The Mediterranean Tax Haven Luring Britons Abroad
Malta is experiencing a significant influx of British migrants seeking favourable tax conditions and familiar comforts. According to a Times report, the small island nation is becoming a popular alternative for UK expats, offering non-dom-style tax breaks that include a flat 15% rate on income remitted to the country and no capital gains tax.
Familiar Comforts in Sunny Surroundings
Beyond the financial incentives, British residents cite numerous familiar elements that make Malta feel like home. "They drive on the same side of the road, there are red postboxes, HSBCs on the corner and they have Marks & Spencer," one British resident told the Times. This combination of British cultural touchstones and Mediterranean climate creates an appealing package for those looking to relocate.
Growing Local Resentment and Housing Crisis
The influx of wealthy foreigners has sparked significant local discontent. Maltese citizens report being priced out of their own housing market, with the Times of Malta calling for a radical tax overhaul to stop preferential treatment for economic migrants. Local media has highlighted concerns that these new residents "live here and use all our infrastructure but contribute almost nothing, flash their money around and irritate the local Maltese."
Malta, with its history of human habitation dating back to 6500 BC, now faces modern challenges as it balances economic benefits from foreign migrants against the social impact on its local population. The situation raises questions about the ethics of tax havens and their effects on host communities.
