A cost-of-living article usually starts with a long list of prices. We will not do that, because a price list copied from an unofficial site is out of date by the time you read it. What we can give you is the set of figures that are fixed by law or published by the authorities, and a method for the rest. Cost of living in Malta is largely a housing story, and the rest of your budget depends on how you work and whether you drive.
Is the cost of living in Malta high?
Housing is the pressure point. The property price index published by law rose by 6.7% on 1 April 2026, to 287.89, and rents follow the market, which the law leaves free. Whether the island suits your budget therefore depends on whether you earn a Maltese salary or a foreign one, and on how much of it goes to rent.
The point of this article is to give you reliable anchors. For rent levels in specific towns, look at current listings and compare several neighbourhoods; our guide to the best places to live in Malta helps you choose where to look.
What are wages and salaries like in Malta?
The legal floor is the national minimum wage. For 2026 it is €229.44 gross per week for a 40-hour week at age 18 and over (€222.66 at 17 and €219.82 under 17), under the national standard order S.L. 452.139 in force since 1 January 2026. The annual cost-of-living adjustment is mandatory for every employee, and some sectors have higher minimums set by wage regulation orders. The DIER FAQ still shows the 2025 amounts (€221.78 at 18 and over), so rely on the legal text for 2026.
On top of that, employees receive two statutory bonuses of €135.10 each (end of June and mid-December) and two weekly allowances of €121.16 each (end of March and end of September), pro-rated in the first year. These amounts come from the DIER; confirm them with your employer for 2026. Pay must reach you at least every four weeks, and paid leave in 2026 is 216 hours for a 40-hour week. Our article on working in Malta goes through contracts, notice and unemployment benefit.
How much of your pay goes to tax once you live here?
The cost of living in Malta includes tax, so put it in your budget from the start. Salaries are quoted gross.
Income tax is progressive and, for 2026 incomes, starts with a 0% band. A single person pays nothing up to €12,000, then 15% from €12,001 to €16,000, 25% from €16,001 to €60,000 and 35% above that. A married couple's 0% band goes to €15,000; parents and families with children have their own scales. The MTCA's method is: taxable income times the band's rate, minus a fixed deduction. The MTCA publishes the fixed deduction for each band in its table of rates for individuals, so you can run your own figures there.
Social security contributions are paid in addition, as a share of your pay for employees and as weekly class 2 amounts for the self-employed. For 2026 the class 2 minimum is €36.18 a week for net annual income between €910 and €12,543.72. The numbers you need to be registered are in social security and tax numbers in Malta, and the MTCA explains residence, domicile and the special schemes.
What does housing cost, and what protects you?
Rent is free to negotiate, but the rules around it are strict, and they are your budget protection:
- advance rent cannot exceed one month;
- the deposit amount must be written in the contract (no legal cap);
- no rent increase in year one, then one a year at most and no more than 5%;
- the landlord pays the €10 registration fee;
- water and electricity must reflect your actual use, not a flat fee.
If your income is modest and your lease is registered for at least six months, the Housing Authority's rent subsidy can help: for a single person with income up to €21,900 the maximum aid is €4,200 a year in the 2026 scale. Details are in renting in Malta. If you buy, stamp duty is 5%, with relief for a main residence and a first purchase; see buying property in Malta.
What about the car, health and school?
A car is the budget item that surprises people. Beyond the purchase price, you pay registration tax (based on market value), €55 for inspection, €15 for registration, an annual road licence (for a petrol car, from €100 a year in the lowest emission bracket, rising with emissions and age to €1,125), third-party insurance and a roadworthiness test of €30.27. See driving in Malta.
Healthcare in the public system is free if you are covered, but medicines after discharge and most dentistry are not (see healthcare in Malta for expats). State and Church schools charge no tuition for EU children, while independent schools do, with a tax deduction up to €6,500 per child at secondary level in the 2026 assessment year (see schools in Malta for expats). The Free Childcare Scheme covers approved childcare for working parents.
What does a Maltese salary look like against these costs?
Take the minimum wage as a floor: €229.44 gross per week for a full-time job in 2026. Add the two statutory bonuses and the two weekly allowances described above, and the picture is a modest income on which the cost of housing weighs heavily. That is why the rent rules and the rent subsidy matter so much for people on lower pay. At higher salaries, the progressive scale takes a larger share, but the first €12,000 of a single person's income is taxed at 0%, which softens the bite.
Salaries above the minimum depend on sector and experience, and no official figure sums them up for expats, so we leave them out rather than guess. Ask employers for the full package: base salary, bonuses, allowances, health cover and leave. And remember that moving from a foreign salary to a Maltese one changes how the tax works: a salary paid by a Maltese employer is taxed under the normal scale, while foreign income may be treated differently if you are not domiciled.
How does the cost of living in Malta change between Malta and Gozo?
The law is the same on both islands, but the market differs. Some buyers choose Gozo for lower property thresholds in the residence tax schemes (€220,000 to buy, €8,750 a year to rent, against €275,000 and €9,600 in most of Malta), and for a calmer life. The trade-off is the ferry, which adds time and cost to commuting, and a smaller range of jobs and shops. Our guide to living in Gozo goes through the trade-offs.
How do you build your own monthly budget?
Take a blank page and fill it in this order: rent and deposit, then utilities (get quotes by asking the landlord for the previous bills), then transport (bus, ferry or car with all its recurring costs), then food, then health and insurance, then school or childcare, then taxes and contributions. Fix the first three with real quotes, the next ones with a week of shopping, and add a buffer for summer cooling. For the cost of food, eating out and utilities, we do not publish a number because we have no official source; check the national statistics office and your own receipts after the first month.
One more point: the first months cost more than the following ones. Count the deposit, the first month's rent, the sworn translations, the car registration if you bring one, and any gap before your first payslip.