This Mediterranean Coastal Island Filled With Charming Towns Is An Affordable Retirement Destination

Retiring on a Mediterranean island sounds expensive, however, the cost of living in the United States is about 20% higher than in Malta. If you're currently based in a pricy city, such as Fairfax, Virginia, rents are almost 200% higher than on Gozo, Malta's second-largest island, filled with charming coastal towns. Malta is situated in a triangle between Tunisia, Sicily, and Libya, best known for its main island, where the capital of Valletta is a frequent stop on Mediterranean cruise itineraries. Its 95 square miles are packed with sites that make it the perfect island for a historic vacation. However, for a quieter life, there's nothing quite like retiring to Gozo.

Gozo stuffs its 26 square miles with unique places you'll want to visit more than once. A short walk from the romantic central square of Xagħra, visitors can find Ġgantija Archaeological Park. Ġgantija is a temple complex, so-named because of its impressive formations of large rocks were thought to be the work of giants. In fact, the Neolithic site dates back to around 3600 BC, making it nearly a thousand years older than the circle at Stonehenge.

Fancy a windmill not unlike what you'll see in the Netherlands? Tiny Xagħra is also home to Ta' Kola Windmill, a slice of village life from more than 300 years ago. For those craving seafood, Marsalforn is a wildly underrated coastal town where you can dine on fish-laden pastas or ravioli filled with Gozitan ġbejniet, a sheep's cheese that's prolific on the coastal island.

When it comes to your golden years, the world is your oyster. Malaysia, with its diverse culture and aesthetically pleasing coastlines, is another low-cost winner. If you're interested in Gozo, there are options to get you relaxing at the beach in Ramla Bay or visiting the seaside Xwejni Salt Pans on the regular.

If you're over 55, the Malta Retirement Programme (MRP) could be exactly what you're seeking. It requires that you own property in Gozo of at least €220,000, or rent one that costs a minimum of €8,750 annually. Your income must be at least €9,600, 75% of which comes from a pension. One Euro is equivalent to about one U.S. dollar.

Planning to retire early? The Global Residence Programme (GRP) might be a better fit. You can get a visa that renews every five years, provided that you can demonstrate that you have assets of at least €500,000 and can pay a yearly tax of €15,000. If you prefer to become a citizen, dual passports are an option in Malta, and you can apply after five years, unless you throw down the big bucks as part of the Exceptional Investor Naturalization program. 

Whether you're there to visit or stay as a retiree, you'll arrive in Gozo by ferry at Mġarr Harbor. Try to catch sight of horses swimming in the crystalline waters, then head to the capital city of Victoria. Also known as Ir-Rabat, it was officially named Victoria in 1887 while under British rule, but many locals still know it by its older moniker.

As you enter the city — less than 20 minutes inland by car from coastal Mġarr, the first thing you'll see is the towering Cittadella. The historic citadel is thought to have been active in some form since the Neolithic era. In its current gorgeous state, which traces back to the completion of its reconstruction in the early 17th century, a few families still live in its labyrinthine alleyways, but most of it is taken up by museums, notably the stunning Museum of Archaeology and the Old Prison.

Take advantage of the exceptional dining in the shadow of the Cittadella, where the flavors of North Africa and Southern Europe meld with ingredients raised on the island's farms. Neolitik Kitchen & Lounge emphasizes Gozo's ancient past with murals of statues found at Ġgantija. Start your meal with dates grown nearby rolled with Maltese sausage, honey, and homemade speck before moving on to a local beef filet. Beneath the limestone arches of Maldonado Bistro, sip Maltese wine with Gozitan pork or rabbit. Retiring to Gozo is your ticket to a slower-paced life at a fraction of what it would cost to do the same in the United States, especially when you consider the coastal beauty of your new home.