In this article, I will discuss some of the benefits of Cyprus for living and for tax optimization. I will also share some of the typical cases I see where Cyprus is used in a tax optimization (and also lifestyle optimization) context.

Update (March 2026): Cyprus passed a comprehensive tax reform in December 2025, effective 1 January 2026. The headline change is that corporate tax rose from 12.5% to 15% to align with the OECD Pillar Two minimum. The non-dom regime was preserved and strengthened. I’ve updated this article throughout to reflect the new rules.

Cyprus is known as a nice place; it’s a sizeable island in the Mediterranean, which means you can expect:

1. A beautiful and diverse environment: live and work in a stunning Mediterranean setting, with beautiful beaches, rugged mountains, and picturesque villages.
2. Safe and secure living: Cyprus is known for its low crime rates and high safety standards, making it an ideal choice for remote workers seeking a secure environment.
3. Affordable cost of living: Despite its many attractions, Cyprus maintains a relatively low cost of living compared to other European countries.
4. High-speed internet and modern infrastructure: Cyprus has invested significantly in its telecommunication infrastructure, offering high-speed internet access and reliable mobile networks throughout the island.
5. Rich history and culture: Cyprus boasts a fascinating history, with influences from various civilizations that have left their mark on the island’s architecture, cuisine, and traditions.
6. Strategic location: Cyprus’s geographic position at the crossroads of Europe, Asia, and Africa makes it a convenient base to explore nearby destinations.
7. Warm and welcoming community: Cypriots are known for their hospitality and friendly nature, ensuring a warm welcome for digital nomads.

Beyond being a nice place to live, it has some very interesting tax benefits. Here are some interesting facts about the Cypriot tax code:

1. Corporate tax rate: Cyprus has a corporate tax rate of 15% (raised from 12.5% on 1 January 2026 to align with the OECD Pillar Two minimum), which remains one of the lowest in the European Union.
2. Holding companies: Cyprus is an ideal location for establishing a holding company. Dividend income received by a Cyprus holding company from qualifying subsidiaries is generally exempt from taxes. Additionally, Cyprus does not levy withholding tax on dividend payments to non-resident shareholders.
3. Intellectual property (IP) regime: Cyprus has an attractive IP tax regime that offers an 80% tax exemption on qualifying profits generated from the use, sale, or licensing of IP assets. This results in an effective tax rate of around 3% on IP-related income (up from 2.5% under the old 12.5% corporate tax rate).
4. Double taxation treaties: Cyprus has a wide network of double tax treaties with over 60 countries, which can help minimize tax liabilities by reducing or eliminating withholding taxes on dividends, interest, and royalty payments.
5. No controlled foreign company (CFC) rules: Cyprus does not have any CFC rules in place, making it easier for businesses to establish and manage subsidiaries in other jurisdictions without facing additional tax consequences.
6. Re-domiciliation provisions: Cyprus allows companies incorporated in other jurisdictions to re-domicile to Cyprus, potentially benefiting from the country’s favorable tax regime.
7. No capital gains tax (except for immovable property): Capital gains derived from the sale of securities, such as shares or bonds, are generally exempt from taxation in Cyprus, except for gains derived from the sale of immovable property situated in the country.

Who is Cyprus For?

Given some of the advantages Cyprus offers, these are the most common types of people and setups that involve Cyprus:

• Stock traders and investors
• High Net Worth Individuals (the Non-Dom scheme)
• Corporate setups (15% tax from 2026)
• Digital Nomads

A Haven for Stock Traders and Investors

Cyprus is obviously an attractive location for stock traders due to the absence of taxation on the sale of securities.

This includes shares, bonds, debentures, options, and other financial instruments. Profits realized from trading these securities are exempt from capital gains tax in Cyprus, as long as the income does not arise from the disposal of immovable property situated in Cyprus or from the disposal of shares in companies that own immovable property in the country.

It is important to note that the tax exemption applies to both residents and non-residents of Cyprus. This means that foreign stock traders can also benefit from the absence of capital gains tax on security sales, provided they meet the necessary requirements and comply with relevant regulations. Typically, foreign stock traders can do this by establishing a Cyprus-based company to carry out their trading activities. Since Cyprus does not impose capital gains tax on the sale of securities, any gains derived from the sale of securities (such as shares, bonds, or options) will not be subject to capital gains tax. These tax-free gains would then be included in the company’s net trading profits, which would then be subject to the 15% corporate tax rate.

High Net Worth Individuals – The Non-Dom Scheme

The Cyprus Non-Dom scheme refers to a set of tax incentives designed to attract high-net-worth individuals (HNWIs) and professionals to Cyprus by offering favorable tax treatment for individuals who become tax residents but are considered non-domiciled in the country. The non-domicile status provides substantial tax benefits for those who qualify, making Cyprus an attractive destination for HNWIs and expatriates. This programme is similar to others in place around Europe, the most well-known of which is the Portuguese NHR.

Key aspects of the Cyprus Non-Dom scheme:

1. No tax on dividends and interest income: Non-domiciled individuals are exempt from Special Defense Contribution (SDC) tax, which is levied on dividend and interest income for Cyprus tax residents. This means that non-doms can receive dividend and interest income from both local and foreign sources without being subject to any SDC in Cyprus. Note: as of 2026, domiciled residents now pay a reduced 5% SDC on dividends (down from 17%), but for non-doms the rate remains 0%.
2. No capital gains tax on the sale of securities: As mentioned earlier, Cyprus does not impose capital gains tax on the sale of securities, such as shares, bonds, or options, for both residents and non-residents. This exemption also applies to non-domiciled individuals, making the country attractive for investors and traders.
3. Low personal income tax rates: Cyprus offers competitive personal income tax rates, with progressive rates ranging from 0% to 35%. Non-domiciled individuals can benefit from these rates while enjoying the exemptions on dividends and interest income.
4. 50% exemption for high earners: Individuals who were not Cyprus residents before commencing employment in the country and have an annual income exceeding €100,000 from their employment in Cyprus may be eligible for a 50% exemption on their income for up to 10 years.
5. 183-day rule for tax residency: To become a Cyprus tax resident, an individual needs to spend at least 183 days in the country within a calendar year. Once an individual meets this requirement, they can benefit from the Non-Dom scheme and other tax advantages available to Cyprus tax residents.
6. No inheritance tax: Cyprus has abolished inheritance tax, making it attractive for wealth planning and preservation purposes.
7. Extensive double tax treaty network: Cyprus has double taxation treaties with over 60 countries, which can help minimize tax liabilities on income sourced from other jurisdictions.

