WITH endless sunshine, branches of M&S, and tax breaks aplenty, it’s no surprise a tiny European island has been dubbed the “new Dubai” as record numbers of young people flee Labour’s high-tax Britain.
As ex-pats are flocking in their droves for the financial perks, the football mania and a decidedly pro-British culture, we reveal all you need to know about life in this holiday hotspot – from how to get a visa, to its murky criminal underbelly.
Nestled between Italy and North Africa in the central Mediterranean Sea – and just a three hour flight from Keir Starmer’s anti-striver Britain – Malta is now home to 15,000 Brits, roughly 22 per cent of the population, up from 10,000 four years ago.
While Australia, Canada, the USA and New Zealand are still top spots for young Brit expats, sun-soaked European nations offer English-speaking havens with low tax and low crime – and they are closer to home.
Just this week, shocking figures laid bare the mass exodus of young Brits, with 174,000 16-to 34-year-olds leaving the UK in the year to March – accounting for just over two-thirds of total Brits who left the country.
As Labour’s budget raises the tax burden by another £26billion, it will fuel fears that Reeves’ record rises have made Britain unattractive to young people and it’s sparking a new “brain drain”.
Shadow Chancellor, Sir Mel Stride, told The Sun: “Britain is now confronting a dangerous brain drain.
“Many of our brightest young people, teachers, doctors and innovators are looking abroad – and many wealth creators have already left.
“They’re being driven out by Labour’s punishing taxes and policies that suffocate ambition.
“These are the people who power growth and fund our public services, and once they go, they take opportunity with them.
“Rachel Reeves’ Benefits Budget will only see more of the talent Britain relies on lost – perhaps permanently.”
Benjamin Elks from the TaxPayers’ Alliance, said the exodus of talented Brits fleeing “should come as no surprise”.
He blasted Rachel Reeves for creating a “hostile environment through the tax system for anyone who wants to work hard and provide for their family, all to fund a ballooning benefits bill”.
“Ministers need to get a grip on spending and cut taxes to make the UK a welcoming place for enterprise and aspirational Britons,” Mr Elks added.
Even before the budget blow, a poll revealed that one in four Brits aged between 18 and 30 said they could leave the UK – with many blaming the financial strains of Britain.
With year-round sunshine, cities steeped in history, a Mediterranean lifestyle and appealing visas, Malta is proving an attractive solution to escape as Brits’ pockets are ravaged by tax raids.
One of the Brits who has left the UK for Malta is Michael Kitley, 31.
While working as a casino dealer in his hometown of Reading, he applied for a similar job in Malta on a whim in 2016, after meeting someone whose brother worked there.
“I soon received an email scheduling an interview online and five minutes into the chat, I was offered a job, which I accepted without hesitation,” he says.
“I moved over with a couple of suitcases and no place to live and started my job two days later.”
Rachel Reeves’ Benefits Budget will only see more of the talent Britain relies on lost – perhaps permanently
Sir Mel Stride
His plan was to enjoy 12 months of living abroad – but nine years later, Malta is still home for Michael, who met his fiancée there.
And he’s not alone. A British colony from 1814-1964, Malta still enjoys a special relationship with the UK, cooperating in areas including defence, trade and tourism, making it a popular choice for Brits seeking to relocate to the sun.
Queen Elizabeth II even resided there as a young princess – living in Villa Guardamangia on the outskirts of capital city Valletta for two years while Prince Philip was serving in the Royal Navy – and later described it as her “’isle of happy memories”.
Assimilation is easy: the official languages spoken are Maltese and English, cars drive on the left-hand side, and M&S and Next are among the British retailers on the high street.
Once a sleepy outpost, young Brits are drawn by sunny temperatures of 23C, rather than the scorching averages of 40C in Dubai, along with a vibrant youth culture and established expat scene.
The nation also offers a digital nomad visa – already popular in European destinations such as Spain and Italy.
