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So, you’re a digital nomad family looking for your next home base—a place that gives you tax benefits, a great lifestyle, and the security your family deserves? It often comes down to two fantastic choices: Malta and Portugal. While both are excellent destinations, Malta comes out on top for many nomads, especially those seeking simplicity, convenience, and a little extra sunshine. Let’s break down why Malta might be the winner for your family.
1. Tax Residency Breakdown: Who Wins the Tax Game?
Malta: Remittance-Based Taxation (Zero tax on global income, if not brought to Malta)
- Malta’s remittance-based tax system means that if you keep your foreign income outside of Malta, it’s not taxed at all. You only get taxed on what you choose to bring into the country, and even then, it’s at a flat 15% rate. This gives you control over how much of your income is subject to Maltese taxation.
- There’s a minimum annual tax of €15,000, which is quite straightforward. For digital nomads with global clients, it means you can keep the majority of your income tax-free if you plan well.
- No Wealth or Inheritance Tax: Malta doesn’t tax wealth, inheritance or capital gains on assets outside Malta, making it ideal for protecting your investments.
Portugal: Non-Habitual Residence (NHR)
- Portugal’s NHR program offers some appealing incentives, like a flat 20% tax on certain professional income for a decade and the potential for foreign income to be tax-free, depending on double-tax treaties.
- 10 years of Tax Breaks: for foreign-sourced income you can pay little to zero tax.
- However, Portugal’s tax system is more complex and can require a fair amount of navigating to understand which categories of income qualify for exemption or reduced rates. Portugal is tightening some its tax rules, so certain types of income (like dividends and royalties) might be taxed at a higher rate than before. Follow our updates.
Why Malta Wins: Simplicity and Control. Malta’s remittance-based approach gives you more freedom and fewer hoops to jump through. There’s no ambiguity—if you don’t remit your income, you don’t pay taxes on it. It’s simple, efficient, and much easier to plan around compared to Portugal’s rules.
2. Language: The Comfort of English
Malta: English as an Official Language
- One of Malta’s strongest perks is that English is an official language, making daily life smooth for expats. Whether it’s dealing with local authorities, finding schools, or making new friends, there’s no language barrier. This also makes the transition for your kids seamless, especially in the school environment.
Portugal: Learning Portuguese Is Key
- Portugal’s official language is Portuguese, and while you’ll find many people who speak English in the cities, the farther out you go, the more essential it becomes to speak the local language. Plus, if you want to deal with official paperwork or integrate fully, Portuguese is a necessity.
Why Malta Wins: No Language Barriers. The fact that you and your family can communicate easily in English from day one is a massive advantage, especially if you want to settle quickly without the pressure of learning a new language.
3. Family-Friendly Lifestyle: Small Size, Big Benefits
Malta: Safe, Compact, and Accessible
- Malta is small, and this comes with significant perks for families. Everything is close—schools, healthcare facilities, coworking spaces, and leisure activities. You don’t need to worry about long commutes or navigating large cities. For families, this means more quality time spent together and a relaxed pace of life.
- Malta also has excellent private international schools with English instruction, perfect for expat kids. And with its small size, you get the benefit of a close-knit community, where safety is always top-notch.
Portugal: More Spread Out, Less Convenience
- Portugal offers a more varied landscape—from the Algarve beaches to city life in Lisbon and Porto. But with size comes the need for longer travel distances, and if you’re considering places like the Algarve for its lower cost of living, you may find fewer international schools and facilities nearby.
- Portugal’s larger size can mean a slower integration for families, as getting from one place to another takes more time. This also impacts commutes and daily logistics, especially for those used to a compact setting.
Why Malta Wins: Accessibility and Safety. Malta’s small, easy-to-navigate setting is a big advantage for families wanting convenience, safety, and a greater sense of community. Less time traveling means more time enjoying life with the family.
