Cyprus or Malta: The ultimate comparison
In this comparison, we shed light on the two popular Mediterranean islands of Malta and Cyprus. Find out which destination is most attractive for emigrants, investors and vacationers. We will highlight the most important aspects and factors for you. In this way, we would like to make it easier for you to decide for or against a country with our information. With our overview on the page, you will know whether you would rather have your center of life in Malta or Cyprus. Discover everything that is relevant.
1. General facts about Cyprus & Malta
Cyprus and Malta are both members of the European Union and users of the euro as their official currency. The countries present themselves as two fascinating island states in the Mediterranean with a rich history, a fascinating landscape, churches and cultural heritage. In comparison, they differ, among other things, in these facts:
Criterion | Cyprus | Malta |
Population | Approx. 1.2 million | Approx. 500,000 |
Geographical location | Eastern Mediterranean and intersection between Europe, Asia and Africa | South of Sicily and north of Tunisia in the central Mediterranean |
Cultural influences | Mixture of British, Arab and Italian influences | |
Mediterranean: Hot, dry summers and mild winters, slightly lower temperatures in the Troodos Mountains | Mediterranean: Hot, dry summers and mild winters |
2. Taxes in Malta and Cyprus: Live on the island and increase your quality of life with less money
As countries, Malta and Cyprus both offer inviting tax systems that make them attractive destinations for emigrants and investors. The corporate tax in Malta is officially 35%, but through refund mechanisms this burden can be significantly reduced to up to 0%. In addition, the Non-Dom status promises 0% tax on non-Maltese income, provided it is not transferred to Malta. A Cyprus Limited, on the other hand, offers one of the lowest tax rates in the European Union with a corporate tax rate of 12.5%. This makes the country particularly attractive for international business activities.
In addition, emigrants and investors benefit from an extensive network of double taxation agreements that Cyprus has concluded with over 60 countries. These tax incentives and the strategic location make Cyprus a preferred location for entrepreneurs and companies. Compared to Malta, Cyprus offers a similarly attractive environment with specific advantages that make it particularly interesting for international business people and companies.
Malta | Cyprus | |
General advantages | Malta has established itself as an attractive destination for people who want to benefit from low effective tax rates. The country offers a Non-Dom status, which makes it possible to pay 0% tax on non-Maltese income that is not transferred to Malta. In addition, Malta offers foreign companies a refund of up to 80% of taxes under certain conditions. | Similar to Malta, Cyprus also offers significant tax incentives. The corporate tax rate of 12.5% is one of the lowest in the EU. In addition, emigrants who move their residence to Cyprus and obtain Non-Dom status can benefit from 0% taxation on cryptocurrencies, dividends and interest income. Cyprus also maintains an extensive network of double taxation agreements, which further reduces the tax burden for international business activities. |
Specific tax benefits | In Malta, residents who use the Non-Dom status not only benefit from a 0% taxation on foreign income that is not brought into the country, but also from an advantageous holding model for companies. This model makes it possible to significantly reduce the effective tax burden, which is particularly attractive for international corporations. In addition, there is no inheritance or gift tax, which also makes Malta interesting for asset transfers. | Cyprus, on the other hand, attracts with the Non-Dom status, which makes it possible to receive dividends and interest income tax-free. This applies to both domestic and foreign income, which makes Cyprus particularly attractive for investors and pensioners. In addition, Cyprus offers a high level of security by not transmitting tax data to other countries as long as the tax residence is in Cyprus after taking up residence in Cyprus. In addition, profits from the sale of securities are tax-free for people residing in Cyprus. There are also no inheritance or gift taxes. |
Free Consultation for Relocation to Cyprus
3. Cost of living in both countries: Cyprus vs. Malta
The general cost of living in Cyprus and Malta is an important criterion for emigrants when making a decision. In Cyprus, the estimated monthly costs after emigration for a single household are around €815*, while a family of four can get by with €2,000*. The relatively cheap rental prices, which are around €400* per month for an apartment, are particularly attractive. In addition, residents receive affordable basic internet packages, which start at around €30 to €40* per month. In contrast, concrete figures for Malta are more difficult to find. However, due to its popularity with expats and the limited living space, the island tends to have higher housing and living costs than Cyprus.
However, both countries offer a high standard of living by the sea, which is complemented by their Mediterranean climates, rich cultures and relaxed lifestyles. Cyprus stands out in particular due to its lower living and rental costs. Malta, on the other hand, offers a high quality of life despite the slightly higher costs with a good infrastructure, which is further enhanced by Maltese hospitality and the diverse leisure opportunities. The choice between Malta and Cyprus ultimately depends primarily on individual priorities regarding costs, standard of living and personal preferences. For example, fine sand on the beaches, fascinating rocks, palaces from bygone eras and other sights await you in both countries. How about new hobbies such as diving or snorkeling?
4. Flight connections and airports: Cyprus vs. Malta
Cyprus has two main airports: Larnaca (LCA) and Paphos (PFO). Larnaca serves as the main gateway to the island and is served by a variety of international airlines. It offers direct flights to several destinations worldwide, which significantly increases the accessibility and flight time to Cyprus. The airport in Paphos, although smaller, also serves international flights. It is particularly popular with tourists who want to explore the western parts of the island. There are direct flights from Germany. There is another airport in the Turkish part. In contrast, Malta is primarily served by a single international airport, Malta International Airport (MLA).
