A new ranking by Global Citizen Solutions (GCS) compares 48 jurisdictions on these factors. Malta and Cyprus lead in Europe, though neither has the lowest headline income tax rate.
The report uses 11 indicators grouped into three categories: tax burden, tax structure and investment migration, which covers routes to residence or citizenship. Together, these produce an overall score. A higher score means more favourable conditions for internationally mobile people.
Tax optimisation means legally arranging one’s finances to reduce the amount of tax owed.
Malta and Cyprus in the top 10
The two European countries that made the top 10 globally, Malta and Cyprus, scored highly because they offer favourable tax treatment to some people moving there, particularly on income earned abroad, rather than simply charging low tax rates.
Malta and Cyprus both scored 82 out of 100 for tax burden and 63 for tax structure. Malta scored 83 for investment migration, slightly ahead of Cyprus on 78. Those scores put Malta sixth overall and Cyprus 10th.
GCS says both achieved their positions “through preferential regimes rather than low headline rates”.
Monaco (68.6), Georgia (68.3) and Bulgaria (62.8) complete the top five in Europe.
After these top-scoring jurisdictions, all European scores fall below 60, with global rankings outside the top 20.
Germany ranks lowest globally
Germany came in last among all 48 jurisdictions. The country scored just 17 out of 100 for tax structure, the measure covering the treatment of foreign income and people leaving the country.
The report points to Germany’s taxation of residents’ worldwide income, inheritance tax and an exit tax as factors behind its low ranking.
Denmark (30.4), Spain (36.9), France (37.7) and Norway (38.4) are also near the bottom of the European ranking.
The next-lowest European score is the United Kingdom’s 50.9, with higher scores indicating more favourable tax conditions for people moving abroad.
Among Europe’s five largest economies, Italy scores highest at 56.9. It ranks ninth in Europe and 26th globally.
Scores for several other European jurisdictions are close, ranging from 58.2 in Switzerland to 51.2 in the Netherlands. Turkey (56.9), Hungary (54.9), Sweden (54.1) and Ireland (53.1) fall within this range.
Monaco, Bulgaria and Andorra rank best for tax burden
The picture changes when the three parts of the ranking are considered separately.
The tax burden score covers personal income tax, capital gains tax on listed securities, net wealth tax and inheritance tax.
Monaco (93), Bulgaria (92) and Andorra (89) have the highest scores for tax burden. Malta (82) and Cyprus (82) follow them.
Spain (25), France (26) and Denmark (30) have the lowest European scores on this measure. Germany, despite ranking last overall, scores 40.
How countries tax foreign income
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.
Germany has the lowest score at 17, followed by Hungary (25), Andorra (26), Estonia (27) and Bulgaria (29). Turkey also scores 29, but is classified separately in the report.
A country can therefore score well on one measure and poorly overall. As GCS puts it: “The central finding is that a jurisdiction’s tax rate and the structure of its tax system are largely independent of one another.”
Tax burden and tax structure together account for 85% of the index, with each weighted equally.
How does Europe compare with the rest of the world?
The United Arab Emirates (UAE) ranks first overall, with a score of 82.7. It has no personal income tax a 5% consumption tax and no exit tax.
Antigua and Barbuda (82.2) comes second, followed by Paraguay (77.2), Hong Kong (76.9) and the Bahamas (76.2).
At the other end of the ranking, the United States scores 33.5 and places 46th. Only Denmark and Germany score lower. Japan ranks 45th, with 36.4.
Does a favourable tax score mean a better place to live?
The report also compares its findings with quality-of-life rankings from the Global Passport Index 2026. Countries that score well for quality of life often fare less well on tax.
Sweden ranks second globally for quality of life but 32nd for tax optimisation. Germany ranks third and 48th respectively, Denmark fourth and 47th, and Norway fifth and 40th.
But the report identifies seven exceptions that rank in the upper half for tax optimisation 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 ranks sixth and 28th respectively.
None of the seven has a zero income tax rate. Instead, the report says they offer favourable treatment of foreign income through exemptions, special tax regimes or rules that tax it only when it is brought into the country. That allows them to attract people moving abroad while still raising tax revenue to fund public services.
The 48 jurisdictions were chosen for their relevance to relocation and tax planning, rather than the size of their economies.