Changes in Taxation and Emigration in 2026

In the world of taxation and nation-states, two forces are at work simultaneously.

On the one hand, nation-states tend to grow endlessly, and as they grow, they require ever-increasing amounts of money: more taxes, more control, and more pressure on taxpayers, businesses, and investors.

On the other hand, those same governments compete with one another to attract people, capital, and economic activity.

When you understand how these two opposing forces work, you stop seeing the world as a single system and start seeing it as a vast chessboard where each jurisdiction is a square you can choose to use or avoid.

And that changes everything.

While some countries tighten their conditions to extract more money and expand their control, others improve them to attract talent and capital. The board is not static: it is constantly shifting, and those who stay alert can not only defend their position but improve it. Those who fall asleep, on the other hand, end up suffering a gradual deterioration of conditions in the countries where they operate.

This is, in essence, Flag Theory put into practice.

In today’s article, we’re going to take a look at the changes that have come about in 2026. Let’s get on with it.

Changes in Europe in 2026

Europe remains a continent of stark contrasts. There are countries that have continued to tighten the screws on their taxpayers this year (tax hikes, new reporting requirements, restrictions), but there are also jurisdictions moving in the opposite direction that deserve attention.

As you’ll see below, some countries on the continent continue to offer very competitive conditions, and others have even improved them. The key, as always, is knowing where to look.

Changes in Cyprus in 2026

We begin with changes in a country that is quite interesting for those who want to continue living in Europe, in a Mediterranean setting, and pay very little tax.

Finally, as we previously mentioned in a blog post (Cyprus and its tax reform), Cyprus has approved the most far-reaching tax reform of the past 20 years in 2026. Undoubtedly, the most striking aspect is the increase in the corporate tax rate from 12.5% to 15% effective January 1, 2026, thereby aligning with the OECD’s global minimum. However, the reform goes much further, and overall, I would venture to say that there is more positive news than negative.

A very positive development is the reduction of the Special Defence Contribution (SDC) on dividends from 17% to 5% for ordinary residents.

For non-domiciled residents, the situation remains unchanged; the full exemption from SDC on dividends and interest is maintained.

The 2.65% health contribution (GESY) would continue to be paid up to an annual income threshold of 180,000 euros.

Another change in Cyprus affects personal income tax, where the tax-free threshold has been raised. The tax-free threshold rises from €19,500 to €22,000, and the tax brackets have been adjusted, with the top rate of 35% applying to income exceeding €72,000.

Another development is that there is finally clarity regarding how crypto is taxed in Cyprus. A flat rate of 8% is established on gains from crypto assets. It is not ideal, but at least it offers a defined and relatively competitive framework within Europe. Traditional capital gains (stocks and similar assets) remain outside the scope of personal income tax, with specific exceptions, maintaining Cyprus’s traditional advantage regarding capital gains.

Foreign pensions retain the option of a flat rate of 5% with an annual exemption threshold of €5,000. To this amount must be added the (GESY) of 2.65% that applies to virtually all income except capital gains.

The reform also addresses tax residency rules, but not as initially stated. The 60-day rule has been revised and no longer requires formal proof that one is not a tax resident in another country. In practice, this removes a potential hurdle for those who wish to take advantage of the Cypriot regime but still spend a significant amount of time in another country. Dual residency conflicts are now handled through standard procedures: double taxation treaties and tie-breakers based on center of vital interests, habitual residence, and nationality.

In summary, Cyprus is raising corporate tax to comply with the OECD but is using the reform to improve almost everything else. It remains a very attractive option in Europe.

Changes in the Netherlands in 2026

There has been much discussion about the situation in the Netherlands, and we can certainly say that we are in a period of calm before the storm.

The changes in 2026 are minimal; they simply readjust tax brackets and credits to offset inflation (that deflation of personal income tax that countries like Spain refuse to do). However, what matters is what’s coming next: the statist’s wet dream—tax on unrealized gains.

But let’s start by explaining how taxes work in the Netherlands. There, personal income tax is divided into three separate boxes, each covering its own type of income or assets and operating under its own logic.

Box 1 taxes income from employment and the primary residence —wages, self-employment income, pensions, and the imputed value of one’s primary residence—at a progressive rate reaching 49.5%.

Box 2 taxes dividends and capital gains from significant equity stakes in companies—generally when holding 5% or more—at a rate of 24.5% up to €67,000 and 31% thereafter.

Box 3 taxes investment and savings assets, which are neither primary residences nor significant equity stakes.

Under the current system, a theoretical return on net assets is assumed and taxed at 36%. In other words, the capital gains tax in the Netherlands is actually a tax on fictitious gains—a tax on the mere holding of an asset (cryptocurrency, for example). The effective result is an annual tax of between 0.36% and 2.1% on the asset’s value, depending on what you hold.

