Gibraltar

A British territory on a rock at the mouth of the Mediterranean: English, the pound, its own tax regime and the Spanish coast half an hour on foot. Rent is high against a tiny housing stock, while income tax rates are below the UK and fuel and goods cost less than in Spain. The Mediterranean climate comes with strong wind: mild winters, hot summers and long border queues in season. Space is scarce, work concentrates in finance, gaming and the port, and many employees live in La Línea next door and cross the border daily.