Malta currency: euros, cards and cash for UK visitors

Malta’s currency is the euro, not the pound, which surprises a fair few British visitors given the red postboxes and the driving on the left. It’s worth sorting out before you go, not because paying is difficult but because a couple of habits will save you money. Which card to use, what to say when a machine offers sterling, where cash still matters and how the VAT refund works if you shop.

From the lira to the euro

Malta switched to the euro with the new year in 2008, four years after joining the EU. It went for a big-bang changeover, with notes and coins in use from the first day, and through January 2008 the euro and the Maltese lira circulated side by side. From 1 February, according to Visit Malta, the euro has been the only legal tender in Malta and Gozo.

Each euro was swapped for 0.4293 lira, which put a single lira at about €2.33. If you’ve a few old lira notes in a drawer from a trip decades ago, I’m afraid they’re keepsakes now. The Central Bank of Malta accepted coins until 1 February 2010 and notes until 31 January 2018, the European Commission records.

Should you pay in euros or pounds?

In euros, every time. Visit Malta notes that most hotels, larger shops and restaurants will take payment in major international currencies, but that conversion charges may be applied when they do. The same logic applies when a card terminal asks whether you’d like to be charged in pounds. I’d always choose euros and let my own card handle the exchange, as at least then I know the terms in advance. Card payments converted into pounds with a fee are one of the few scams in Malta that official sources record. Your own bank’s fees for card use and cash withdrawals abroad vary from one account to the next, so it pays to look them up before the trip.

Cards, cash and card-only museums

Spain’s Foreign Ministry lists Visa, Mastercard, American Express, Diners Club and Eurocard as the most widely accepted cards, and notes that some shops also take prepaid cards like Revolut. Bus drivers sell tickets on board for cash, a contactless card or your phone.

The surprise runs the other way. Fondazzjoni Wirt Artna’s wartime sites in Valletta and Birgu, led by the Lascaris War Rooms, are cashless and only take cards at the ticket desk. I think that’s fine, but if you’re someone who travels with notes, know it before you reach the door.

Cashpoints, banks and the airport

Visit Malta says banks, cashpoints and bureaux de change are found all over the islands, and those at the airport are open 24 hours. You’ll find cash machines in the arrivals hall straight after landing, with more in check-in and by gate 4 in Schengen departures. Banks keep morning hours, open until 14:30 on weekdays and 11:30 on Saturdays, according to the Spanish Foreign Ministry.

If you hire a car, expect the company to block a sum on your card as a deposit. Under EU rules they must tell you and get your agreement, and your bank has to release it once you’ve paid the final bill. There’s more in my guide to car hire in Malta.

VAT, and getting some of it back

Standard VAT is 18%, hotel stays 7% and food 0%. On top of that sits the eco-contribution introduced in July 2026, €1.50 for every adult and every night, stopping at €22.50, charged without VAT or commission. How it all adds up is in is Malta expensive.

Living outside the EU also means a tax refund is possible on bigger shopping trips. The cruise port’s guide to the scheme sets two thresholds, €55 with any one retailer and €315 overall each time you depart, asks for the paperwork to be stamped as you leave EU territory for the last time and deducts a handling charge of 4%, or €23 if that’s more.

The coins in your change

Malta’s coins are worth a look. The European Central Bank lists three national faces. The small change of 1, 2 and 5 cents carries the altar at Mnajdra, a temple from around 3600 BC above the sea; the 10, 20 and 50 cent coins show the Malta coat of arms with its mural crown standing for the fortifications; and the €1 and €2 coins bear the white eight-pointed cross of the Order of St John, which the ECB notes is now often referred to as the Maltese Cross.