A new global ranking of tax systems for internationally mobile individuals has placed Malta and Cyprus among the most attractive destinations, while Germany finishes at the bottom of the list. The study, compiled by Global Citizen Solutions (GCS), evaluates 48 jurisdictions based on three pillars: tax burden, tax structure, and investment migration—the latter covering routes to residency or citizenship.
Malta and Cyprus, both EU member states, achieved their high positions not through low headline income tax rates, but through preferential regimes that benefit certain newcomers, particularly on income earned abroad. Malta scored 82 out of 100 for tax burden and 63 for tax structure, with an investment migration score of 83. Cyprus matched the tax burden and structure scores but trailed slightly on investment migration with 78. These results place Malta sixth and Cyprus tenth globally.
GCS notes that both countries succeeded “through preferential regimes rather than low headline rates.” Monaco (68.6), Georgia (68.3), and Bulgaria (62.8) round out the top five in Europe. Beyond these, all European scores fall below 60, with global rankings outside the top 20.
Germany's last-place finish
Germany ranks last among all 48 jurisdictions, with a particularly poor score of 17 out of 100 for tax structure—the measure that assesses how foreign income and departing residents are treated. The report highlights Germany's taxation of worldwide income for residents, its inheritance tax, and an exit tax as key factors dragging down its score.
Other European countries also fare poorly: Denmark (30.4), Spain (36.9), France (37.7), and Norway (38.4) sit near the bottom. The United Kingdom scores 50.9, while Italy, the best performer among Europe's five largest economies, reaches 56.9, ranking 26th globally. Switzerland (58.2), the Netherlands (51.2), Turkey (56.9), Hungary (54.9), Sweden (54.1), and Ireland (53.1) occupy the middle range.
The picture changes when examining the three components separately. For tax burden—which includes personal income tax, capital gains tax on listed securities, net wealth tax, and inheritance tax—Monaco (93), Bulgaria (92), and Andorra (89) lead Europe. Malta and Cyprus follow with 82 each. At the other end, Spain (25), France (26), and Denmark (30) have the lowest scores, while Germany, despite its overall last place, scores 40 on this measure.
Tax structure: how foreign income is treated
Tax structure looks at how a country taxes income earned abroad and people who leave. Malta and Cyprus share the highest European score at 63, while Germany has the lowest at 17. Hungary (25), Andorra (26), Estonia (27), and Bulgaria (29) also score low. Turkey, with 29, is classified separately in the report.
GCS emphasizes that a jurisdiction's tax rate and its tax system's structure are largely independent. Tax burden and tax structure together account for 85% of the index, weighted equally.
Globally, the United Arab Emirates leads with a score of 82.7, thanks to no personal income tax, a 5% consumption tax, and no exit tax. Antigua and Barbuda (82.2), Paraguay (77.2), Hong Kong (76.9), and the Bahamas (76.2) follow. At the bottom, the United States scores 33.5 (46th), Japan 36.4 (45th), and only Denmark and Germany rank lower.
But a favorable tax score does not necessarily mean a better place to live. The report cross-references its findings with quality-of-life rankings from the Global Passport Index 2026. Countries that score well on quality of life often perform poorly on tax: Sweden ranks second globally for quality of life but 32nd for tax; Germany third and 48th; Denmark fourth and 47th; Norway fifth and 40th.
However, seven jurisdictions appear in the upper half for tax optimization and the top 50 for quality of life: Malta, Cyprus, Portugal, Switzerland, Uruguay, Costa Rica, and Mauritius. Portugal ranks 23rd for tax and 11th for quality of life, while Malta is sixth and 28th respectively. None of these seven has a zero income tax rate. Instead, they offer favorable treatment of foreign income through exemptions, special regimes, or rules that tax it only when brought into the country. This allows them to attract globally mobile individuals while still raising revenue for public services.
The 48 jurisdictions were selected for their relevance to relocation and tax planning, not their economic size. For those considering a move, the report suggests that a low headline tax rate is not the only factor—how a country structures its tax system matters just as much. As passport strength rankings show, other factors like visa-free travel also influence where people choose to settle.