How Long Does Non-Dom Status Last?

The SDC exemption applies for 17 years from the date you become a Cyprus tax resident. That is already a long runway compared to most European special regimes.

The December 2025 reform added something new: after the 17-year period, you can extend the non-dom benefits for two consecutive 5-year periods by paying a lump sum of EUR 250,000 per period. This means a potential total coverage of 27 years for those willing to pay the extension fee. It is an unusual mechanism, but it signals Cyprus’s intent to retain established non-dom residents rather than lose them once their initial period expires.

The 60-Day Rule

There is also an alternative tax residency rule, commonly known as the “60-day rule,” which can apply to non-domiciled individuals.

Under the 60-day rule, an individual can become a tax resident of Cyprus if they meet the following criteria in a tax year:

1. Stay in Cyprus for at least 60 days (not necessarily consecutive).
2. Do not reside in any other single country for more than 183 days.
3. Maintain a permanent residence in Cyprus, either owned or rented.
4. Carry out any business or employment in Cyprus or hold an office in a Cyprus tax resident company during the tax year.

If an individual qualifies for Cyprus tax residency under the 60-day rule, they can benefit from the Non-Dom scheme and other tax advantages available to Cyprus tax residents, such as exemptions on dividend and interest income. This rule remains fully in force after the 2026 reform and is one of Cyprus’s most distinctive features — no other EU member state offers anything close to this level of flexibility on minimum presence.

Corporate Setups – 15% Tax (Updated 2026)

Creating a company in Cyprus is an increasingly popular choice for businesses looking to establish a presence in Europe. Cyprus offers a favorable tax system, a strategic location providing access to markets in Europe and the Middle East, and a straightforward company formation process.

The two main types of companies in Cyprus are private limited liability companies and public limited liability companies. Private limited liability companies are the most common and require a minimum of one director and one shareholder, while public limited liability companies require a minimum of two directors and seven shareholders.

From 1 January 2026, Cyprus increased its corporate tax rate from 12.5% to 15% to comply with the OECD Pillar Two global minimum tax framework. This was widely anticipated — the same pressure pushed Ireland, Gibraltar, and others to align at 15%. The headline rate is no longer as low as it was, but the overall package remains compelling when you factor in the non-dom dividend treatment.

For a non-dom shareholder living in Cyprus, the combined effective rate on business profits works out as follows:

• Company profits taxed at 15%
• Dividends paid to the non-dom shareholder: 0% SDC
• No withholding tax on dividends
• Effective total rate: 15% on profits — one of the lowest in the EU for active businesses

That 15% combined rate compares favorably with Malta’s effective 5% (which requires more complex structuring through the refund system) and makes Cyprus arguably the most straightforward low-tax EU jurisdiction for an entrepreneur who is willing to actually live there.

In addition to the corporate tax rate, Cyprus also offers a number of other tax benefits for companies. There is no withholding tax on dividends paid to non-resident shareholders, and no tax on profits from the sale of securities. Cyprus has signed double taxation agreements with more than 60 countries, which can help reduce withholding tax on dividends, interest, and royalties.

Companies investing in research and development can benefit from a tax incentive of up to 50% of their eligible expenses. The IP Box regime, which taxes qualifying IP income at an effective rate of around 3% (80% exemption on the 15% corporate rate), has been retained and aligned with Pillar Two requirements.

Cyprus has a simple and transparent tax system based on OECD principles, which gives companies a stable and predictable tax environment.

The December 2025 Reform: What Changed and What Didn’t

On 22 December 2025, the Cypriot House of Representatives approved the most extensive overhaul of the country’s tax system in over 20 years. Here is a clear summary of what changed:

What changed:

• Corporate tax: 12.5% → 15% (effective 1 January 2026)
• SDC on dividends for domiciled residents: 17% → 5%
• Non-dom extension mechanism introduced: after 17 years, extendable to 27 years (EUR 250,000 per 5-year period)
• IP Box regime updated to align with Pillar Two

What stayed the same:

• Non-dom SDC exemption on dividends: still 0%
• Non-dom SDC exemption on interest: still 0%
• No capital gains tax on securities
• No inheritance tax
• No withholding tax on outbound dividends
• 60-day rule: fully intact
• Double tax treaty network: unchanged

The net effect is that Cyprus absorbed the Pillar Two pressure through the corporate tax increase, while protecting the personal tax advantages that make it attractive for international entrepreneurs. Most other jurisdictions that raised their corporate rates to 15% did not offer anything comparable on the personal side.

Cyprus vs. the EU Landscape in 2026

If you’ve read my Low Tax Europe article, you’ll know I cover the full spectrum of European tax optimization options. My current view is that Malta and Cyprus together represent the strongest combination for entrepreneurs operating in Europe.

Here is the logic:

• Malta: Excellent for corporate structuring. The 6/7 refund system gives a 5% effective rate on trading income. The holding company participation exemption is one of the cleanest in Europe. Malta deferred Pillar Two implementation until 2029, so the existing refund system remains fully available.
• Cyprus: The best place to actually live. 15% corporate tax, 0% dividends for non-doms, 60-day residency rule, no capital gains on securities, no inheritance tax, and now 27-year non-dom coverage with the extension mechanism. For someone who wants an EU base and is not obsessed with staying in one specific city, Cyprus makes a compelling case.

The combination — a Malta trading company with a Cyprus-resident non-dom shareholder — is well-established and widely used. It requires real substance in both jurisdictions, but it is a legitimate, treaty-compliant structure that many international entrepreneurs use.