The Box 3 tax is highly controversial in the Netherlands because it taxes a fictitious return. The Dutch Supreme Court has ruled on several occasions that the Box 3 system violates the right to property and the principle of non-discrimination under the European Convention on Human Rights, precisely because it taxes a return that the taxpayer has never actually received. If the actual return on your assets is lower than the fictitious return attributed to you by the tax authorities—or even negative—you still pay as if you had earned what the theoretical model says. That is confiscatory in legal terms.

Given this situation, they have come up with no other solution than to start taxing unrealized gains… Let’s take a look.

In February 2026, the Tweede Kamer passed the Wet werkelijk rendement box 3—the “Real Return in Box 3 Act”—which replaces the current system of fictitious returns with a tax on the actual returns from savings and investments: savings accounts, stocks, bonds, funds, crypto, and the like. The flat rate would remain at 36%.

The effective date is set for January 1, 2028, but it still must pass the Senate (Eerste Kamer) and survive any adjustments the new government might impose, so it is not yet finalized.

The design combines two elements. On the one hand, the usual flow-through returns: interest, dividends, and rental income. On the other, the vermögensaanwasbelasting, a tax on increases in the value of assets, including unrealized gains on financial assets—that is, paper gains that are taxed each year even if nothing has been sold.

The current capital exemption is being eliminated and replaced with an annual income allowance of approximately €1,800 per person.

Losses in Box 3 could be offset against future gains without a time limit, with a minimum of €500 required to claim the offset.

However, there are still things that may change.

The most contentious point is precisely the tax on unrealized gains, which creates obvious liquidity issues: paying taxes each year on a capital gain that does not yet exist in cash.

The government itself has acknowledged the controversy and announced that it will review the proposal during its passage through the Senate. Exceptions are already being considered for certain assets—rental properties and stakes in startups, among others—where capital gains would only be taxed upon realization: sale, donation, or emigration.

The 36% rate is the current benchmark, but it could also be adjusted before final approval.

In short, whether you reside in the Netherlands or not, from a tax perspective, what is happening in the Netherlands could mark a turning point. There are many countries that would be delighted to implement a system like the one being designed in the Netherlands. That is why whatever happens between now and 2028 is something that concerns us all. Let’s hope that policymakers finally understand that it is a system that is too complex, unfair, and destructive to capital.

Undoubtedly, for residents of the Netherlands, the current Box 3 system, though imperfect, is significantly more bearable than what lies ahead if the law is approved under its current terms.

Changes in Gibraltar in 2026

In 2026, Gibraltar maintains its classic tax regime (territorial, 15% corporate tax, no VAT), but the International Agreement with Spain severely limits the use of this jurisdiction for Spanish residents or nationals for tax planning purposes.

What we are describing here are not specifically changes for 2026; however, since some clients continue to ask us about this option, I believe it is worth explaining the current situation (which dates back to 2021, when the agreement came into effect).

The International Agreement between the United Kingdom and Spain regarding Gibraltar establishes that any Spanish national who has moved their residence to Gibraltar after March 4, 2019, will be considered, in any case, a tax resident in Spain. Regardless of how many days they spend there.

This is not a presumption that can be rebutted using standard criteria. It is a definitive rule that prevents any Spanish national from becoming a tax resident in Gibraltar while ceasing to be one in Spain.

For non-Spanish nationals who resided in Spain, the situation is also not easy, as Spain will continue to consider them residents for the four tax years following their departure from Spain to Gibraltar, barring very limited exceptions.

That said, the problem is not limited to personal residency. The agreement also affects corporate structures.

Gibraltarian companies with partners or beneficial owners residing in Spain, and whose assets or income are predominantly Spanish, may be reclassified as tax residents in Spain.

This entails paying Spanish corporate tax (25%), fulfilling commercial and accounting obligations in Spain, and being fully subject to the Spanish tax authorities.

How ever, Gibraltar has not disappeared as a useful jurisdiction.

It remains relevant for structures with no Spanish connection. But residents in Spain seeking to optimize their tax situation, the bilateral agreement has effectively neutralized it as a tax residency option and has seriously complicated its use as an option for your business.

Changes in 2026 in Andorra

In 2026, Andorra remains very attractive from a tax perspective (there are no major changes in that regard), but it has clearly tightened access to residency—especially passive residency—and real estate investment. It’s not that they’ve closed the door, as some claim, but they’ve made entry somewhat more difficult.

Law 2/2026 raises the investment requirement for passive residency from €600,000 to €1,000,000 in Andorran assets—debt, financial products, equity in local companies, or real estate.

