Retiring in Malta on Social Security: payments and local contributions

Malta attracts American retirees for its English-speaking administration, its climate and a tax programme designed around pension income. Before you plan a retirement budget around Social Security, two questions need clear answers: will the Social Security Administration (SSA) keep paying you while you live in Malta, and what happens to social security contributions if you keep working part time or freelancing after the move.

This guide answers both from SSA, IRS and Maltese government sources.

Will SSA pay you in Malta?

SSA publishes a Payments Abroad Screening Tool and two country lists. Malta appears on SSA's Country List 2. For US citizens, the practical result is straightforward: if you are a US citizen receiving benefits on your own work record, SSA continues paying you while you live in Malta, for as long as you remain eligible.

SSA's publication "Your Payments While You Are Outside the United States" adds the details that matter for families:

• US citizens can generally receive benefits abroad indefinitely in countries where SSA can send payments, which includes Malta.
• Dependents and survivors who are not US citizens can face additional residency requirements. A non-American spouse may need to show five years of residence in the US in a qualifying family relationship before benefits can continue abroad, with exceptions listed by SSA. If your spouse is not a US citizen, run them through the screening tool separately.
• Reporting duties continue. SSA sends questionnaires to beneficiaries abroad. Not returning them can lead to suspension of payments. Keep SSA updated with your Maltese address, and if you will be away from home for long periods, give SSA a way to reach you.

The screening tool takes a few minutes and is the official answer for your own case. Use it again if your marital status, citizenship or benefit type changes.

How the money reaches Malta

SSA can deposit to a US bank account or, in many countries, directly to a foreign bank account through its international direct deposit arrangements. Many retirees keep their payments flowing into a US account, then transfer euros to a Maltese bank as needed. A US account also keeps IRS refunds, Medicare premium payments and US card accounts working.

If you are going to use the Malta Retirement Programme, note one point from its rules: the programme requires that the pension is received in Malta and constitutes at least 75% of your chargeable income. Social Security is a pension paid in respect of past employment, so check with your authorised registered mandatary how your Social Security deposits will be shown as received in Malta. The rules use the phrase "all of which is received in Malta", so routing your benefit to a Maltese account may be the simplest evidence.

Medicare does not travel with you

Medicare generally does not pay for care outside the United States. Moving to Malta does not end your Medicare enrollment, but Medicare Part B premiums continue if you stay enrolled, and late enrollment penalties can apply if you drop Part B and re-enroll later. Weigh that before cancelling. For Maltese residence, Identità asks non-EU applicants who are not covered by Malta's social security system for private health insurance of at least €100,000 for inpatient and outpatient treatment in Malta.

No totalization agreement with Malta

The United States has totalization agreements with a list of countries that coordinate social security coverage and let workers combine credits. SSA's international agreements pages and the IRS totalization page list the partner countries. Malta is not on the list.

Without an agreement, three things follow:

1. No credit combining. Your Maltese contributions cannot be added to your US work record to qualify for a US benefit, and US credits cannot help you qualify for a Maltese pension.
2. Possible double contributions. The IRS explains that US citizens who are self-employed abroad owe US self-employment tax on net earnings of $400 or more, even if the income is excluded from US income tax under the foreign earned income exclusion. Without a totalization agreement, there is no certificate that exempts you from either system.
3. Malta still applies its own rules. If you are employed or self-occupied in Malta, Maltese social security law applies to your earnings.

Maltese social security contributions if you work

Malta's Department of Social Security sets out contribution classes:

• Class 1 covers employed persons. For 2026, the department's tables show contributions generally at 10% of wages from the employee and 10% from the employer, with maximum weekly amounts above set wage levels. For people born from 1 January 1962, the 2026 maximum is €55.93 a week for each side.
• Class 2 covers self-occupied persons with annual income above €910. The 2026 tables show a standard weekly rate and a 15% rate on net earnings in the higher bands, with a weekly cap for people born from 1962.

The department also publishes guidance on when a third-country national can be exempt from registering under the Social Security Act. If you are retired and not working in Malta, you are not paying Class 1 or Class 2 on your pension. Earnings from work are what trigger contributions.

Working in retirement: the US side

If you keep a US employer and work remotely from Malta, your US employer usually keeps withholding US Social Security and Medicare tax, because coverage follows US employment by an American employer in most cases. If you freelance, you file Schedule SE with your Form 1040 and pay US self-employment tax. In both cases, your Maltese obligations are a separate question that depends on your permit and where the work is performed. Ask a Maltese adviser before taking local work as a retiree, and note that some residence statuses restrict employment.

Taxes on your Social Security in Malta

The United States and Malta have an income tax treaty, in force since 2010 and generally effective from 1 January 2011, according to the IRS treaty list. The treaty text, published by the IRS and Treasury, includes an article on social security payments. Under the Malta Retirement Programme, foreign pension income received in Malta is taxed at the flat 15% rate, subject to a minimum annual tax of €7,500 plus €500 per dependant under the current rules. Your US return still has to be filed, because the US taxes citizens on worldwide income. Read the treaty article with a tax adviser before deciding how Social Security will be taxed in each country.

A checklist before you move

1. Run yourself and every family member who receives benefits through SSA's Payments Abroad Screening Tool.
2. Decide where your benefit will be deposited and whether that fits the Malta Retirement Programme's receipt rule.
3. Update SSA with your new address and keep a reliable way to receive SSA mail.
4. Decide on Medicare Part B with the late enrollment penalty in mind.
5. If you will work, find out which Maltese contribution class applies and budget for US self-employment tax if you freelance.
6. File your US return every year from Malta, with the treaty and the foreign tax credit in view.

Common questions

Can I receive US Social Security while living in Malta? Yes, if you are a US citizen. Malta is on SSA's Country List 2, and SSA's guidance says US citizens can receive their benefits there while they remain eligible. Non-citizen dependents and survivors may face extra residency rules.

Does the US have a totalization agreement with Malta? No. Malta is not on the SSA and IRS lists of totalization agreement countries, so credits cannot be combined and there is no exemption certificate for dual coverage.

Do I pay Maltese social security on my pension? Maltese Class 1 and Class 2 contributions apply to earnings from employment and self-occupation. A retiree who is not working in Malta does not pay those classes on pension income.

Will Medicare cover me in Malta? Medicare generally does not pay for care outside the United States. Identità asks non-EU residents who are not covered by Maltese social security for private health insurance with at least €100,000 of cover.