Portugal used to be the default recommendation for entrepreneurs looking for an EU base with favorable tax treatment. That changed when NHR ended in 2023. Its replacement (IFICI) serves a narrow audience. Cyprus has quietly stepped into that gap.

Digital Nomad Program

Cyprus has also hopped onto the digital nomad bandwagon and launched a digital nomad program aimed at attracting remote workers and fostering a vibrant digital community.

Cyprus’s digital nomad program aims to provide remote workers with a temporary residence permit, allowing them to live and work in the country for up to a year. The program is designed to accommodate freelancers, entrepreneurs, and professionals working for companies based outside Cyprus. The digital nomad visa does not grant the right to work for local companies or offer any additional employment rights.

To be eligible for the Cyprus digital nomad program, applicants must meet the following criteria:

1. Proof of employment or self-employment: Applicants must provide evidence of a work contract with a foreign company or self-employment status as a freelancer or entrepreneur.
2. Minimum income threshold: Applicants must demonstrate a minimum monthly income of €2,000 (subject to change) from their remote work.
3. Valid health insurance: Applicants must possess comprehensive health insurance that covers them during their stay in Cyprus.
4. Clean criminal record: Applicants must provide a certificate of a clean criminal record from their country of origin.
5. Application fee: Applicants must pay a non-refundable application fee.

The Cyprus digital nomad program offers an attractive opportunity for remote workers to embrace a new lifestyle in a beautiful Mediterranean setting. With its modern infrastructure, affordable cost of living, and rich cultural heritage, Cyprus has established itself as one of the more credible digital nomad destinations in Europe.

Conclusion

As we’ve seen, Cyprus can be a very attractive place, especially if you fit into some of the typical cases I outlined above. The December 2025 reform raised the corporate tax rate to 15%, but it also preserved and extended the non-dom regime — which means the overall package for international entrepreneurs is still excellent. At 15% corporate tax and 0% on dividends for non-doms, Cyprus now offers one of the most balanced combinations in the EU.

To get the viewpoint of an expat in Cyprus, you can listen to my chat with Johannes Larsson, a friend of mine who moved to Cyprus from Malta. As always, it’s important to get financial advice from competent people, so if you’re serious about exploring Cyprus as a potential destination for living or opening up a company, contact me and I’ll put you in touch with a good tax lawyer.

Get tax advice on Cyprus setup

Portugal is one of my favorite countries in the world, and it also happens to have a history of offering some of Europe’s most attractive personal tax conditions for entrepreneurs and investors.

The article you’re reading was originally about the Non-Habitual Resident (NHR) programme, which ended on 31 December 2023. If you are researching Portugal for tax purposes, you need to know that the landscape has changed significantly. This article explains what existed before, what replaced it, and who Portugal is still worth considering for in 2025 and beyond.

Portugal still features in my broader guide to low-tax structures in Europe.

The Original NHR: What It Was and Why It’s Gone

The NHR programme was introduced in 2009 as part of Portugal’s strategy to attract skilled professionals, entrepreneurs, and investors. It offered a 20% flat tax rate on Portuguese-sourced professional income and broad exemptions on foreign-sourced income — pensions, dividends, interest, royalties — for a ten-year period.

For over a decade it was one of the most generous personal tax regimes in Europe. It was particularly popular with retirees drawing foreign pensions, passive investors, crypto holders, and anyone running an international business from Portugal.

It worked precisely because the eligibility criteria were wide open: almost any professional in a long list of high-value activities qualified, and foreign passive income was broadly exempt with no questions asked.

That version of Portugal is no longer available. The NHR programme closed to new applicants on 31 December 2023, killed by a combination of domestic political pressure (inequality concerns — wealthy foreigners paying far less tax than Portuguese citizens) and EU-level scrutiny.

If you registered under the original NHR before the cutoff, your status is grandfathered. You keep the full ten-year period under the original terms. Nothing changes for you.

If you have not registered, you are starting from scratch with the new regime.

What Replaced NHR: The IFICI Regime

From 1 January 2025, Portugal introduced a replacement programme called IFICI — Incentivo Fiscal à Investigação Científica e Inovação (Tax Incentive for Scientific Research and Innovation).

It retains some surface similarities to the old NHR: 20% flat tax rate, ten years, foreign income broadly exempt. But the eligibility criteria are dramatically narrower, and that changes everything.

Who Qualifies for IFICI

To be eligible, you must meet all of the following:

1. Not have been a Portuguese tax resident in the previous 5 years (reduced from 10 under old NHR)
2. Never used the old NHR or any other Portuguese tax incentive programme
3. Hold at least a Bachelor’s degree (EQF Level 6 or higher)
4. Fall into one of these specific professional categories:
   • University professors and scientific researchers (certified by Fundação para a Ciência e Tecnologia)
   • Employees of companies where at least 50% of turnover comes from exports, operating in qualifying sectors (manufacturing, IT, R&D)
   • Employees or founders of certified startups (operating less than 10 years, fewer than 250 employees, under EUR 50M turnover, with documented innovation or venture capital backing)
   • Employees of RFAI-qualifying investment companies in industrial, service, or tourism sectors
   • Highly qualified professionals in science, technology, healthcare, and green energy
5. Establish tax residence in Portugal: 183+ days per year or maintain a permanent home

The application deadline is 15 January of the year following the year you establish residency in Portugal.

Who Is Excluded (And This Is the Critical Part)

The old NHR was a catch-all. IFICI is the opposite. The following groups, which were among the most enthusiastic NHR users, do not qualify:

• Passive investors — if your income is dividends, interest, or capital gains from a foreign holding structure, you have no qualifying professional activity under IFICI
• Retirees — pensions are explicitly not covered; the old 10% pension flat rate is gone entirely
• Crypto holders — holding crypto is not a qualifying activity. See the crypto section below for what the tax rules actually look like now
• Freelancers and digital nomads without a qualifying role — unless your work falls within a certified qualifying sector, remote work on its own is not enough
• Entrepreneurs running non-qualifying businesses — if your Malta or Cyprus company does not fit the export/startup/innovation criteria, dividend income from it will not benefit from IFICI

The regime is designed for people who actively contribute to Portugal’s innovation economy. Financial structuring was never its purpose.

