Tax Paradises in Europe: Where to Relocate for a Better Tax Environment

Paying high taxes is everyone’s least favorite aspect of having a successful business. Naturally taxation is one of the main factors that individuals and companies consider when deciding where to relocate or invest. Where in Europe can I move in order to benefit from a favorable tax regime? The old continent has several tax havens or paradises that offer optimal schemes, with low or no taxes on personal or corporate income.

Malta

Malta is a small island nation in the Mediterranean Sea that has become a popular tax haven in recent years. The country has a maximum personal income tax rate of 35%, which is one of the lowest tax rates for top earners in the European Union. Beyond this Malta also offers several other tax incentives, including a favorable tax treatment for non-domiciled residents with a flat rate tax of 15%. Moreover, there is no inheritance or wealth taxes, and a complete tax exemption for income which is not remitted to Malta applies (nevertheless, an annual minimum tax of EUR 15,000 must be paid). In addition to these tax advantages, Malta is an attractive destination for its mild Winter climate, beautiful scenery, and rich history; and its central location in Europe’s south makes it a formidable hub in Europe - most EU capitals are available within a 2-3 hour flight.

Malta attracts foreign businesses with its favorable effective income tax rate of 5% for non resident shareholders.

Read about setting up a company in Malta, the Maltese citizenship by investment program and the tax residency program: Global Residence Program.

Cyprus

Cyprus is another popular tax haven in Europe, offering a favorable tax environment for individuals and companies alike. The country has a maximum income tax rate of 35%, but there are several tax incentives available to residents, including a non-domiciled resident scheme that allows individuals to pay no income tax on dividend income. Cyprus also offers a low corporate tax rate of 12.5% and no taxes on dividends, interest, or capital gains. In addition, Cyprus has a strategic location in the eastern Mediterranean, making it an attractive destination for businesses and investors.

Italy

Italy may not be the first place that comes to mind when thinking of tax havens, but the country offers several tax advantages for individuals and businesses. Italy has a maximum income tax rate of 43%, which is higher than some other tax havens, but there are several tax incentives available to residents, including a non-domiciled resident scheme that allows individuals to pay a flat rate of €200,000 per year on foreign income. In addition, Italy has a rich culture, stunning scenery, and a high quality of life, making it an attractive destination for those looking for more than just a tax haven. Read more about how to relocate to Italy through a Golden Visa investment of EUR 250,000.

Portugal

Portugal has become an increasingly popular tax haven in recent years, thanks to its favorable tax environment and high quality of life. The country has a maximum income tax rate of 48%, but there are several tax incentives available to new residents, including its non-habitual resident scheme that allows individuals to pay no taxes on foreign income for their first 10 years in Portugal. Portugal also offers a low corporate tax rate of 21%, no taxes on dividends, clearly a favorable tax treatment for business owners and high-net-worth individuals. In addition, Portugal has a mild climate, beautiful scenery, and a relaxed way of life, making it an attractive destination for retirees and digital nomads.

Moreover, Portugal offers a Golden Visa program which provides a permanent resident permit to non-European Union citizens who invest in Portugal, without the need to take up full-time residency in Portugal. The Portuguese Golden Visa Program offers highly attractive investment opportunities with returns of more than 10% p.a., read how to apply for the Portuguese Golden Visa scheme.

Monaco

Monaco is a small principality on the French Riviera that is famous for its casinos, yachts, and luxury lifestyle. The country is also a popular tax haven, with no income tax for residents and a low corporate tax rate of 33.33%. In addition, Monaco has no wealth tax, no inheritance tax, and no taxes on capital gains, making it an attractive destination for high-net-worth individuals and investors. Monaco is also a beautiful destination, with a Mediterranean climate, stunning scenery, and a high standard of living.

Relocate with Citizen Lane

Europe offers several tax havens waiting to be discovered. Contact Citizen Lane and get professional advice and help during the relocation process. Contact us today.

Last edited: 12th October 2025