In short
Lisbon and Valletta cost about the same — about €2,185 and €2,140 a month for a single person with a central 1-bedroom. Portugal offers Americans a digital nomad visa, a retirement visa and a golden visa. Malta offers Americans a digital nomad visa, a retirement visa and a golden visa. Citizenship takes about 10 years of residence in Portugal and 5 in Malta. Every figure below is checked against official sources.
The verdict
Which Country Fits You?
Where one side is clearly better for most Americans, it gets the point — the rest depends on your plans.
Choose Portugal if…
- You live on a pension or savings: D7 visa — passive income from €920 a month (2026).
- Healthcare matters most: legal residents can use the public SNS.
- You fly home often: TAP nonstop from 8 US cities, plus United and Delta.
Choose Malta if…
- You live on a pension or savings: Malta Retirement Programme — pension at least 75% of income; 15% tax, minimum €7,500.
- You want a special tax regime for retirees: non-dom: foreign income taxed only if brought to Malta (€5,000 minimum tax).
- You want citizenship sooner: naturalisation after 5 years at the minister's discretion; dual citizenship allowed.
- You want residence through investment and want the lower bar: Permanent residence (MPRP) — about €99,000 in fees plus €375,000 property or rent.
Retirement Visa
Both Offer Retirement Visas
| Portugal | Malta | |
|---|---|---|
| Retirement / passive-income visa | PortugalD7 visa — passive income from €920 a month (2026) | MaltaMalta Retirement Programme — pension at least 75% of income; 15% tax, minimum €7,500 |
| Public healthcare | PortugalLegal residents can use the public SNS | MaltaFree public care if you pay Maltese social security; nomad, retiree and MPRP holders need private cover |
| Special tax regime | PortugalIFICI — 20% flat for 10 years on qualifying skilled jobs; not for pensions | MaltaNon-dom: foreign income taxed only if brought to Malta (€5,000 minimum tax) |
| Income tax | Portugal12.5% to 48% (2026) | Malta0% up to €12,000, then 15–35% |
Cost of Living
Lisbon and Valletta Cost About the Same
| Portugal | Malta | |
|---|---|---|
| 1-bed apartment, city centre | Portugalabout €1,425 (Lisbon) | Maltaabout €1,263 (Valletta)✓ |
| 1-bed apartment, outside centre | Portugalabout €1,063 (Lisbon) | Maltaabout €993 (Valletta)✓ |
| Everyday costs, single person (no rent) | Portugalabout €760 (Lisbon)✓ | Maltaabout €880 (Valletta) |
| Total a month — single, central 1-bed | Portugalabout €2,185 (Lisbon) | Maltaabout €2,140 (Valletta) |
Living costs: Numbeo estimates for the capital (2026), as shown with sources on each city guide and in the key facts below.
Settling In
Malta Leads to Citizenship Sooner
| Portugal | Malta | |
|---|---|---|
| Permanent residence | PortugalAfter 5 years, with A2 Portuguese | MaltaEU long-term residence after 5 years; MPRP gives it from the start |
| Citizenship | Portugal10 years since May 2026 (7 for some nationalities) | MaltaNaturalisation after 5 years at the minister's discretion; dual citizenship allowed✓ |
| Public healthcare | PortugalLegal residents can use the public SNS | MaltaFree public care if you pay Maltese social security; nomad, retiree and MPRP holders need private cover |
Tax & Business
Taxes & Company Rules
| Portugal | Malta | |
|---|---|---|
| Income tax | Portugal12.5% to 48% (2026) | Malta0% up to €12,000, then 15–35% |
| Special tax regime | PortugalIFICI — 20% flat for 10 years on qualifying skilled jobs; not for pensions | MaltaNon-dom: foreign income taxed only if brought to Malta (€5,000 minimum tax) |
| Usual company | PortugalLda — capital from €1; same-day formation | MaltaLtd — €1,164.69 capital (20% paid up); no notary |
| Corporate tax | Portugal19% in 2026, falling to 17% by 2028 | Malta35% headline, about 5% net after shareholder refunds✓ |
| US tax treaty | PortugalSigned 1994; Social Security agreement since 1989 | MaltaTreaty since 2011; no Social Security agreement |
US citizens & Green Card holdersThe US still taxes you
Wherever you live, the US taxes its citizens on worldwide income. You keep filing a US return, and an FBAR once your foreign accounts total more than $10,000 at any time in the year.