How IFICI Compares to the Old NHR

Feature	Old NHR (2009–2023)	IFICI / NHR 2.0 (2025+)
Duration	10 years	10 years
Flat tax rate	20% (high-value activities)	20% (eligible activities)
Foreign income exemption	Broadly exempt	Exempt (except pensions)
Pensions	10% flat rate	Not covered
Eligible persons	Almost anyone in listed professions	Narrow: scientists, tech workers, startup founders, exporters
Prior non-residence required	10 years	5 years
Passive income investors	Qualified	Not qualified
Retirees	Main target group	Excluded
Crypto traders/holders	Qualified	Not qualified (unless in qualifying role)

Crypto Taxation in Portugal After NHR

One of the biggest reasons Portugal attracted crypto-focused individuals under the old NHR was that it offered effectively zero tax on crypto gains. That broad exemption no longer applies to new residents, but Portugal still has one meaningful crypto-friendly rule on the books:

• Crypto held for more than 365 days: Capital gains are tax-free. This exemption survives outside of the NHR/IFICI framework and applies to all Portuguese tax residents.
• Crypto held for less than 365 days: Taxed at a flat 28%.
• Staking, lending, and passive crypto income: Generally taxed at 28%.
• Reporting: Since 2024, all crypto transactions must be declared in the annual tax return (Modelo 3), even if the gains are exempt.

For long-term holders — people who buy and hold for over a year — Portugal remains one of the better places in Europe to be a tax resident. The 365-day rule is a genuine advantage. But the days of blanket NHR exemptions covering short-term trades and staking are over.

Is the Malta + Portugal Structure Still Valid?

In the original version of this article, I described the combination of a Malta company for corporate tax with Portuguese NHR for personal tax as the best structure in Europe for small business owners and online entrepreneurs. That combination worked because Malta’s 5% effective corporate rate meant dividends left the company already lightly taxed, and NHR exempted those dividends in Portugal.

Under IFICI, that logic breaks. You must work in a qualifying professional capacity — passive dividend income from a foreign company does not qualify you for the regime. If you genuinely run a certified startup or work in qualifying tech and also happen to have a Malta holding, you could still use IFICI for your employment income. But the dividend angle — which was the main play for most entrepreneurs — is gone.

If you are an entrepreneur whose income comes primarily from dividends, interest, or investment returns, Portugal is no longer the obvious personal tax home it once was. Cyprus, with its non-dom regime and 60-day residency rule, has emerged as the more compelling alternative for that profile.

Madeira — Still Worth Knowing About

The International Business Centre of Madeira (IBCM) is a special economic zone established by the Portuguese government on the island of Madeira. It operates separately from both the old NHR and IFICI, and its corporate tax benefits remain in place.

The main benefits of the IBCM include:

1. Reduced corporate tax rate of 5% on taxable income for licensed companies — compared to Portugal’s standard 21% — under the current framework running to 31 December 2027
2. Exemption from withholding taxes on dividends, interest, and royalties paid by IBCM-licensed companies to non-residents
3. Exemption from property transfer tax (IMT) and stamp duty on acquisition of real estate for qualifying business activities
4. Exemption from municipal property tax (IMI) on real estate used for qualifying activities
5. Reduced social security contributions for employees: 7.5% instead of the standard 11%
6. Access to Portugal’s double tax treaty network for cross-border transactions

The IBCM has substance requirements, minimum investment thresholds, and job creation targets. It is a legitimate EU-recognized structure, but it requires proper setup and ongoing compliance. If this is of interest, speaking with a Portuguese tax lawyer is the right starting point.

Americans in Portugal: What Changed

The influx of Americans to Portugal — particularly from California — was one of the defining immigration stories of the early 2020s. The NHR’s generous treatment of foreign income, combined with Portugal’s climate, cost of living, and lifestyle, made it a compelling destination for remote workers and early-retirees from the US.

The specific tax calculation has changed for new arrivals since NHR ended, but Portugal’s other advantages remain. Americans considering Portugal still need to account for:

• US tax obligations: US citizens must file an annual tax return with the IRS and report worldwide income regardless of where they live. The US-Portugal double tax treaty and the Foreign Earned Income Exclusion can limit double taxation, but the compliance requirement does not go away.
• FBAR: If you hold foreign financial accounts with an aggregate value exceeding $10,000 at any point during the year, you must file a Report of Foreign Bank and Financial Accounts with the US Treasury.
• FATCA: Foreign financial assets above certain thresholds must be reported on Form 8938.

US citizens considering a move to Portugal should consult with professionals experienced in both US and Portuguese tax law. The interaction between the two systems has always been complex, and it has not become simpler with the end of NHR.

Is Portugal Still Worth Considering?

It depends entirely on who you are.

Yes, Portugal still makes sense if you:

• Work in a genuinely qualifying role — tech, science, a certified startup, or an export-focused company
• Hold crypto long-term (over 365 days) and want one of Europe’s few remaining capital gains exemptions on digital assets
• Want to structure a Madeira company for legitimate corporate tax efficiency
• Value the lifestyle, climate, healthcare, and overall quality of life — because the non-tax case for Portugal is strong on its own terms

Portugal is probably not the right tax move if you:

• Are a retiree drawing a foreign pension
• Are a passive investor living off dividends or interest from a foreign holding company
• Are a crypto trader with a short-term horizon
• Are a freelancer or digital nomad whose work does not fall into a qualifying sector

The honest assessment is that Portugal lost its position as a universal low-tax destination when NHR ended. IFICI is a useful tool, but it serves a narrow audience. For entrepreneurs and investors who no longer qualify, the better conversation is probably about Cyprus, Malta, or Andorra — all of which I cover in my guide to low-tax options in Europe.

If you want to understand exactly where you stand and what your options are, the right next step is to speak with a qualified Portuguese lawyer who can assess your specific situation.

Malta, a small Mediterranean island nation, has become an attractive destination for expats, entrepreneurs, and digital nomads due to its pleasant climate, rich history, and business-friendly environment.

