A comfortable retirement works out cheaper in Montenegro — around £1,800/month for a couple, versus £2,200 in Malta (about 18% more).
Cost of living, side by side
| Malta | Montenegro | |
|---|---|---|
| Modest (couple/mo) | £1,600 | £1,300 |
| Comfortable (couple/mo) | £2,200 | £1,800 |
| Premium (couple/mo) | £3,300 | £2,750 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Malta: Foreigners can buy freehold, but non-residents (and non-EU buyers) usually need an Acquisition of Immovable Property (AIP) permit, which typically limits them to a single home for personal use. In designated Special Designated Areas (SDAs), foreigners can buy multiple properties with no such restriction.
Montenegro: Foreigners can own residential and commercial property freehold on the same terms as citizens; the principal exception is agricultural and forest land, which must be held through a locally registered company.
Malta: Non-EU retirees can apply under the Malta Retirement Programme (age 55+, in receipt of a pension) or the Malta Permanent Residence Programme; both require a qualifying property purchase or rental, health insurance and evidence of stable income.
Montenegro: A temporary residence permit can be based on property ownership (since 2026 the home generally needs a tax-assessed value of at least €150,000), employment or family ties; permits run for a year, are renewable, and require health insurance.
Malta: Malta's public health service is good and free at the point of use for those enrolled, and UK state pensioners can register an S1 so the UK funds their care; English is the language of medicine, which makes it easy to navigate. Many expats add affordable private cover for shorter waits.
Montenegro: Public healthcare is modest, so most expats use private clinics locally or travel to nearby Croatia or Serbia for bigger procedures; private insurance and treatment are relatively inexpensive. Facilities are best around Podgorica and the coast.
Malta: Malta taxes residents on a remittance basis, so foreign income kept offshore is not taxed; the Malta Retirement Programme offers a flat 15% on pension income remitted to Malta, with a minimum tax of about EUR 7,500 a year, provided you remit most of your pension there. Take advice on which basis suits you.
Montenegro: Montenegro taxes residents' income, including foreign pensions, on a low progressive scale, nothing on roughly the first EUR 700 a month, then 9% and 15% above that, so a typical pension faces only a modest effective rate. It uses the euro despite being outside the EU.
Malta: Classic Mediterranean, with hot dry summers and mild wet winters, and more sunshine than almost anywhere in Europe. Spring and autumn are gloriously warm. Very safe, English-speaking and familiar to Britons, and unusually for the Mediterranean they drive on the left, so the roads feel immediately natural to UK retirees.
Montenegro: A warm Mediterranean coast with hot summers and mild winters, backed by mountains that are cold and snowy in winter. Late spring and early autumn are ideal on the coast. Montenegro is safe and laid-back; they drive on the right, English is widely spoken among younger people and in the tourist towns, and its small size makes it easy to get around.
Malta: One-off costs run around 6-7%: stamp duty of 5% (some reliefs may apply), plus notary fees of about 1-2% and agency commission. Non-EU buyers usually need an AIP permit for a home outside the special designated areas, and completion takes two to three months.
Montenegro: Buyers pay a 3% property transfer tax on resale homes (new-builds include 21% VAT instead), plus legal and agency fees of a few percent, and the process is fairly quick. Note that residence can be based on owning a home assessed at EUR 150,000 or more.
Malta: Sliema and St Julian's for a lively seafront with every amenity; the historic Mdina and the Three Cities for character; and Gozo for a slower, greener island pace.
Montenegro: Kotor and its dramatic bay for scenery and history; Tivat for the smart Porto Montenegro marina; Budva for beaches and buzz; and Herceg Novi for a sunny, greener setting near the Croatian border.
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