Daily Life
Daily Life in Lisbon and Valletta
| Portugal | Malta | |
|---|---|---|
| Population (capital) | PortugalAbout 576,000; 2.9 million in the metro area | MaltaMalta about 588,000, 31% foreign nationals |
| Public transport (capital) | PortugalNavegante pass €40 (metro area) or €30 (Lisbon only) | MaltaFree buses for residents with a personalised card |
| Nonstop flights to the US | PortugalTAP nonstop from 8 US cities, plus United and Delta | MaltaDelta nonstop from New York June–October; otherwise connect in Europe |
| Currency | PortugalEuro | MaltaEuro |
FAQ
Portugal or Malta? Your questions
Is Lisbon or Valletta cheaper?
They cost about the same: a single person with a central 1-bedroom spends about €2,185 a month in Lisbon and €2,140 in Valletta (Numbeo, 2026). Rent for a central 1-bedroom is about €1,425 in Lisbon and €1,263 in Valletta.
Can I retire in Portugal or Malta as an American?
Portugal: D7 visa — passive income from €920 a month (2026). Malta: Malta Retirement Programme — pension at least 75% of income; 15% tax, minimum €7,500.
How long until I can get citizenship?
Portugal: 10 years since May 2026 (7 for some nationalities). Malta: Naturalisation after 5 years at the minister's discretion; dual citizenship allowed.
Do I still pay US taxes if I move?
Yes. The US taxes its citizens on worldwide income wherever they live. You keep filing a US return, and an FBAR once your foreign accounts total more than $10,000. Foreign tax credits and the treaties usually prevent paying twice on the same income.
Portugal vs Malta: key factsLast verified 2 October 2026
| Portugal: Lisbon rent | 1-bedroom about €1,425 a month in the centre and €1,063 outside (Numbeo, September 2026) Source: Numbeo: Cost of living in Lisbon |
|---|---|
| Portugal: Lisbon living costs | A single person spends about €760 a month without rent — about €2,185 with a central 1-bedroom (Numbeo, September 2026) Source: Numbeo: Cost of living in Lisbon |
| Malta: Rent | 1-bedroom in Valletta about €1,263 a month in the centre (€993 outside); Sliema about €1,564; Gozo about €813 (Numbeo, 2026) Source: Cost of Living in Valletta (Numbeo) · Cost of Living in Sliema (Numbeo) · Cost of Living in Gozo (Numbeo) |
| Malta: Living costs | A single person spends about €880 a month without rent in Valletta (Numbeo, June 2026) — about €2,140 with a central 1-bedroom Source: Cost of Living in Valletta (Numbeo) |
| Portugal: D7 passive income visa | Passive income of at least €920 a month in 2026 (+50% for a spouse, +30% per child); consulates usually expect about 12 months of that (€11,040) in a Portuguese bank Source: What Portugal's 2026 Minimum Wage Rise Means for Visas: Portugalist · Portugalist: D7 visa requirements 2026 |
| Malta: Malta Retirement Programme | Pension at least 75% of your taxable income; 15% tax on pension remitted to Malta, minimum €7,500 a year (+€500 per dependant); €2,500 fee; at least 90 days a year in Malta (rules until end-2026) Source: CSB Group: MRP · CSB Group: Malta tax residence programmes from 2027 |
| Portugal: Healthcare | Legal residents can use the public SNS with a user number; private hospital plans cost about €13–77 a month at age 40 Source: gov.pt: Pedir o número de utente do SNS · DECO PROteste: Seguros de saúde Multicare, Médis |
| Malta: Healthcare | Free public healthcare for people paying Maltese social security; permit holders on the Nomad, GRP, retirement and MPRP routes need private health insurance Source: Malta EESSI healthcare info |
| Portugal: IFICI (successor to NHR) | 20% flat tax for 10 years on income from qualifying highly skilled jobs, research and startups, with most foreign income exempt — not pensions; you must not have lived in Portugal in the previous 5 years Source: Incentivo fiscal a investigacao cientifica e inovacao: AT leaflet · Startup Portugal: Legal Bites #03 IFICI |
| Malta: Non-domiciled residents | Foreign income is taxed only if brought to Malta; a €5,000 minimum tax applies if foreign income is €35,000 or more Source: PwC Tax Summaries: Malta — individual taxes |
