Malta vs Dubai: An Honest Comparison for Freelancers, Digital Nomads & Entrepreneurs

Picture this: You have a choice to make

You're sitting comfortably at home, and honestly, you're too lazy to cook today. But you're still hungry.

So, you decide to order something using one of those many delivery apps.

But today, for whatever reason, the app only shows two options.

Sushi or Pizza.

Both look interesting on principle, and both look tasty. And you don't really know what you're in the mood for yet.

Sushi:

It's a bit more expensive, more exotic, and somehow feels healthier. But what if it's too spicy? What if the portions are too small? Plus, a lot of the dishes look a bit... different. You're not quite sure if the taste will suit you, even if the quality looks top-notch.

Pizza:

On the other hand, you scroll through the pizzas. They are significantly cheaper. But pizza is greasy and can sit heavy in your stomach. Maybe the pizza isn't even from a real Italian place.

But the pizza delivery is faster.

I'm not going to solve your imaginary dinner dilemma in this article, because pizza and sushi are fundamentally different.

They are as different as day and night—in terms of cultural background, how you eat them, and how they are delivered.

And likewise:

The very concept of the dishes couldn't be more different. Naturally, they stimulate completely different taste buds.

High protein in small bites on one side, and a slice of dough with cheese on the other.

Yet, both can satisfy your hunger.

But we aren't here to talk about food.

Lifestyle, Taxes, Culture: Comparing Dubai and Malta

Both are acceptable countries with favourable tax regimes, but they offer something completely different and present themselves in very different ways.

You can only really compare them based on the facts. But ultimately, you have to decide where to place your order.

Freelancer, Entrepreneur, or Digital Nomad: Malta or Dubai?

I want to compare both countries across the following 8 categories. Please note: This is a high-level comparison for the purpose of this article; I won't be diving into every minute detail.

Better Climate for Expats – Malta or Dubai?

The good news first: There is plenty of sun in both countries.

Both are in the south, and the climate is warm. In summer, Dubai is likely even hotter than Malta, often exceeding 40°C (104°F).

Both countries are located by the sea.

Since Malta is an island and significantly smaller, the humidity in Malta is much higher. However, the temperatures are generally milder than in Dubai.

Geography and Connections to Europe

Dubai is significantly further away from continental Europe, and flight connections can be more limited depending on where you're heading. A flight to Malta takes about three hours from the UK, and there are frequent connections to all major European hubs.

That said:

Whether being close to Europe is a pro or a con is something you have to decide for yourself. You might not even be in Europe when you're reading this.

Immigration and Working in Dubai or Malta

This is, of course, easier in Malta for any EU citizen. You can live and work in Malta from day one. This makes Malta very attractive for a spontaneous move.

For UK nationals post-Brexit, Malta requires a residence permit, though the process is generally straightforward for skilled workers and entrepreneurs. In Dubai, everyone is subject to local immigration regulations; you need a visa and a work permit. It's not the end of the world, but it is an administrative hurdle.

Politics in Malta or Dubai: Does it matter for Expats?

This is an interesting comparison.

We are comparing a monarchy with a democracy.

Dubai is certainly successful partly because there is no opposition.

One man calls the shots.

In Malta, on the other hand, a democratically elected government—overseen by the EU—alternates between the Conservatives (Nationalists) and the Social Democrats (Labour).

To be honest, as an expat, you won't notice much of the politics in Malta.

You won't in Dubai, either.

Expats are needed and courted in both places.

If one were to accuse Dubai of arbitrariness or, say, suppression, one could point to corruption at the political level in Malta. No system is perfect.

However, in Malta, the politics are European, and the administration and law enforcement seem fairer because they are checked by the EU. It comes from a different understanding of governance.

Tax Policy: Which Country is Better?

This is equally interesting for both jurisdictions. Both countries like to present themselves as autonomous when it comes to tax policy.

That is true, but only partially.

In a globalised world, both countries have to be willing to compromise and make concessions to other nations.

If they don't, other countries exert pressure and threaten them with a "Greylist," which is effectively a "Blacklist" for money-laundering states. And when a country is on this list, no "normal" bank has any real interest in doing business with it.

This happened to Dubai. This happened to Malta.

Suddenly, it became difficult to open accounts if you came from Dubai or Malta. It became complicated to transfer money to or from these places. Being a resident in Dubai or Malta could sometimes feel like a curse. That is exactly the pressure the "other countries" wanted to create.

