Banking in Malta: A Practical Guide for Expats

As an expat living in Malta, I want to share my firsthand experience with banking on this Mediterranean island. Whether you're planning a short stay or considering Malta as your long-term home, understanding your banking options is crucial for a smooth transition.

The Banking Landscape in Malta

Being in the Eurozone means you can use euros everywhere in Malta, and your European bank cards will generally work fine. However, I've discovered that some places, especially smaller shops and certain areas, might not accept card payments. This is where having alternatives becomes important.

Local Banks: The Complete Picture

The main banks in Malta are Bank of Valletta (BOV) and HSBC Malta. Let me be honest about my experience - I tried opening a business account with HSBC, and after a 9-month wait, they rejected my application. Opening a personal account isn't much easier, with:

• 1-2 months wait for your first appointment
• Multiple bank visits required
• Extensive documentation needed (ID, proof of address, income proof)
• Several weeks of processing time

Revolut: The Local Payment Champion

Here's something crucial I've learned: Revolut has become incredibly popular in Malta, and there's a good reason for this. When card payments aren't accepted (which happens more often than you'd think), Revolut is almost always an option. Here's why it's particularly useful:

• Accepted everywhere, including:
  • Small local businesses
  • Bolt drivers (local ride-sharing)
  • Restaurants and cafes
  • Places that don't accept regular card payments
• QR code payments are widely used
• Quick and easy setup
• Perfect for splitting bills and instant transfers

Smart Way to Use Revolut

From my experience, there are two approaches to using Revolut in Malta:

1. Short-term visitors or temporary residents:
   • Keep your home country bank account as your main account
   • Use Revolut as a convenient local payment solution
   • Perfect for daily transactions without committing to a local bank
2. Long-term residents:
   • Consider limiting Revolut usage to within Malta
   • Having a local bank account alongside Revolut offers more benefits

When Do You Really Need a Local Bank Account?

Through my time here, I've identified several key reasons for opening a local account:

1. Tax Benefits:
   • Malta operates on a remittance basis taxation system
   • Only money transferred to Maltese accounts is taxable
   • Having a local account helps clearly separate taxable and non-taxable income
2. Future Opportunities:
   • Easier access to mortgages and loans
   • Better relationships with local financial institutions
   • Stronger ties to the local community and economy
3. Long-term Integration:
   • Demonstrates commitment to living in Malta
   • Helpful for various administrative procedures
   • Can improve your standing when dealing with local authorities

My Personal Banking Setup

Let me share my approach: I use both a local bank account and Revolut, but in different ways:

• Local account for tax purposes and future financial planning
• Revolut for daily transactions and local payments
• Home country account for international transactions and savings

Choosing What's Right for You

Based on your situation, here's what I recommend:

For Short-Term Stays (Less than a year):

• Keep your home country bank account
• Set up Revolut for local payments
• No need for a local bank account unless required for specific purposes

For Long-Term Residents:

• Open a local bank account (despite the hassle, it's worth it)
• Use Revolut for daily convenience
• Consider keeping your home country account for international transactions

Important Tips from My Experience

1. Start Early:
   • If you plan to open a local account, begin the process as soon as possible
   • The lengthy setup time means you'll want a Revolut account for immediate needs
2. Document Preparation:
   • Have all your paperwork ready before starting the bank application
   • This includes residence permits, income proof, and reference letters
3. Banking Strategy:
   • Think long-term about your financial needs in Malta
   • Consider how you'll handle international transfers and local payments
   • Plan your banking setup based on your tax situation

Remember, there's no one-size-fits-all solution. Your banking needs will depend on your length of stay, financial goals, and integration plans in Malta. The key is to start with Revolut for immediate functionality while planning your longer-term banking strategy based on your specific situation.

Need more specific advice about banking in Malta? Feel free to reach out - I'm happy to share more details about my experience and help you navigate the local banking system!