It also happens to be the country where I was born and raised, although I left in my mid-twenties due to several issues that have remained largely unresolved. While I left and am happily living elsewhere, I still consider the island country to be an interesting proposition for expats who want to make a tax optimization move and also experience a different lifestyle than what they are used to.

Malta has become well-known internationally for being a low-tax jurisdiction, although the Maltese themselves pay up to 35% in tax. The reason for the low-tax reputation is that there are a number of attractive programs for individuals and their families considering a move to Malta.

Last updated: March 2026. Malta’s tax and residency landscape is evolving due to EU regulations and global minimum tax initiatives. Consult a qualified tax advisor before making any decisions based on this article.

Let’s do a quick rundown of the programs available.

The Global Residence Programme

The Global Residence Programme (GRP) is designed for non-EU nationals who want to establish their tax residence in Malta. This scheme provides a flat tax rate of 15% on foreign-sourced income remitted to Malta, with a minimum annual tax liability of EUR 15,000. The program is open to individuals who own or rent property in Malta and are not employed in Malta. The program also allows for the tax-free importation of personal belongings and vehicles. In addition, the Malta Global Residence Programme can also be combined with the 6/7 tax refund scheme.

The Malta Retirement Program

The Malta Retirement Program (MRP) is designed specifically for retirees who are looking to spend their retirement years in Malta. It offers attractive tax benefits to individuals who are over 55 years of age, have a stable income from outside Malta, and who are able to meet a minimum annual income requirement. Successful applicants are granted a special tax status that limits their liability to tax only on income received in Malta and income remitted to Malta, with a minimum tax payable of EUR 7,500 per year.

The Residence Program

The Residence Program offers non-EU/EEA/Swiss citizens the opportunity to obtain a Maltese residence permit. Successful applicants are granted the right to live and work in Malta, as well as travel freely within the Schengen Area. The program requires applicants to make a financial contribution to the Maltese government, invest in property or rent a property, and meet other eligibility requirements.

The scheme provides a flat tax rate of 15% on foreign-sourced income remitted to Malta, with a minimum annual tax liability of EUR 15,000. The program is open to individuals who own or rent property in Malta and are not employed in Malta. The program also allows for the tax-free importation of personal belongings and vehicles.

The Highly Qualified Persons Program

The Highly Qualified Persons Program (HQPP) is designed for individuals who hold senior positions in eligible companies in Malta’s financial services, aviation, and gaming sectors. The scheme provides a flat tax rate of 15% on qualifying income, including employment income, fringe benefits, and director’s fees. The program is open to individuals who earn a minimum gross income of EUR 75,000 per annum and have a relevant employment contract.

Citizenship by Investment — Program Closed

Important update: Malta’s citizenship-by-investment programs have been discontinued. The original Malta Individual Investor Programme (MIIP) and its successor, the Maltese Exceptional Investor Naturalisation (MEIN) scheme, were both terminated following a European Court of Justice ruling in April 2025 that found Malta’s investment-based citizenship program violated EU law.

As of April 2025, all donation or investment-based citizenship schemes in Malta are closed. They have been replaced by a Citizenship by Merit framework, which grants citizenship based on exceptional contributions to Malta or humanity in areas such as science, innovation, culture, entrepreneurship, or philanthropy — rather than financial investment. This is a fundamentally different program that is not accessible through financial contribution alone.

Malta Startup Visa Program

The Malta Startup Visa Programme is aimed at non-EU/EEA/Swiss entrepreneurs who want to establish their startup in Malta. This program provides fast-track visa processing and access to a supportive ecosystem of mentors, investors, and other resources. The 6/7 tax refund scheme can also be applied to eligible startup companies that meet certain conditions, such as having at least one director or employee residing and paying taxes in Malta.

Digital Nomad Visa

Malta’s Nomad Residence Permit allows remote workers to stay in Malta for up to one year (renewable up to three additional times, for a total of four years) while working for a company or clients based outside of Malta. To be eligible, applicants must earn at least EUR 42,000 annually (EUR 3,500 per month), provide proof of income from the last three months, have health insurance covering Malta, and hold a clean criminal record. The permit also allows for dependents to accompany the applicant. Applicants must spend at least five cumulative months per year in Malta to maintain the permit.

The program is aimed at attracting remote workers to Malta and encouraging them to spend money on the island while working remotely. It is available only to third-country nationals (non-EU, non-EEA, and non-Swiss citizens).

The FATF Greylisting — Resolved

In 2021, Malta was placed on the Financial Action Task Force (FATF) grey list due to deficiencies in its anti-money laundering framework. This was a significant reputational blow, raising concerns about the country’s financial credibility. However, Malta implemented substantial reforms and was officially removed from the FATF grey list in June 2022, just one year after being listed.

As of 2026, Malta is not listed as a non-cooperative jurisdiction by any major international body. That said, Malta’s tax policies continue to attract scrutiny from EU institutions and international observers concerned about profit shifting and aggressive tax avoidance.

The Impact of Global Minimum Tax (Pillar Two) on Malta

One of the most significant developments for Malta’s tax model is the OECD’s Pillar Two global minimum tax initiative, which establishes a 15% minimum effective tax rate for multinational groups with revenues above EUR 750 million.

Malta’s famous 6/7 tax refund system — which effectively reduces the corporate tax rate from 35% to approximately 5% for non-domiciled shareholders — could be impacted for large multinational groups. If the effective tax rate in Malta falls below 15% after accounting for the refund, top-up taxes may apply under Pillar Two.

In response, Malta has introduced the Final Income Tax Without Imputation (FITWI) regime in 2025, which offers a streamlined 15% corporate tax rate — precisely matching the Pillar Two minimum. Companies must choose between the traditional refund system and the new FITWI regime, and the election is binding for a minimum of five years. Malta has also deferred full implementation of its own Pillar Two domestic top-up tax (QDMTT) until the end of 2029.

For smaller companies that fall below the Pillar Two revenue threshold (EUR 750 million), the traditional 6/7 refund system continues to operate as before, making Malta still very attractive for small and medium-sized businesses.