4. Education and Healthcare: Quality and Ease
Malta: High-Quality International Schools & Great Healthcare
- Malta offers several reputable international schools, all taught in English. Many private schools in Malta follow the British curriculum, and some offer international programs such as the International Baccalaureate (IB) or Cambridge IGCSEs. This makes it easier for children to continue their studies if your family plans to relocate again in the future, as these are globally recognized qualifications.
- The healthcare system in Malta is highly regarded, with a good mix of public and private services that provide high-quality care. English-speaking medical professionals ensure there are no language issues, which is a huge comfort when it comes to healthcare.
Portugal: Diverse but May Require Adjustments
- Portugal also has many international schools, particularly in Lisbon and Porto, but they may not be as accessible if you’re living in smaller towns or rural areas. Additionally, while the healthcare system is excellent, language barriers may be a challenge, especially in less urban areas.
Why Malta Wins: Education and Healthcare with No Barriers. Malta provides English-language schooling and healthcare, making your family’s adjustment smooth and worry-free. No need to look for specialized schools or learn a new language for doctor visits!
5. Residency Process and Paperwork: Streamlined Approach
Malta: Efficient and Straightforward Residency
- Malta’s Global Residence Program (GRP) is a fairly efficient route to residency. All you need is to prove stable income and commit to buying or renting property on the island. Compared to other European countries, the requirements are pretty clear, and the process moves quickly.
- Property Investment: to qualify, you’ll need to either buy property worth at least €220,000 or rent for a min of €8,750 annually.
- While Malta’s real estate can be on the pricier side, it’s also a strong market. Investing in property here is likely to be a stable and potentially profitable decision, given Malta’s popularity among expats and tourists.
Portugal: More Bureaucracy, Slower Process
- Portugal offers the D7 Visa, which is accessible for digital nomads and families. However, the paperwork can be more extensive, and getting residency approved can be a slower process compared to Malta. There are also more stringent requirements around income proof and property commitments.
Why Malta Wins: Simplicity and Speed. Malta’s residency process is more efficient, making it easier to get set up and start enjoying life. Less bureaucracy means less stress!
6. Community and Quality of Life: Lifestyle
Malta: A Rich and Welcoming Community in a Stunning Setting
- Malta’s Mediterranean lifestyle is hard to beat: the climate is warm, the sea is sparkling, and the pace of life is just right for those wanting a balance of relaxation and productivity. The expat community is thriving, meaning it’s easy to find others living a similar lifestyle—whether that’s families, remote workers, or retirees.
- You’re never far from the ocean, which makes weekends full of adventure and family-friendly fun—whether you’re swimming, snorkeling, or exploring ancient ruins and historical sites.
Portugal: Diverse but More Varied Pace
- Portugal also offers an incredible lifestyle, but with a much wider range of environments—from bustling city centers to quiet villages. While this diversity can be exciting, it may feel overwhelming for families looking for a single, compact community experience.
- Coastal cities like Lisbon or Porto provide amazing cultural experiences but can also mean higher costs of living, especially for larger family homes in popular areas.
Why Malta Wins: Island Life with a Close-Knit Community. Malta’s combination of Mediterranean vibes, a welcoming expat community, and compact size makes it ideal for families seeking a balance between excitement and comfort without feeling overwhelmed.
Final Thoughts: Malta or Portugal? Malta Might Be Your Perfect Fit!
When weighing Malta and Portugal, Malta clearly has some big advantages for digital nomad families:
- Simple and favorable tax laws that give you more control over your income.
- An English-speaking environment that makes day-to-day living effortless.
- A compact, safe, and community-oriented lifestyle, perfect for young families.
- Excellent international schooling and healthcare without any language barriers.
- An efficient residency process, meaning you can settle in and start enjoying your new life quickly.
Malta’s got the sun, the community, the simplicity, and the benefits that make living abroad as a digital nomad family truly rewarding. So, if you’re after that perfect balance of lifestyle, convenience, and tax advantages, Malta might just be the perfect island to call your new home.
Ready to start your Maltese adventure? The Mediterranean is calling, and it’s got an amazing place for you and your family. Contact us now!
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