To make it unappealing for residents and expats.

Both Dubai and Malta bowed to the pressure and introduced stricter regulations.

Dubai, as a non-EU country, has fewer "friends" on its side, and not just for tax reasons. Dubai is under external pressure for political reasons as well.

I'm not judging here:

I am simply stating facts.

But regarding the stability of tax policy, it might become more difficult for Dubai in the future because there are so many other political battlegrounds involved.

Tax Rates in Dubai and Malta: Where do you pay more?

In Dubai, you pay 0% tax as a private individual. Recently, Dubai introduced a 9% tax for companies and businesses.

In Malta, the effective corporate tax rate is 5%.

Looking purely at the numbers, Dubai is slightly better.

Administratively, Dubai used to be simpler. But that is now only true for private individuals. A business owner or a corporate entity in Dubai must now also maintain double-entry bookkeeping.

Just like a Malta Limited company—even if the tax is only 5% in Malta.

However:

Let's look 10 years into the future. Let's assume for this example that you are in Dubai as a private individual and pay no taxes.

Let's look at two scenarios from a medium-term perspective regarding a financial or anti-money laundering audit.

Source of Funds. Source of Wealth.

For example, imagine you return home to the UK or elsewhere in Europe and want to buy a house. It doesn't even have to be your home country; it could be any "normal" country.

Scenario A:

Someone who has lived in Dubai for 10 years with EUR 1,000,000 in their account. The bank asks for proof, invoices, tax assessments. You have nothing to show because you never filed taxes.

Scenario B:

Someone who has lived in Malta for 10 years. They only have EUR 950,000 because of the 5% tax. But they can explain and prove the entire origin of their funds with audited accounts and tax returns.

So, don't think too short-term or only about the tax rate.

In the context of anti-money laundering regulations, which will certainly become stricter over the years, having a tax return makes a massive difference.

Culture in Dubai vs. Malta: Islam vs. Christianity

This sounds like a religious war. It's not. It's about the difference between a cultural sphere shaped by Islam versus one shaped by Christianity.

For me, this is by far the biggest difference. In Malta, you feel culturally more at home, whereas in Dubai, you are culturally "tolerated."

I'm not even talking about the limited availability of literature, theatre, art, or poetry.

I'm not even referring to the lack of freedom to demonstrate.

You, like many expats, might not even notice that.

I am talking about "normal" European, Western freedom and liberty.

This might concern women and what they wear in public. But also "Freedom of Speech"—the freedom to say what you think, or at least not having to watch every word you say.

We can certainly talk about alcohol consumption. And I'm not talking about public excesses, but simply having a cocktail on the beach at a picnic or on the street with friends.

Likewise, religious freedom.

You might not really miss it. But just because I suppress something because it is punishable by law doesn't mean I agree with it.

However, and I want to be consistent here:

This cannot be a criticism of Dubai, because you know what you are getting into beforehand.

After all:

As a vegan, I don't go to a steakhouse and then start a discussion about animal welfare just because I suddenly feel called to do so by the menu.

As a German, I found and still find the cultural difference in Malta significant as a foreigner. But in Dubai, that was taken to another level.

I am talking about a world outside the expensive, better, richer "bling-bling" world of Dubai.

Because I cannot and will not compare that; it exists on a completely different (and often superficial) level.

Cost of Living: Malta vs. Dubai

Who wins here? The country with the higher costs? That would clearly be Dubai. Especially since neither country can be self-sufficient and everything must be imported.

And on top of that:

Dubai presents itself as a destination of luxury and prestige. Higher, faster, more expensive, bigger, and more bombastic. And measured by that standard, it is "better" than Malta.

But also significantly more expensive.

For the clientele Dubai wants to attract, that might not be a problem at all.

Conclusion

Comparing Malta with Dubai is like comparing apples and oranges. The differences are obvious, and personal taste will decide.

But surely, your wallet and your own interest in living in a democratic EU country versus an Islamic-Arab monarchy will play a role.

Allow me a personal, subjective comment at the end:

Yes, in Dubai everything is more expensive, better, higher, and more imposing.

But for all these superlatives, Dubai is missing one thing:

A soul.

You cannot buy a soul, nor can you create one artificially.

But in my opinion, the little island in the Mediterranean definitely has a soul. You can feel it.

In Dubai, you feel nothing.