ah, location, location, location, right.
You got it.
And if renting's more your speed, well, be prepared to shell out between 8,750 euro and
9,600 euros a year.
(06:13):
Again, depending on where you want to be.
So even within Malta, prices vary.
What makes Gozo and South Malta different property wise?
Think of it this way.
They're like the quieter cousins.
Less hustle and bustle, which let's be honest, many retirees find appealing.
Nice and quiet sounds nice, especially in retirement.
Right.
And that tranquil vibe, it plays into property values too.
(06:36):
Now ready for the main course.
Let's talk taxes, baby.
That's what everyone's really here for, right?
You said it.
Malta's rolling out the red carpet with this flat 15% tax on foreign income and pensions
for those in the program.
That's significantly less than a lot of other places.
Music to a retiree's ears.
But hold on, 15% sounds almost too good to be true.
(06:56):
There's got to be a catch, right?
Well there's always a but somewhere.
There's a minimum tax payment you got to make 7,500 euro annually.
Oh, and for each dependent you bring along, tack on an extra 500 euro.
OK, so there are some extra costs to factor in.
And you mentioned foreign income.
That 15% doesn't apply to everything, does it?
Good catch.
(07:17):
Income earned within Malta, that's taxed differently, more around 35%.
They're really encouraging retirees to bring their established income, like those pensions
we talked about, to boost their economy, not compete for jobs with the locals.
Interesting strategy.
But what about someone who's still working remotely?
They wouldn't qualify for this retirement program, right?
Right.
(07:37):
For them, there's the digital nomad visa.
Different program, different rules.
OK, so Malta's got options.
But let's be real, paradise isn't always perfect.
What about the other stuff, the nitty gritty that retirees need to consider?
Absolutely, you've got to look beyond the brochures, right?
Health care, that's a big one.
Malta's got a decent system, but it might not be what you're used to.
They have public health care, but lots of folks also use private insurance, especially
(08:00):
if they need something specific.
Really important to do your research there.
So don't assume your current insurance will cover you in Malta.
Exactly.
Check how the system works, the costs, all of it.
And speaking of costs.
Cost of living, can't forget about that.
Right.
That tax break is sweet, but how far will your money actually go?
Groceries, transportation, all those everyday things, they add up.
(08:21):
So true.
Don't get blinded by the tax benefits.
The overall cost of living matters too.
And finally, culture shock, or should I say culture adjustment.
It's real.
Malta's got a rich history, vibrant culture, but moving to a new country, well, it takes
some getting used to.
(08:42):
My advice, connect with other expats.
Those who've been there, done that.
They can be lifesavers, believe me.
It's a huge decision.
Retirement, this whole moving to another country thing.
No doubt about it.
It's not just about finances.
It's about finding that place where you feel at home, where you can really embrace this
chapter of your life.
So is Malta calling your name?
We've given you the lowdown, the good, the bad, and the, it depends.
(09:05):
Now it's your turn to ask, what does my dream retirement look like?
Could Malta be the answer?
Maybe.
Maybe not, but that's for you to decide.
Until next time, happy retirement planning.
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