Young Brits just need to prove they have a job or work freelance and earn an annual income of €42,000 (approximately £36,700).
“For British expatriates, Malta is a remarkable destination,” says Tolene van der Merwe, UK & Ireland Director of Visit Malta.
“English is an official language and strong cultural ties remain, including a British-style education, familiar brands, and a shared love for football.
“In addition to the lower cost of living than many UK cities, the quality of life is high with more than 300 days of sunshine a year.”
She added: “After Brexit, British nationals who wish to relocate to Malta must submit a formal application as they are now regarded as third-country citizens, although there are several clear-cut routes.
“Schemes like the Global Residence Programme, which is well-liked for its tax benefits on foreign income but requires a minimum annual tax payment, or the Malta Permanent Residency Programme, which requires a financial contribution and a commitment to buy or rent a property, are options for long-term movers.
“Although the requirements include proving financial stability, having full health insurance, and having a spotless criminal record, the system is set up to accept anyone wishing to settle in Malta.”
The system is set up to accept anyone wishing to settle in Malta
Tolene van der Merwe
And just like in Dubai, which boasts a luxury lifestyle that attracts celebrity visitors for holidays or even, in the case of Rio and Kate Ferdinand, a home, Malta also has a glamorous side.
Countless blockbuster films have been made here, including 2000’s Gladiator, 2004’s Troy and 2022’s Jurassic World Domination, due to Malta’s favourable financial incentives and versatile and scenic locations.
While the retired businessman was sworn to secrecy, Stranger Things star Millie Bobby Brown was spotted filming Enola Holmes 3 on the isle last summer, sharing a wrap photo of a historic building lit up at night.
Influencers have also set up on the island, including Sarah Zerafa – who has 3.4million followers and posts stunning pictures on Malta’s historic streets.
Jade Schembri, 23, also flaunts her glamorous lifestyle with shots at beach clubs and boat trips on the island.
But for many expats, the financial draw is most compelling.
Michael pays €1,500 a month – approximately £1,300 – for the modern, two-bedroom apartment with a sea view he shares with his fiancée.
“I live in the resort town of Sliema, right in the middle of all the action,” he says.
“On one side, you’ve got St Julian’s with all the clubs, bars, and restaurants, and on the other side is the UNESCO World Heritage city of Valletta, so it’s the perfect spot to be in between both.
“We pay €1,500 a month, which is very reasonable for the area and the quality of the apartment.
“In the height of summer, when we have the air conditioning running all day in every room, our electricity bill from July to September was just over €170, plus around €30 for water over two months – surprisingly affordable considering how much we use it.
“And winters are mild, so you don’t need to worry about heating bills like you would back home.”
“Financially, I’m earning a lot more than I was back in the UK, which makes a big difference,” adds Michael, who works in eGaming, an industry which is huge in Malta.
Winters are mild, so you don’t need to worry about heating bills like you would back home
Michael Kitley
“There are also a few nice perks, like the government gives a quarterly bonus of just over €100 and there’s a subsidy on electricity.
“Public transport is free for residents, including buses and a quick ferry service that runs between Sliema and Valletta.”
Malta’s retirement visas offer a flat rate of 15 per cent tax on any income remitted to the country, including pensions.
To qualify, you must purchase a property of at least €275,000 (£240,000) or rent somewhere for €9,600 per year (£700 a month).
You must also be in receipt of a pension that makes up at least 75 per cent of their income.
For Brits who qualify, there is no inheritance, wealth or estate tax to pay and they are offered statutory healthcare too.
Similar visas are available to Brits who have not retired, if they meet the qualifying criteria – bringing many of the tax perks of non-dom status scrapped by Labour earlier this year.
The tax regime in the UK is not favourable to people selling their business so that was definitely a motivation
Neil Jeffery
Neil Jeffery, 61, relocated from the UK in April 2024 after selling his financial firm, which employed 65 people.