It is centrally located near the capital, Valletta, and offers a comprehensive selection of direct flights to European and non-European destinations for residents. Thanks to its central location in the Mediterranean, Malta is easily accessible from many European cities. Therefore, the airport is an important hub for tourists and business travelers.
5. Language: Cyprus vs. Malta
In Cyprus, Greek and Turkish are the official languages, with Greek being predominant in the southern part of the island and Turkish in the northern part. However, English is widely spoken, especially in tourist areas and business circles. By the way: traffic drives on the left on the island. In contrast, Malta has two official languages: Maltese and English. Maltese, the only Semitic alphabet in the EU, holds a central position in Maltese culture, while English is spoken fluently by the majority of the population as a result of the long British colonial history. This bilingualism of the Maltese greatly facilitates integration and communication.
It makes Malta an attractive destination for English-speaking expats and students who do not want to learn a new language to get by in everyday life. Despite the different official languages in both countries, the prevalence of the English language in Cyprus and Malta ensures that language barriers are minimal.
6. Healthcare System: Malta and Cyprus
Cyprus has had a reformed healthcare system called GESY (General Healthcare System) since March 2019, which offers comprehensive medical care for all citizens and resident foreigners. This public health insurance allows access to a wide range of health services. The goal is clear: all residents should have equal access to high-quality healthcare. GESY is financed by contributions from citizens and employers. In addition, there are also private medical services. In contrast, Malta also has a highly regarded national healthcare system, which offers free or heavily subsidized healthcare services to all Maltese citizens and EU citizens working in Malta.
The Maltese healthcare system is often praised for its efficiency and the quality of its services and includes both public hospitals and health centers throughout the country. For non-EU citizens or those seeking additional protection, there are also a variety of international insurance options in Malta. In both countries, such opportunities play an important role for expats and foreign residents. They are considered the first option for these people when looking for additional coverage or special medical services that are not fully covered by the national system. GESY also offers options for private supplementary insurance in Cyprus.
Meanwhile, in Malta, international health insurance policies can bridge the gap between national health services and the specific needs of expats. We are happy to help you find the perfect insurance for you.
7. Expatriate Community on the Islands by the Sea
The expatriate communities in Malta and Cyprus offer unique insights into the way of life and the support networks available to international residents. In Cyprus, there is a growing German community fleeing the ever-increasing obligations to the tax office. In this way, they want to minimize the cost of living and enjoy the sun on the island. In contrast, Malta is characterized by its multicultural composition and has a long history of welcoming expats from various countries. English as an official language greatly facilitates communication and integration and helps international residents settle in quickly.
While Cyprus offers a rich mosaic of nationalities and cultures through its diverse cultural influences and strategic location, Malta scores with its open and welcoming attitude towards foreigners. Both destinations thus offer an attractive environment for emigrants and international people looking for a new home in the Mediterranean.
8. Residence Permit: Cyprus vs. Malta
The processes and requirements for obtaining a residence permit in Cyprus and Malta show both differences and similarities that are important for emigrants. In Cyprus, it is possible to obtain a residence permit through various routes. It depends on the status of the applicant. As an EU citizen:
- You must purchase a property or conclude a lease agreement with a minimum term of 12 months.
- Then you have to apply for the residence permit, the so-called Yellowslip. For this, you need a utility bill as proof of registration. In addition, proof of income of at least €1,000 per month is required.
Non-EU citizens can obtain a permanent residence permit, for example, by purchasing real estate worth at least €300,000. In addition, applicants must prove that they have a secured annual income from outside Cyprus. You should also note additional details. Please contact us if you need further information. Malta also offers several paths to obtaining a residence permit. EU citizens must submit a specific form to the police within the first three months.
For non-EU citizens, the Malta Residence and Visa Programme (MRVP) is of interest. Among other things, this program requires an investment in Maltese government bonds and the purchase or rental of real estate in Malta. In contrast to Cyprus, Malta places a strong focus on investment programs. These are intended to promote the country’s economy and reduce national debt. Despite the differences in the specific requirements and options, both countries share a commonality in the bureaucratic procedure: the need to provide comprehensive documentation proving financial stability and a clean criminal record.
In both Cyprus and Malta, applicants must appear in person at the responsible authorities to submit their applications for a residence permit such as the Yellowslip. The duration of the process can vary, with the efficiency of processing depending on the completeness of the documents submitted and the respective workload of the authorities.
Frequently Asked Questions: Find Answers
Where is it warmer: Cyprus or Malta?
The temperatures in both countries are similar in coastal towns such as Paphos. But Cyprus has a clear advantage! You can escape the particularly high temperatures in summer in the Troodos Mountains.
Is Malta or Cyprus further south?
Malta is geographically further south than Cyprus. While Malta is positioned in the central Mediterranean between Sicily and the North African coast, Cyprus is located further east in the Mediterranean, closer to the coast of Syria and Turkey. This means that Malta is closer to the equator than Cyprus.
Is Malta a beautiful island?
The region and Malta are widely regarded as one of the most beautiful archipelagos to emigrate to. This is underlined by its unique combination of picturesque beaches, historical sites and vibrant culture. The island attracts visitors with its impressive architecture in the capital Valletta, the breathtaking orange-red beaches and steep cliffs, as well as a rich history.