Negative Perceptions of the Programs

There have been reports of some abuses of these programs, particularly the Malta Residence and Visa Program. Critics have argued that the program has been used by wealthy individuals as a means to buy residency, with some dubbing it a “golden visa” scheme.

Additionally, there have been concerns about the impact of such programs on the local property market. Critics have argued that the influx of foreign buyers has driven up property prices, making it harder for locals to find affordable housing.

Moreover, some people have expressed concern that these programs may be used as a means for tax evasion. While the programs themselves are legitimate and legal, there have been reports of individuals using them to hide assets or evade taxes in their home countries.

Negative perceptions about these programs are also fueled by the fact that they are often associated with the wealthy elite. Some people view these programs as a way for the rich to avoid paying their fair share of taxes and to live a privileged lifestyle while ordinary people struggle to make ends meet.

These criticisms are not necessarily reflective of the programs themselves, but rather the potential for abuse and misuse by some individuals. As with any program or policy, there will always be those who seek to take advantage of it for their own gain.

Moving to Malta – What to Consider

If you’re considering setting up in Malta, this guide will provide you with the essential information to get started.

Residency and Visa Requirements

To set up in Malta, first determine the type of visa or residency permit you require. EU, EEA, and Swiss nationals can live and work in Malta without a visa. However, if you are a non-EU/EEA/Swiss citizen, you may need to apply for a visa or a residence permit, depending on your plans and the duration of your stay. You can find more information on the Maltese Identity Malta Agency website.

Registering a Business

Malta offers a business-friendly environment with various types of legal entities to choose from, such as a limited liability company (LLC), partnership, or sole proprietorship. You will need to register your business with the Malta Business Registry and obtain a tax identification number. Additionally, you may need to apply for specific licenses or permits, depending on your industry.

In my view, Malta remains one of the top places in Europe to register your business. This applies especially to internet-based businesses in particular. You can read my article about setting up companies in Malta for more information.

Banking

Malta has a number of solid banks, although they have become notoriously strict and demanding when opening new accounts. Depending on your situation, you might find that opening a bank account at a Maltese bank is an unnecessarily painful process. If that’s the case, I would recommend using an online bank like Revolut or Wise instead. You can also read the article I wrote on opening bank accounts in Malta.

In fact, I would recommend opening accounts with those two online banks even if you do manage to open a Maltese bank account. It is much easier to transfer money between friends and operate multiple currencies using Revolut and Wise than any Maltese bank.

Taxation

Malta has a progressive income tax system, and tax rates range from 0% to 35%. The country also has an extensive network of double taxation treaties with numerous countries to avoid double taxation. VAT in Malta is set at 18% for most goods and services. It’s essential to understand the tax implications for your business and personal income, so consulting with a local accountant is recommended.

Of course, Malta is also known as a place where expats move to in order to obtain advantageous tax treatment. If you’re interested in exploring that option, I suggest you have a consultation with a Maltese lawyer to see what would work in your situation.

Cost of Living

Malta’s cost of living has risen notably in recent years and is no longer as affordable as it once was compared to other European countries. The cost of food, transportation, and utilities remains relatively moderate, but housing costs have increased significantly — particularly in popular expat areas.

As a rough guide for 2026, a single person should budget approximately EUR 1,550-1,650 per month (including rent), while couples can expect to spend EUR 2,200-2,400 per month. These figures vary considerably depending on location and lifestyle.

Finding a Place to Live

Malta offers various types of accommodations, from apartments to traditional townhouses and villas. Popular areas for expats include Sliema, St. Julian’s, and Valletta. You can search for rental properties on local websites or work with a real estate agent to find a suitable place to live.

Expats can expect to pay around EUR 950-1,600 per month for a one-bedroom apartment in central areas like Sliema, St. Julian’s, and Valletta, with prices varying based on the specific property, amenities, and location within these areas. More affordable options can be found in areas like Birkirkara, Msida, Mosta, and Qormi.

Healthcare

Malta has a high-quality public healthcare system that is free for residents, including EU citizens. Private healthcare is also available, and many expats opt for private health insurance to access a broader range of services and shorter waiting times.

Climate

Malta enjoys a Mediterranean climate, with hot and dry summers and mild winters. The island receives an average of 300 days of sunshine per year, making it an ideal destination for those seeking warm weather year-round. However, summers can be very hot and humid, with temperatures reaching over 30 degrees Celsius. Winters are mild but can be rainy and windy. Overall, Malta’s climate is one of its biggest draws for expats and tourists alike.

Culture and Lifestyle

Malta has a rich cultural heritage, with influences from its Phoenician, Roman, Arab, and British history. The country is known for its stunning architecture, delicious cuisine, and vibrant festivals, such as the Carnival in February and the Isle of MTV music festival in June. Expats can enjoy a variety of activities in Malta, including swimming, hiking, and exploring the island’s historical sites. The island also has a thriving nightlife scene, particularly in areas like St. Julian’s and Paceville.

Networking and Integration

Joining local expat groups and attending networking events can help you connect with like-minded individuals and ease your transition to life in Malta. There are various social and professional networking groups and platforms available to help you establish connections within your industry and the local community.

Safety

Malta is considered a safe country, with low levels of crime and violence. The country has a well-trained police force and a low incidence of terrorism. However, expats should still take precautions to protect their personal safety, such as avoiding isolated areas at night and keeping valuables secure.

Work and Business Environment

Malta has a growing economy, with a focus on financial services, gaming, and tourism. The country has a business-friendly environment, with low corporate tax rates and various incentives for businesses.

Language

Malta has two official languages, Maltese and English. English is widely spoken throughout the country, with most official documents and signs being in English. This makes it an attractive destination for English-speaking expats and businesses. Additionally, many Maltese people speak other languages, such as Italian and French, due to the country’s close proximity to these countries and its history of colonization.

Education

Malta’s education system is modeled after the British system, with schools offering primary, secondary, and tertiary education. There are a variety of schools available, including public, private, and international schools. English is the main language of instruction in most schools, with Maltese also taught as a second language. The University of Malta is the country’s main university, offering undergraduate and postgraduate programs in a range of fields.

