If you have moved to Malta, whether for work or retirement, you probably need to open a bank account. This should not be a problem, as the country hosts many national and international banks.
Why open a bank account in Malta
If you are living in Malta, opening a bank account locally offers numerous advantages:
- The account can be in euros or dollars, and you can use your debit or credit card worldwide;
- You can make fee-free withdrawals;
- Currency conversion is exempt from exchange fees;
- You can open a multi-currency account;
- Banks are regulated by the MFSA (Malta Financial Services Authority);
- You can manage your account online.
In some cases, opening a bank account in Malta is essential, for example, if you start a business, need to receive a salary in Malta, or choose a retirement plan requiring beneficiaries to receive their pension in Malta.
With a strongly positive GDP, the Maltese economy is healthy. The banking sector contributes about 15% to the country's GDP. Malta's growth is steady, the political situation is stable and business-friendly, and the Maltese tax system is advantageous, ensuring your money is safe. It's also worth noting that Malta is a significant offshore financial center.
Banks in Malta
The banks in Malta are highly professional and provide fair treatment to individuals, professionals, businesses, residents, and non-residents alike. You simply need to choose the bank to open your account and gather the necessary documents.
If you plan to work in Malta, inquire with your new employer about which bank they use for salary payments. Some sectors tend to favor certain banks, so it's best to confirm before opening an account.
You will have plenty of options for your banking operations in Malta, both for personal accounts and business accounts.
- For EU/EEA nationals, opening a bank account is relatively straightforward and easy.
- Third-country nationals should expect a longer process for opening an account, as local banks handle applications and verify foreign information.
The Bank of Valletta (BOV) is quite popular, with ATMs and branches spread throughout the archipelago. HSBC is also an option, as are APS Bank, BNF Bank, and many others. Fees may apply if you withdraw money from an ATM other than your bank's.
Which bank to choose in Malta?
If you are considering opening a bank account in Malta, look for a bank that offers excellent customer service with relatively high efficiency.
The Maltese banking system is sophisticated and modern, offering options for both local and international investors.
It is important to carefully review the offerings, as service and transaction fees can vary significantly.
There are many banks in Malta, and you can find a link to the list in the "Useful links" section below.
Bank of Valletta (BOV) is the most popular local bank, with around 39 branches in the archipelago (35 in Malta and 4 in Gozo).
HSBC is a reputable international bank, with 12 branches in Malta.
Sparkasse Bank is less present, but its good reputation attracts many clients.
IIG Bank has only two branches on the island, but many locals choose this bank.
Good to know:
If you are a resident in Malta with a fixed income, it may be easier to open a bank account in Malta. If you have no debts, it might even be done in less than two hours!
Procedures for opening a bank account in Malta
Many banks in Malta offer a wide range of accounts and services for both individuals and businesses. Before deciding, visit different branches to compare offers and find the bank that best suits you. There are four main types of accounts:
- The current account: equivalent to a "checking account". It is intended for daily use. People use this type of account for non-cash payments.
- The business account: intended for companies.
- The savings account: not intended for daily use. This type of account allows you to deposit funds for savings purposes. Withdrawals are limited, and interest is (historically) accumulated.
- The deposit account: this type of account is for depositing money. You can secure the account for a certain period.
In Malta, it is possible to open a bank account without being a tax resident, but you must have a local address. You can then manage your account online, from your mobile device, or from a landline.
The documents required to open a bank account vary depending on the type of bank account and the bank. However, you can follow these guidelines and inquire with your bank and branch for more details.
Individuals are generally required to provide the following documents:
- A letter from their main bank stating they are not in debt and eligible for a bank credit;
- A copy of their passport or Maltese identity card;
- A proof of residence in Malta;
- And a duly completed and signed application for the appropriate type of account.
If you are in debt and not eligible for bank credit, the bank may require you to become a Maltese resident for a certain period before allowing you to open a bank account.
Account holders in Malta can manage it either by phone, online, or via mobile services. They also receive a bank card and a password.
You can have a VISA or MasterCard debit or credit card. The type of card depends on your annual income. For example, at HSBC, for an Advance account, you need to have a minimum income of €20,000 net per year (or €30,000 if applying with your spouse or partner) and have an annual income of €50,000 or €70,000 on a savings or investment account for a Premier account.
Good to know:
If you have just moved to Malta, you can speed up the opening of your new bank account by bringing an original letter from your home bank indicating your status and history. Without this, the Maltese bank may need to contact your bank for confirmation, which could delay opening your account for several weeks.
