Embracing Mediterranean Tranquillity: Why UK Retirees Are Retiring in Malta

For many UK retirees, the idea of retiring in Malta has gained significant traction in recent years for several reasons. With the pandemic forcing many people to leave their jobs or adapt to a very different working environment, many older workers took this as a time to go into early retirement, leading to the “Great Retirement Boom”. However, the rising cost of living is now becoming a major issue for UK retirees and some are even looking to head back into the workforce.?

For these reasons, many UK retirees are looking to Malta as an alternative country to retire in. Nestled in the heart of the Mediterranean, Malta offers an alluring combination of idyllic landscapes, favourable tax benefits, and a welcoming atmosphere. Let’s look closer at some reasons why UK retirees might find retiring in Malta an enticing prospect.

1. Mediterranean Paradise

Malta, a stunning archipelago, boasts a Mediterranean climate that will appeal to sun-seeking retirees. The UK is infamous for its rainy and cloudy climate, so this change in climate could be a warm welcome for retirees looking for a sunny place to live. With over 300 days of sunshine annually, the islands offer a consistently warm and mild climate, providing ample opportunities to bask in the sun and enjoy outdoor activities year-round. The allure of clear blue waters, picturesque beaches, and charming coastal towns also create an inviting backdrop for a relaxed retirement lifestyle.

2. English Language and Expat Community

One of the most compelling reasons for UK retirees to consider Malta is the widespread use of English. While locals do speak Maltese, English is one of the country’s official languages and many locals can speak both languages, making communication easy. This linguistic advantage significantly eases the transition for those relocating from the UK, as they will not have to learn a whole new language. Furthermore, there is a large expatriate community in Malta, which can further enhance the sense of familiarity. Retirees can find many opportunities for socialising, making friends, and sharing experiences with fellow Britons.

3. Affordable Cost of Living

Amidst a post-pandemic economy and due to the effects of the Ukraine war, the cost of food and energy has been rapidly rising, leading to a steeper cost of living in the UK. Many retirees were not prepared for this increase in the cost of living when they decided to retire and now are struggling to make ends meet. Malta offers a more affordable alternative without compromising on quality of life. Housing costs, including rent and property prices, are generally lower in Malta than in many parts of the UK. Additionally, daily expenses such as groceries, dining out, and transportation are relatively reasonable, making it an attractive destination for retirees seeking a comfortable retirement without financial strain.

4. Favourable Taxation

Malta's tax incentives are a considerable draw for UK retirees. To enjoy the country’s attractive tax incentives, you will need to receive pension income in Malta and this must constitute at least 75% of your taxable income. This feature can lead to significant savings for retirees with pensions or other sources of income, such as investments, that come from the UK. There are however some minimum tax obligations that people should take note of, such as a yearly minimum tax payment of €7,500. It's important to consult a financial advisor with expertise in international taxation to ensure a smooth transition and optimal tax planning.

5. Accessible Healthcare

Retirement often comes with health considerations and retirees may be concerned that the healthcare system is not as accessible as it is in the UK. However, Malta does boast a well-developed healthcare system that provides quality medical services. The country also has reciprocal healthcare agreements with the UK, meaning that retirees can access medical care from the Maltese healthcare system. Retirees will need to have a private health or EU Health insurance policy to enjoy these benefits.?

6. Proximity and Connectivity to the UK

Despite the physical separation by water, Malta's strategic location in the Mediterranean places means it is just a few hours' flight away from major UK airports. This convenient proximity allows retirees to maintain strong ties with family and friends back home, facilitating frequent visits and ensuring a seamless transition to their new Mediterranean lifestyle.

Furthermore, Malta's geographical location has long made it a pivotal hub for international travel and trade. Malta International Airport, the main gateway, boasts an extensive network of flights connecting it to major cities across Europe, including the UK. The availability of direct flights means that retirees can easily travel between the two countries, and even explore other European destinations for a quick getaway.?

Consider Retiring in Malta

Retiring in Malta from the UK presents an appealing proposition for those seeking a change of scenery and a more affordable lifestyle. From its sun-kissed beaches to its favourable tax benefits and English-speaking community, Malta offers a well-rounded retirement experience. As you contemplate your retirement plans, consider the allure of Malta and the fulfilling opportunities it holds for a new chapter in life.?

Before making any decisions, it's advisable to conduct thorough research, seek professional advice, and embark on your retirement journey fully informed and prepared. There are a few considerations that you need to take note of before deciding to make the move. For example, retirees will need to ensure that they are not employed in Malta. However, they may hold non-executive posts on the board of a Maltese company and partake in certain activities, such as philanthropic activities.?

Here at Papilio Services, we can arrange a free residency planning consultation with our expert team to help start your application process for the Malta Retirement Programme. Reach out to us today to learn more about retiring in Malta!?