In my opinion, the level of education in Malta is good, but not on par with the best international options. The biggest benefit of educating your children in Malta is that you get free schooling in English, which is quite unique internationally if you go outside the big English-speaking nations.

On the other hand, if you’re really after giving the best education to your kids, you will find much better private schooling options abroad. I can personally compare it with the options available in Spain, and to me, there is no doubt that the private schools in Spain, particularly those adopting the American model, are far superior to any option in Malta.

Conclusion

Setting up in Malta can be an exciting and rewarding experience. By understanding the legal requirements, finding suitable accommodation, and building a network, you’ll be well on your way to enjoying all that this Mediterranean gem has to offer.

It can also be a very frustrating experience if you don’t do your research properly and go in with the wrong expectations. Most expats are not prepared for what life on a crowded tiny island, especially if they come from big countries. Making this move can certainly provide some psychological challenges in the adaptation period, so if I had one piece of advice, it would be to find the right people to help you out, and try to make friends as early as possible. A few visits before you make a definite move are also essential, in my opinion.

If you need more specific information, feel free to ask, and I would be happy to help. I can also connect you to my trusted lawyers and other professionals in Malta.

Every winter I travel to Andorra or Spanish ski resorts, and an essential part of my travel gear are snow chains or snow socks.

Here’s my research and recommendations on the subject. When it comes to safety and security, I always go for the best even if it means spending a bit more money. For this purpose, I chose to focus on Michelin’s offerings, as it is a reputable company in the tyre business.

Whichever choice you make, be sure to include long arm-covering gloves and a towel and some wet wipes to help you stay clean when you install the chains. I also recommend having a snow scraper. The Michelin snow scraper is a simple yet effective tool that is designed to remove snow and ice from your car’s windshield and windows. The snow scraper features a sturdy plastic handle with a wide, curved blade that is designed to efficiently remove snow and ice from your car’s windows without scratching the glass.

Ok, let’s get into the options.

Snow Socks – Michelin SOS Grip Evolution

Michelin offers a range of snow socks that are designed to provide additional traction on snow and ice. The snow socks are made from a patented textile material that is highly durable and long-lasting. Here are some of the features and benefits of Michelin’s snow sock range:

1. Easy to Install: Michelin snow socks are easy to install and remove, and they can be fitted in just a few minutes. The snow socks stretch over the tire and are secured in place using a tensioning system that ensures a snug and secure fit.
2. Improved Traction: Michelin snow socks provide improved traction on snow and ice, which can help drivers stay safe and avoid accidents. The snow socks are designed to grip the road surface, providing better traction and stability when driving on slippery surfaces.
3. Quiet and Comfortable: Michelin snow socks are designed to be quiet and comfortable, even at high speeds. They are made from a soft and flexible material that does not create excessive noise or vibration when driving.
4. Durable and Long-Lasting: Michelin snow socks are made from a patented textile material that is highly durable and long-lasting. The material is resistant to tears, abrasions, and punctures, which ensures that the snow socks will provide reliable performance for multiple seasons.
5. Easy to Store: Michelin snow socks are compact and lightweight, which makes them easy to store in the trunk of your car. They come with a storage pouch that can be used to keep the snow socks clean and dry when not in use.

Overall, Michelin’s range of snow socks provides drivers with an effective and convenient solution for driving on snowy and icy roads. They offer improved traction, easy installation, and long-lasting performance, making them a popular choice for many drivers.

I have used their SOS9 grip for my tyres and have been impressed by how easy it is to install them and remove them. Always keep a big bag with you for storing them as they will be dripping wet and very dirty when you take them off. You’ll want to chuck them into a washing machine for a rinse and dry them out before you put them into long-term storage. The fact that they retain a bunch of water in them after you remove them is the main disadvantage, together with their lack of durability/robustness compared to other solutions.

I was able to get both snow socks on within 5 minutes.

However, if you’re going for a quick trip or two once a year, these are the perfect thing to have in your boot to get you out of a tough spot if/when needed.

Price: around €80

Composite Snow Chains – Michelin Easy Grip Evolution

The Michelin Easy Grip Evolution is a type of snow chain that is designed to provide extra grip and traction on snowy or icy roads. It is designed to be easy to install and remove, and it does not require any special tools or equipment.

The Easy Grip Evolution snow chain is made of composite materials and features a central snow grabber that provides additional traction and grip on the road surface. The chains are designed to fit snugly over the tire and are secured in place using a tensioning system that ensures a tight and secure fit.

One of the key features of the Michelin Easy Grip Evolution is its compatibility with a wide range of vehicles, including passenger cars, SUVs, and vans. It is also designed to be durable and long-lasting, with reinforced links and a flexible design that helps to prevent damage to the tire or wheel.

In addition, the Easy Grip Evolution is designed to be easy to store and transport. It comes with a storage case that can be easily carried in the trunk of your car, and it can be quickly installed in just a few minutes.

Snow socks are designed to provide moderate traction on snowy or icy roads, while the Easy Grip Evolution snow chains are designed to provide more significant traction and grip. This makes the Easy Grip Evolution a better choice for drivers who live in areas with more extreme winter weather conditions.

Another difference is their durability. The Easy Grip Evolution snow chains are generally more durable and long-lasting than snow socks, which may wear out more quickly and need to be replaced more frequently.

The Easy Grip Evolution chains will take up more space to store and take longer to install and remove compared to the snow socks, but they also do away with the water retention issue when storing them immediately after use, since they have a much smaller surface area in contact with the road and ice/snow.

For those who are used to snow chains and who make frequent tips to snowy areas, I recommend these over the SOS snow socks, as the latter are meant for emergency situations only rather than regular use.

Price: around €100-120

Michelin Fast Grip

The Michelin Fast Grip is a type of snow chain that is designed to provide additional traction on snowy or icy roads. The Fast Grip is made of a composite material and features a diamond pattern that is designed to provide extra grip and traction on the road surface.