| Portugal: Income tax | 12.5% to 48% in 2026 (top rate above €86,634), plus a 2.5% / 5% solidarity surcharge above €80,000 / €250,000 Source: PwC Tax Summaries: Portugal individual · CIRS art. 68-A: Portal das Financas |
| Malta: Income tax | Residents pay 0–35%: 0% up to €12,000, then 15%, 25% and 35% above €60,000 (single, 2026) Source: PwC Tax Summaries: Malta — individual taxes |
| Portugal: Permanent residence | After 5 years of temporary residence, with A2 Portuguese, means of support and accommodation Source: Lei 23/2007 art. 75 (PGD Lisboa) |
| Malta: Long-term residence | EU long-term resident status after 5 years of legal residence Source: EUR-Lex Directive 2003/109/EC |
| Portugal: Citizenship | Since 19 May 2026: 10 years of legal residence (7 for EU and Portuguese-speaking countries), counted from when the first permit is issued; applications pending before then keep the old 5-year rule Source: Lei Organica n.o 1/2026: Diario da Republica · Portugal Citizenship Law Published: LiveinPT |
| Malta: Citizenship | By naturalisation after 1 year of continuous residence plus 4 years in the preceding 6, at the minister's discretion; dual citizenship allowed Source: Maltese Citizenship Act Cap.188 |
| Portugal: Usual company type | Lda or single-member Unipessoal Lda: capital from €1 per share; same-day Empresa na Hora (€360) or Empresa Online (€220 with standard articles) Source: Decreto-Lei 33/2011 (Diário da República) · InvoiceXpress: Como criar uma empresa em Portugal em 2026 |
| Malta: Usual company type | Private limited company (Ltd): minimum capital €1,164.69, at least 20% paid up; 1 director, a company secretary (an individual) and a registered office in Malta; no notary Source: Registering a business in Malta: guide (Mondaq, 2026 update) · The role of the Company Secretary under Maltese Law (BDO Malta) · MBR: Registration and fee structure |
| Portugal: Corporate tax | 19% in 2026 (18% in 2027, 17% in 2028); 15% on the first €50,000 for SMEs, 12.5% for certified startups; plus up to 1.5% municipal surcharge Source: CIRC art. 87 (Portal das Finanças) · PwC Tax Summaries: Portugal corporate income |
| Malta: Corporate tax | 35%, but shareholders can claim a 6/7 refund of the tax on distributed trading profits — about 5% net; 5/7 for passive interest and royalties (about 10%) Source: Malta Tax Highlights 2026 (Deloitte) · Malta Tax System (KPMG Malta) |
| Portugal: US tax treaty | Signed 1994, in force since 1996; the saving clause keeps US taxation of citizens Source: Portugal tax treaty documents: IRS |
| Malta: US tax treaty | The US–Malta income tax treaty has applied since 1 January 2011; the saving clause keeps US taxation of citizens Source: IRS: Malta tax treaty documents |
| Portugal: Lisbon population | 575,739 in the city (2024 estimate); about 2.9 million in the metropolitan area Source: INE: Retrato municipal Lisboa 2025 · Renascença: Censos 2021 Área Metropolitana de Lisboa |
| Malta: Population | 588,254 at the end of 2025, of whom 31.1% are foreign nationals Source: NSO Malta: World Population Day 2026 · Malta's population rose to 588,254 by end 2025: NSO (MaltaToday, Jul 2026) |
| Portugal: Lisbon transport | Navegante monthly pass €40 for the whole metro area or €30 for Lisbon only; free for under-18s, students up to 23 and Lisbon residents over 65 Source: Carris: Frequent travellers (Navegante prices) |
| Malta: Public transport | Free buses (and the Valletta ferries) for residents with a personalised tallinja card since October 2022 Source: Free Travel Scheme with effect from 1 October 2022 (Malta Public Transport) · Tallinja Ferry Service (Malta Public Transport) |
| Portugal: Flights from the US | TAP flies to Lisbon from Newark, New York, Boston, Washington, Chicago, Miami, San Francisco and Los Angeles; United and Delta add more Source: TAP: Flights from United States · Echo Boomer: United reforça Lisboa-Washington Verão 2026 |
| Malta: Flights from the US | Delta flies nonstop New York–Malta three times a week from June to October (since summer 2026); the rest of the year you connect in Europe Source: Malta International Airport: summer 2026 network with a US link |
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