Germany is a beautiful country with some stunning locations, a rich history and has the biggest economy in the EU block and the 4th largest GDP in the world. Even with the country being the powerhouse of Europe, many Germans are moving to other EU countries like Malta for several reasons such as the warm climate, the lifestyle, ease of language, investment, the favourable tax system, affordable healthcare and much more.
Top of the list when it comes to countries for relocation for Germans is Switzerland and Austria for those who do not speak English and wish to retain many of their familiar customs, but warmer EU countries such as Spain, Italy and Malta are also very popular relocation destinations.
With current world events and internal policies affecting daily life in Germany, many of the country’s citizens are looking at relocating elsewhere in order to have access to a better quality of life and stretch their Euros further. According to https://deregistration.de/emigrating-from-germany/ and Statista, the number of people who emigrate from Germany to elsewhere in the world has doubled in the last 20 years with the latest figure available, standing at just over 994,000 for 2021.
Germans along with Austrians have one of the highest tax rates related to income and this especially affects single people. For 2023, German personal income tax rates are anywhere from 14% to 45% with additional solidarity and church tax on top of that. This makes Malta very attractive as a relocation destination because Malta offers many tailor-made tax incentives, not only for those in employment but also for anyone interested in starting a business. In Malta the tax on personal income ranges from 0% to 35% but the 35% tax rate is only reached when annual income is in excess of EUR 60,000.
In Germany the rising annual inflation means pensioners can buy less from year to year, so increasing numbers of pensioners move to Malta, transferring their pensions abroad. Malta offers a low cost of living and a high quality of life meaning that every Euro goes a lot further. Malta is very affordable when it comes to food, transportation and even rental housing. Although renting a property in Malta’s cosmopolitan urban areas is comparable to that of Germany, some locations such as those that can be found on the adjacent island of Gozo are extremely affordable, starting at just €550 per month for a modern, two-bedroom, fully-furnished apartment!
According to Numbeo, you would need around €4,604 in Berlin to maintain the same standard of life that you can have with €3,900 in Sliema (assuming you rent a place to live in both destinations). We look at some of the price indices:
Malta enjoys a temperate climate as there are no mountains and it seldom bears the brunt of the cold Atlantic fronts that can make Germany’s weather so much cooler and unpredictable. Malta does not have any snow during winter and enjoys more than 300 days of sunshine a year, making the islands irresistible to any German sun seekers. Experiencing miserable weather for a better part of the year is one of the major reasons German expats move to sunnier countries, as the added benefit is that their overall health and discomfort also improve in warmer climates.
Malta has a vibrant and dynamic economy, offering many opportunities for both businesses and individuals. In the last few years, Malta has become a hub for i-Gaming companies (the biggest in Europe) and it has a favourable tax regime which is very attractive to all types of foreign investment. If you are an entrepreneur looking to expand, relocate or establish a business, Malta is an excellent investment destination to consider.
Malta is well-known for its excellent public and private healthcare systems. It has ultra-modern facilities and highly skilled medical professionals. The public healthcare system is free to all EU citizens and also to any residents that are in employment. Affordable private healthcare options are available for those who want fast access to medical services.
Maltese and English are the official languages of Malta and this makes it very easy for German expats to communicate and integrate with the local community. Germans also love the passionate way of living life in Malta as opposed to the more reserved nature that prevails in most of German society.
Malta offers a safe and secure environment for individuals and families alike and violent crime is seldom heard of. Malta has also been chosen to host EuroPride from 7-17 September 2023 as it has consistently been regarded as one of the most progressive and safe places in the world for the global LGBTQ+ community. For many Germans living in a host country and automatically being part of a minority leads to a better understanding of people in the same situation in their homeland, leading to a better life for everyone.
Careers in IT and i-Gaming has resulted in many Germans making Malta their home, as Malta is the EU’s leading hub when it comes to technology and online gaming.
Malta is within easy travelling reach of Germany, making it easy for German expats to visit family or fly for business reasons to its major cities. In return Malta is no more than two and a half hours of flight time to all major European cities such as Paris, London, Barcelona, Rome and Milan from Luqa International Airport. Due to its location, Malta is perfectly situated as a hub between Europe, North Africa and the Middle East which is great for doing business.
Being at the crossroads of major continents and having been occupied by many nations over the millennia, Malta has a unique character and culture, unlike anything else in Europe. Influences on the region’s culture, cuisine and language can be traced to Germany, Spain, France, North Africa and even the Middle East. Malta is thus the perfect melting pot and a fusion hotspot.
In Germany a weak economic environment and high interest rates will remain the biggest challenges to face according to www.cbre.de. This will also have an impact on the German residential investment market. Although inflation may have slowed, it was still running at 8.6% at the end of 2022 with a rise in the cost of living and high energy and financing costs weighing down growth. It is anticipated that in 2023 there will be a mild economic recession in Germany and a GDP progression rate of -0.7% but this is considered preventable.
In contrast, Malta’s real estate market is driven by strong demand and a positive economic outlook and during the third quarter of 2022 the property price index rose by 5.2% (1.8% inflation adjusted) with continued year-on-year increases.
When looking at the economy of Malta, it is expected that it will grow by a healthy 5.7% this year according to the European Commission with the IMF putting it even higher at 6.2%. It is therefore no wonder that many German citizens cross the border in order to pursue a more prosperous life in Malta.