One of the key features of the Michelin Fast Grip is its ease of use. The chains are designed to be easy to install and remove, and they can be fitted to the tire without moving the vehicle. This makes the Fast Grip a convenient solution for drivers who need extra traction but do not want to spend a lot of time installing and removing chains.

Price: around €350-400

Other Considerations When Driving in Snow

If you live in snowy regions, you already know that a 4×4 with winter tyres is the best option. But what about the rest of us? There are many debates online about tyre choices, and whether it’s best to have a FWD or AWD vehicle.

To me, it’s clear that if you visit snowy areas frequently in winter, but actually live in a warmer area, it could be a good idea to equip your car with all-weather tyres. Then you can do away with the chains and there is no further work on your end. Another option is to have a set of winter tyres and another set of summer tyres. This is only an option if you have plenty of storage in your garage and don’t mind the hassle of changing your tyres once or twice a year.

When it comes to FWD vs AWD, while it is clear that AWD is a better option for offroad use and snowy conditions, it is much better to have a FWD vehicle equipped with winter tyres than an AWD vehicle equipped with summer tyres.

So there is no need to sell your FWD to buy an AWD, just decide on what strategy you want to use with tyres or chains and you’re set for your winter fun in the snow.

Whichever setup you have, be prudent on the road as icy and snowy conditions will always have some effect on your car’s handling, and more importantly, you can expect the unexpected from other vehicles, some of whose drivers are encountering these conditions for the first time and might not have equipped their cars in an adequate way.

If you’re thinking of moving to Spain as a young and rich expat, you’ll probably be looking at a few shortlisted locations. Now the word “rich” can mean many things, but I’m using it to define young entrepreneurs, investors, and professionals who have a relatively high income or net worth.

Here’s my view on where to live in Spain if you fit that description, based on what I’ve seen during my time in Spain.

In my experience, people tend to consider the following locations:

• Barcelona (Catalonia)
• Madrid (Comunidad de Madrid)
• Costa del Sol (Andalucia)
• Costa Blanca (Comunidad Valenciana)
• Balearic islands (Islas Baleares)

First, I will explain why I listed them in this fashion.

For Barcelona and Madrid, they are pretty much the only serious destination within their autonomous regions, so I put down the city names directly.

For the two coasts (del Sol and Blanca), expats tend to be a bit more spread out and refer to the names of the coasts when explaining where they live.

For the islands, most expats will be found on Mallorca or Ibiza.

The autonomous region in brackets is important due to the fact that the tax implications differ between each region.

Housing

The best houses I’ve seen were in Madrid, Costa del Sol (look around the Marbella area as an example) and the Balearic islands. Barcelona also has some decent places, but they tend to be extraordinarily expensive and there are relatively few newer builds.

Young couples and families tend to prefer modern housing and there is a dearth of that type of housing in Barcelona due to bad socialist policies in place, among other factors. The city is also constrained by its geography, meaning the suburbs are actually quite distant compared to other cities. You will find decent housing in suburbs like Sant Cugat and Sitges, but you lose the proximity to the city.

Culture

For year-round cultural activities nothing comes close to Barcelona or Madrid. The difference becomes even more apparent in winter, when the other locations in my list become devoid of activity as tourism wanes.

If you value events, conferences and networking opportunities, then again you will want to stick to one of these two cities.

Expat Community

Barcelona wins this hands-down due to the large size of the expat community and its diversity. Other areas tend to be dominated by expats from certain countries (e.g. Germany/UK) whereas in Barcelona you’ll find a mix of people from all over the world.

Madrid is good too from this aspect but the expat community is smaller, especially when considering the type of person I have in mind in this article.

Politics & Taxation

In my opinion, Madrid and Andalucia are the two regions that are doing things the right way politically. They are trying to reduce taxation and encourage investment in the regions, while Barcelona is stuck in socialist hell.

Everyone has their opinion on politics, but regarding taxation the numbers speak for themselves, and show that Madrid and Andalucia are the best places for lower taxation in Spain, although it remains quite high in any case.

Education

If you have kids, and want to find a top international school, but also give your kids a holistic education in terms of sports activities and mixing with many other nationalities and locals, then you want to stick to either Barcelona and Madrid.

You can find some decent schools in the other areas, but you will miss out on the better availability of extra curricular activities and social life that the two biggest cities of Spain offer.

Keep in mind that once your kids turn eighteen and start looking at Universities, they will probably leave Spain and further their education in the US, UK, or the Netherlands. You might want to plan around that if you value living close to your children.

Travel

If you intend to travel a lot, then the best options are clearly Madrid and Barcelona, both of which have highly trafficked international airport. I particularly like the airport in Barcelona, but both are pretty good.

Travel between the two cities is also very convenient via the high speed train connection, which is important if you plan to conduct business in both cities. Madrid is better connected to the rest of Spain through both road and rail, so that’s another consideration if you want to explore Spain or have business all over.

Weather

If weather is very high on your priority list, then Madrid loses out due to its more extreme temperature highs and lows. It also lacks having the sea and the summer lifestyle one associates with coastal areas.

All other cities and areas I mentioned are great, but I would have to put Barcelona top due to its great and balanced weather. Summertime is always great in Barcelona and the Costa Brava, while the winter is not too cold and very pleasant for excursions. You also have several locations for good skiing within 2 hours drive from Barcelona.

The Balearic islands and southern coast of Spain are not my favorite because they tend to be more deserted in wintertime.

Some expats move to the Canary islands due to the great weather in winter, given their location, but in my opinion you would lose out on too many other things to make this a top destination.

Time to Move to Spain?

Spain is a wonderful country to live in as an expat, and has very few rivals worldwide if you seek overall quality of life. It might not be the top in anything, but it does have a bit of everything you need to live a happy life.

The biggest downside is inept politicians and a high level of taxation. This is why many expats are now choosing to move to Portugal instead of Spain. I have noted my thoughts on Barcelona vs Lisbon in a separate article, but in a nutshell, if tax optimisation and English-speaking locals is high on your priorities list, you will want to look at Portugal. For everything else, Spain wins out.

Have you moved to Spain as an expat? Do you agree with my assessment? Happy to continue the discussion in the comments section below.