Denmark rose seven places to second in the index rankings, while Belgium was third.
Malta remains the best country in Europe for LGBT+ rights, according to an annual report by ILGA-Europe.
The association said that Malta has maintained the best policies, laws and practices that least discriminate against LGBT+ communities.
The small European Union member state has topped the "Rainbow Europe" chart since 2016.
Denmark rose seven places to second in the rankings ahead of Belgium, which has recently announced plans to ban so-called "conversion therapies" by the end of the year.
Meanwhile, Azerbaijan, Turkey, Russia and Armenia were rated as the worst European countries at protecting LGBT+ rights. Poland, Bulgaria, and Romania were cited as being the worst EU member states for gay rights policies.
The organisation -- made up of 600 rights advocacy groups -- publishes its annual report on gay rights in 49 European countries.
The data for 2022 was released on Thursday at the Rainbow Europe Forum, held in the Cypriot city of Limassol.
"More countries are moving towards equality, recognising and protecting people's lived realities," ILGA-Europe said in their report.