That’s according to Cyprus-based Philippou Law Firm, which conducted an index study to rank the coastal EU countries that offer the best overall quality of life. Each country was scored out of 100 based on six factors: average household spending per person, housing costs as a proportion of household income, personal tax competitiveness, perceived local crime, violence or vandalism, modelled annual sunshine duration, and mean temperature.

Key findings: 

• Croatia ranks first as the best coastal EU country to live in, scoring 76 out of 100. It performs well across all six factors, and has the lowest rate of perceived local crime, violence or vandalism of any country, at 1.4 percent.
• Cyprus comes in fourth place, being the warmest and sunniest country in the list, with a mean temperature of 21.2°C and 4,053 hours of modelled annual sunshine duration per year.
• Romania pulls off a surprise, ranking third overall, ahead of more popular coastal destinations such as Portugal, which rounds out the top 10, and Spain (13th place).
• Bulgaria offers the highest personal tax competitiveness score, scoring a perfect 100 out of 100.

Those who love sunshine should consider Cyprus, which takes fourth place with a score of 75.52. It is the warmest and sunniest country in the study, with a mean temperature of 21.2°C and 4,053 hours of modelled annual sunshine duration per year. Housing is among the most affordable too, with costs accounting for just 10.9 percent of household income, the lowest in the entire index. 

 Nikolas Avgousti, associate, Philippou Law Firm, commented, "Relocating to a new country is one of the most significant decisions a person can make, yet the tax implications can be one of the most overlooked aspects. While salary and cost of living are of course important, the rate and simplicity of personal taxation can make a dramatic difference to how far your income stretches, and it's something people often don’t think about until they've already made the move.(…)”

 He added, “Cyprus’ strong performance in the ranking is also particularly important. Although Croatia takes the top spot overall, Cyprus stands out as the warmest and sunniest country in the study, while also recording the lowest housing-cost-to-income ratio in the index. For individuals, entrepreneurs and remote workers considering relocation, Cyprus can offer a very attractive balance of lifestyle, climate, accessibility, and tax planning opportunities. 

 Avgousti concluded, "On the other hand, countries ranking at the bottom, such as Germany, score poorly for personal tax competitiveness. That said, relocation should never be considered only from a lifestyle perspective. Issues such as tax residence, domicile status, social insurance, banking, family planning and long-term structuring can materially affect the outcome. This is why obtaining proper advice before relocating is essential, especially for internationally mobile individuals who want to make the most of what Cyprus and other European jurisdictions can offer."