A comfortable retirement works out cheaper in Philippines — around £1,650/month for a couple, versus £2,200 in Malta (about 25% more).
Cost of living, side by side
| Malta | Philippines | |
|---|---|---|
| Modest (couple/mo) | £1,600 | £1,000 |
| Comfortable (couple/mo) | £2,200 | £1,650 |
| Premium (couple/mo) | £3,300 | £2,700 |
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.
Philippines: Foreigners can own a condominium unit outright (freehold) as long as foreign ownership across the building stays within the 40% cap, but cannot own land directly. Land is instead held through a long-term lease (recently extended up to 99 years for qualifying projects) or via a genuine majority-Filipino 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.
Philippines: The Special Resident Retiree's Visa (SRRV) is the main route; since a 2025 overhaul it opens from age 40 with a bank deposit (from roughly US$15,000 for pensioner applicants aged 50+, more for younger or non-pension applicants) plus proof of income.
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.
Philippines: Private hospitals in Manila and Cebu are modern and far cheaper than in the West, and most expats use them; the state PhilHealth scheme is basic, so private cover is common — international plans from about US$1,000 a year, or cheaper local HMOs. Retirees enrolled through the retirement authority pay a modest annual PhilHealth fee of around US$250.
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.
Philippines: The Philippines taxes residents only on Philippine-source income, so a foreign pension is generally not taxed at all; retirement income remitted from abroad, and SRRV-holders' pensions, are explicitly exempt. It is one of the more tax-friendly bases for a pensioner, though your home country may still tax the pension.
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.
Philippines: Tropical and hot year-round with high humidity; the dry season (roughly November-April, coolest December-February) is most comfortable, while June-November is wetter with typhoon risk. Famously warm and welcoming, with normal precautions against petty crime and some far-southern areas best avoided; English is an official language and very widely spoken, and driving is on the right.
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.
Philippines: For the buyer, one-off costs are roughly 4-5% — documentary stamp tax of 1.5%, transfer tax of 0.5-0.75%, plus registration and notary fees — while the 6% capital gains tax is customarily the seller's. Foreigners can own condominium units (not land), and title transfer through the Registry of Deeds takes some weeks.
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.
Philippines: Cebu for city amenities with beaches close by, Metro Manila for the widest choice of hospitals and services, laid-back Dumaguete for an affordable university-town pace, and Tagaytay for cooler upland air near the capital.
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