Malta and Cyprus are the only European jurisdictions in the global top 10 for tax conditions affecting internationally mobile people, while Germany ranks last among the 48 jurisdictions assessed. The ranking shows that tax attractiveness depends not only on headline income-tax rates, but also on how countries treat foreign income, wealth, inheritance and people who move abroad.
The findings come from Global Citizen Solutions, which compares jurisdictions relevant to relocation and tax planning. Its 2026 index assesses tax burden, tax structure and investment migration, including routes to residence or citizenship.
Malta and Cyprus lead the European ranking
Malta ranks sixth globally with an overall score of 83, while Cyprus places 10th with 78. Both countries receive strong scores for tax burden and tax structure, each scoring 82 and 63 respectively on those measures.
The report says their positions are driven by preferential regimes rather than exceptionally low headline tax rates. In practice, this means that certain residents may benefit from favourable treatment of foreign-source income, depending on their circumstances and the applicable rules.
Malta also scores highly for investment migration, with a score of 83, compared with 78 for Cyprus. The category considers options available to people seeking residence or citizenship through investment-related routes.
Other leading European jurisdictions include:
- Monaco, with an overall score of 68.6
- Georgia, scoring 68.3
- Bulgaria, scoring 62.8
After the leading European jurisdictions, scores drop below 60 and the countries assessed generally fall outside the global top 20.
Why Germany ranks last
Germany records the lowest overall result in the index, scoring 48th out of 48 jurisdictions. Its weakest area is tax structure, where it receives only 17 out of 100.
The report identifies several factors behind Germany’s position, including the taxation of residents’ worldwide income, inheritance tax and exit-tax provisions that can affect people leaving the country. These features may make Germany less attractive to individuals seeking to relocate internationally or reorganise their tax affairs.
Germany’s result does not mean that every resident or departing taxpayer faces the same outcome. Tax liability depends on residence, income sources, assets, family circumstances and national rules. The ranking is a comparative index, not individual tax advice.
Other low-scoring European countries
Denmark, Spain, France and Norway also rank near the bottom of the European table. Their overall scores are 30.4, 36.9, 37.7 and 38.4 respectively.
The United Kingdom is the next-lowest European jurisdiction after this group, with a score of 50.9. Among Europe’s five largest economies, Italy performs best, scoring 56.9 and ranking ninth in Europe and 26th worldwide.
Switzerland scores 58.2, while the Netherlands records 51.2. Turkey, Hungary, Sweden and Ireland sit in a similar range, with scores of 56.9, 54.9, 54.1 and 53.1 respectively.
Low tax burden does not tell the whole story
The index separates tax burden from tax structure. Tax burden covers personal income tax, capital gains tax on listed securities, net wealth tax and inheritance tax. Tax structure considers the treatment of foreign income and people who leave the country.
Monaco receives Europe’s highest tax-burden score at 93, followed by Bulgaria at 92 and Andorra at 89. Malta and Cyprus both score 82.
At the other end, Spain scores 25, France 26 and Denmark 30. Germany scores 40 on tax burden, despite ranking last overall.
This contrast is central to the report. A country can offer relatively favourable treatment in one area while scoring poorly when its wider tax system is considered. Tax burden and tax structure together account for 85% of the index, with each weighted equally.
Global leaders include the United Arab Emirates
The United Arab Emirates ranks first overall with a score of 82.7. The report highlights its absence of personal income tax, 5% consumption tax and lack of an exit tax as factors supporting its result.
Antigua and Barbuda ranks second with 82.2, followed by Paraguay at 77.2, Hong Kong at 76.9 and the Bahamas at 76.2.
The United States places 46th with 33.5, while Japan ranks 45th with 36.4. Only Denmark and Germany score lower in the index.
Tax advantages do not automatically mean higher quality of life
The report also compares tax-optimisation results with quality-of-life rankings. The comparison suggests that countries offering strong public services and high living standards do not necessarily receive high tax scores.
Sweden ranks second globally for quality of life but 32nd for tax optimisation. Germany ranks third for quality of life and 48th for tax optimisation, while Denmark ranks fourth for quality of life and 47th for tax optimisation. Norway ranks fifth for quality of life and 40th for tax optimisation.
Seven jurisdictions perform relatively well in both areas: Malta, Cyprus, Portugal, Switzerland, Uruguay, Costa Rica and Mauritius. Portugal ranks 23rd for tax optimisation and 11th for quality of life, while Malta ranks sixth and 28th respectively.
None of these jurisdictions has a zero personal income-tax rate. Instead, the report says they use measures such as foreign-income exemptions, special regimes or taxation based on whether income is brought into the country.
What the ranking means for people moving abroad
The results underline why international tax planning requires more than comparing headline rates. People considering relocation may also need to examine:
- How worldwide and foreign-source income is taxed
- Whether capital gains, wealth or inheritance taxes apply
- Rules affecting people who leave the country
- Residence and citizenship pathways
- Access to healthcare, education and other public services
- Double-taxation agreements and reporting obligations
The 48 jurisdictions were selected because of their relevance to relocation and tax planning, rather than their economic size. Anyone considering a move should obtain advice based on their personal circumstances and check current official rules before making decisions.
Overall, the ranking shows that the most attractive tax systems are not necessarily those with the lowest advertised rates. Malta and Cyprus perform strongly because of the way they structure taxation for internationally mobile residents, while Germany’s worldwide-income, inheritance and exit-tax framework contributes to its last-place result. For prospective movers, the wider tax system and quality of public services may matter as much as the headline rate.