“I started a business from scratch and all the tax breaks that were given were gradually being taken away because, I think, the country’s in a terrible state,” he says.
“To be brutally honest, the tax regime in the UK is not favourable to people selling their business so that was definitely a motivation.”
Disillusioned with the UK, Neil had long dreamed of retiring to the sun and says he has easily adapted to life in Malta.
“The people are so pro-British, it’s mad,” he says.
“You drive on the same side of the road and everybody speaks English so for somebody going to live abroad, that makes it so much easier.”
Malta is also famous for its red telephone boxes, similar in style to the UK and like here, they are mostly decorative nowadays.
Tax perks in Malta
Why does Malta appeal to Brit expats? A combination of more than 300 days of sunshine and straightforward tax rules…
- Tax residency scheme offers a flat 15 per cent tax rate on foreign income remitted to Malta
- No inheritance, wealth or estate tax to pay
- No tax on overseas income kept outside of Malta
- Gains from assets outside Malta are exempt from tax even if proceeds are remitted to Malta
- Visa includes access to statutory healthcare
- The UK-Malta Double Taxation Agreement ensures you are not taxed on the same income in both countries
- VAT is set at 18 per cent – slightly lower than in the UK
“It’s easy to find a traditional English breakfast and I’ve even found a few places that serve it with black pudding, which I love,” says Michael.
“You can find plenty of familiar products from UK supermarkets like Iceland and the Co-op, so it’s easy to get your favourites.
“I can still enjoy a proper Sunday roast with all the trimmings with Yorkshire puddings, Bisto gravy, the lot, which is a nice little taste of home.
“One thing that surprised me is how passionate people are about football here.
“There’s a huge rivalry between England and Italy.
“Half the island supports one, half the other, so when both teams reached the Euro 2020 Final, the atmosphere was mad.”
As for the downsides, organised international crime gangs have been linked to Malta, which offers a strategic Mediterranean location attractive to serious criminals looking to smuggle fuel, or traffic drugs or humans.
Its role as the hideout of choice for mafia bosses and henchmen was back in the spotlight in recent years after the death of Daphne Caruana Galizia in 2017 – who was killed in a car bomb in a planned assassination.
She was known for her fearless exposés on organised crime and rampant corruption at the highest levels of government.
The country slipped to its lowest ever place in the international corruption index this year, following a series of unprecedented political scandals which included disgraced former Prime Minister Joseph Muscat facing criminal proceedings in connection with a hospital privatisation scandal.
He denies all charges against him.
An Europol report last year revealed that Italian mafia-style and Georgian criminal networks are some of the most dangerous crime groups in Malta.
Malta is also a transit point for trafficking weapons from Italy to Egypt by criminals, a Global Organised Crime Index report revealed – and threats and public violence are related to blackmail and extortion, Malta Today reports.
Noting a rise in criminal gangs using violence, the report said they “pose a considerable threat”.
It says: “Over the past decade, there have been a series of gangland style assassinations in Malta, and there is a danger that organised crime groups could infiltrate the country from abroad and become established.”
Over the past decade, there have been a series of gangland style assassinations in Malta, and there is a danger that organised crime groups could infiltrate the country from abroad and become established
Global Organised Crime Index
But any mafia-type groups operating here are thought to remain largely invisible to the general population, with the expats The Sun spoke to airing far more minor grievances.
“The driving here is certainly quirky, the locals have their own unique style,” laughs Michael.
“Sometimes I feel like the accelerator is connected to the horn because you hear it so often.”
“You get used to it,” agrees Neil.
From sunshine to financial security, it’s easy to see why Malta is a mecca for Brits looking for the next chapters in their lives.
“It’s a tiny little island, it’s absolutely beautiful and the weather‘s incredible,” says Neil, who socialises at the Royal Malta Golf Club and has bought a boat to explore the island’s clear blue waters.
“The weather is just phenomenal, you don’t get that dreary British cloud cover that stays for days and makes me fed up.”