Opening a business bank account in Malta
Every Maltese company must have a bank account in Malta. A foreign company can also open an account in the currency of its choice or in multiple currencies. To open a business account in Malta, the following documents must be provided:
- A photocopy of the identity card or passport of the director, each shareholder, and the beneficiary;
- A certificate showing that each beneficiary has a personal account;
- Photocopies of the company's articles of association;
- A certificate of good standing for the company;
- Or, for new businesses, documents such as a business plan and a market study to demonstrate the project's viability;
- An electricity bill for each shareholder and director indicating their address.
Good to know:
While it is quite difficult for local entrepreneurs to open a bank account in Malta, the process is even more challenging for non-residents. Previously easier, the procedure has been tightened by Maltese banks. If you cannot open a business bank account, see where you can open an online European business bank account.
Alternatives to opening a bank account in Malta
Is it difficult for you to open a bank account in Malta? Unfortunately, as mentioned above, many expats and foreigners struggle to do so.
In many countries, this process involves foreigners presenting an identity document with proof to the bank. Although major banks such as HSBC, BOV, and BNF Bank state that you simply need to visit their branches to open your account, the procedures in Malta are not as simple and efficient in reality.
If you cannot open a bank account in Malta, find the conditions too strict, or simply do not wish to do so, there are alternatives.
The best alternative to opening a bank account in Malta is to go through an online bank. Due to the strict conditions for opening a bank account in Malta, many expats and even Maltese opt for this solution.
Online banks are full-fledged banks. They offer all the usual banking services, or at least most of them. The main difference from traditional banks (in Malta or any other country) is that they do not have branches.
All banking services are managed online. Although online banks may not offer all the services of a traditional bank, they have other advantages: their fees are lower, and they offer an easy-to-use web or mobile application.
Choosing your online bank from Malta
Of course, you do not need to reside in Malta to open an account with an online bank. Let's see what the best online banks are:
Revolut
Revolut is the most popular online bank in Malta, both among Maltese and expats. It offers both personal and business accounts. For personal accounts, the standard plan is free. Unlike traditional bank accounts, this plan does not require you to pay fees every month.
Other plans are available by subscription, such as the Premium plan. For these, you must pay fees each month in exchange for more services and benefits.
Revolut offers the possibility to order and receive a physical card in Malta, subject to delivery fees.
In Malta, you can pay everywhere with a Revolut card. Some businesses even offer the possibility to pay using NFC technology. Additionally, the Revolut app allows you to make online payments.
Revolut is a very good solution for travelers and expats. It allows you to get better exchange rates and applies no commission. You also benefit from free withdrawals worldwide at ATMs (with a limit).
Finally, you can invest in cryptocurrencies.
Wise
Wise is another reputable online banking solution. It is a British peer-to-peer international money transfer company of Estonian origin. By signing up, you get an online account to send money abroad and be paid in another currency. You can even spend abroad with the Wise debit card and make online payments with the app.
Vivid
Vivid is another online bank you can use in Malta and worldwide. It applies competitive fees and offers a checking account as well as a credit card. Vivid also provides the possibility to invest in fractional shares of companies and cryptocurrencies.
There are other online banks you can use in Malta. Feel free to compare them and their offers to choose the one that best meets your needs in Malta.
To open an online account, you just need to use the financial institution's app or visit its website from a computer. You can choose between different offers, select the one that suits you, and fill out the account opening application form by providing the requested supporting documents.
If online banks are a very popular option for making online payments in Malta, some local traditional banks like BOV also offer an app with this feature to their clients.
Finally, know that you can keep and use your bank account from your home country. This is even easier if you are from another European Union country. Just keep in mind that fees may apply when you withdraw money from an ATM.
If you work in Malta and want to receive your salary in your foreign bank account, it will be easier if your account is domiciled in a country belonging to the SEPA (Single Euro Payments Area). This includes EU countries, the European Economic Area, as well as Switzerland, Andorra, Monaco, San Marino, the Vatican, and the United Kingdom. Generally, no fees are applied.
Check with your company if they agree to pay your salary into your foreign bank account, as some companies may refuse.
Important:
While the alternative banking solutions listed above are interesting, opening a bank account in Malta will allow you to establish a banking history, thus obtaining a local mortgage if you ever need one, for example, to buy real estate in Malta.
Useful links:
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