Malta and Cyprus have a lot in common: both are former British colonies where English is widely spoken, both are EU members using the euro, both drive on the left and both attract remote workers, entrepreneurs and retirees with sunshine and favourable tax. But they differ in size, cost and pace of life.

Cost of living

From our data for Malta and Cyprus:

  • Cost of living index: Malta 62, Cyprus 58 (New York = 100).
  • Average one-bedroom rent: Malta about $1,150, Cyprus about $1,000.
  • Groceries for one: both about $300.
  • Utilities: Malta about $120, Cyprus about $170.

Malta is slightly more expensive, mainly because of rents on a very small, densely populated island. In Cyprus, Limassol is the most expensive city, while Larnaca, Paphos and Nicosia are cheaper.

Digital nomad visas

  • Malta: the Nomad Residence Permit requires at least €42,000 a year. Qualifying remote income is taxed at a flat 10%, with first-year relief under current rules.
  • Cyprus: the digital nomad visa requires net income of at least €3,500 a month. Holders who stay more than 183 days may become tax resident, though Cyprus's regime can still be favourable.

Income tax

  • Malta: single rates from 0% up to €12,000 to 35% above €60,000. Non-domiciled residents are taxed only on foreign income brought into Malta, and foreign capital gains are not taxed.
  • Cyprus: after the 2026 reform, 0% up to €22,000, then 20%, 25%, 30% and 35% above €72,000. New residents earning over €55,000 from Cyprus employment may get a 50% exemption for up to 17 years, and the non-dom regime exempts dividends, interest and rent from Special Defence Contribution for up to 17 years.

Cyprus's €22,000 tax-free threshold is generous for modest earners, while both offer attractive non-dom regimes for wealthier residents. Corporate tax is 15% in Cyprus from 2026; Malta's headline rate is 35%, but refunds to shareholders often reduce the effective rate to around 5%. Get professional advice and try our tax calculator.

Residence by investment

Malta's Permanent Residence Programme involves property, contributions and fees. Cyprus offers fast-track permanent residence for buying new property worth at least €300,000 plus proof of income.

Healthcare

Both have public systems for contributors: Malta's centred on Mater Dei Hospital and Cyprus's GESY. Private healthcare is good in both, and nomad visa holders need private insurance.

Lifestyle and space

Malta is tiny, about 316 square kilometres, and densely built, with heavy traffic and constant construction but everything close by and a lively social scene in Sliema and St Julian's. Cyprus is about 30 times larger, with mountains, villages, vineyards and long beaches, but you need a car. Cyprus has hotter summers inland; Malta is more humid. Cyprus is also politically divided, with crossings open to the north.

Which should you choose?

  • Choose Malta for a compact, social island where English is official and remote income is taxed at a flat rate.
  • Choose Cyprus for more space and nature, a generous tax-free threshold, and strong incentives for high earners and investors.

Compare Malta and Cyprus side by side in our comparison tool.