If the investment is in real estate, each unit must be worth at least €800,000. The goal is to push smaller investors out of the residential market.

There is an alternative route for €400,000 if the capital is allocated to the Fons d’Habitatge or other public housing projects. Less flexibility, but accessible for those with more modest assets.

Another significant change is that the deposit with the AFA (€50,000 per holder, plus €10,000 per dependent in some cases) is no longer refundable. It is no longer a recoverable guarantee at the end of the process. It is a sunk cost from day one.

Finally, Andorra sets annual quotas for new residencies. In 2025, the talk was of a few hundred total permits, and the plan for 2026 is for stricter selection and greater oversight. Quotas are filling up. Processing times are lengthening.

Changes in Estonia in 2026

Regarding Estonia, there were fears that the country would compromise its core principles with the “defense tax,” but ultimately, the Baltic nation decided not to alter the corporate model to avoid losing competitiveness. Parliament rejected the proposal to apply a 2% tax on undistributed accounting profits.

This means that, if you have a company there, in 2026 you will still not pay a single euro as long as the money remains in the company. The only new “bill” is the 24% VAT if you sell B2C services or purchase goods locally, and the higher rate (22%) if you decide to take dividends. The former reduced rate of 14% for recurring dividends is now definitively a thing of the past.

Changes in Bulgaria for 2026

Bulgaria is maintaining (broadly speaking) its 10% flat tax for 2026, both for corporations and individuals, but there are some other changes and details worth noting.

As mentioned, the general corporate income tax rate remains at 10% for SMEs and ordinary companies. The 15% rate you may have heard about—mandated by Pillar Two—would apply only to groups with consolidated revenues exceeding 750 million euros, in accordance with Directive 2022/2523.

Dividends are perhaps the issue that has generated the most confusion in recent months. The 2026 budget draft included an increase in withholding tax on dividends from 5% to 10%. However, this proposal sparked business protests and social mobilization, and the ruling coalition withdrew the measure from the final text.

In other words, the final tax rate on dividends for Bulgarian residents remains at 5%. For non-residents, the withholding rate is 5%. The usual exemptions still apply, of course.

As we mentioned, personal income tax rates have not changed, but there has been an increase in social security contributions. In any case, if you reside in Bulgaria, you would be wise to keep your salary as low as possible.

And one more thing to keep in mind: on January 1, 2026, Bulgaria adopted the euro with automatic conversion at the official rate. Yet another country in Europe losing its own currency.

Changes in Romania in 2026

Romania, while still an attractive option compared to other EU countries, has actually tightened the screws on its taxpayers significantly in 2026.

As of January 1, 2026, the micro-enterprise regime applies a flat rate of 1% on turnover (the 3% rate is eliminated), which, in principle, is good news. However, access to the regime has been significantly restricted, with the revenue threshold dropping to €100,000 annually (last year it was lowered from half a million euros to €250,000, and now it stands at €100,000). The minimum requirement of one employee remains, with a 90-day grace period to fill the vacancy in the event of an employee’s absence. Exceeding the threshold or failing to meet any condition results in a switch to the general corporate tax rate of 16% starting from the same quarter in which it occurs.

In addition, the dividend tax rate rises from 10% to 16% for distributions made on or after January 1, 2026, affecting both individuals and legal entities.

Changes in Spain in 2026

In principle, there are no structural changes this year in Spain; what we do have is an accumulation of adjustments that, when added together—as was to be expected—increase the effective tax burden for a significant portion of taxpayers.

For corporate income tax, the general rate remains at 25%, but there is a one-time relief for small businesses: those with revenue under 1 million euros will be taxed at 23% in 2026. Newly established entities continue to apply a 15% corporate income tax rate for the first two fiscal years.

There is no structural reform to personal income tax (IRPF), but the tax base remains unindexed for inflation, pushing tax brackets upward due to inflation alone. The real tax burden on savings increases: starting in 2025, a 30% tax bracket applies to the portion of savings exceeding 300,000 euros, completing a scale ranging from 19% to 30%.

For the self-employed, the system of contributions based on actual income implemented in 2023 continues to advance. In 2026, the tables will be adjusted upward for the middle and upper brackets, and Social Security is issuing adjustments to contributions for 2024 and 2025 based on actual income, which results in additional amounts due for those who contributed below their actual income during those years.

As for VAT, Spain is the only country in the entire European Union that still does not offer small business owners the option to operate without VAT (VAT exemption scheme) and is facing disciplinary proceedings by the European Commission for failing to transpose the European directive that required it.

The government appears to be working on a draft that would set the threshold below which VAT would not need to be collected or processed at around 85,000 euros in turnover. The VAT exemption scheme will most likely come into effect in Spain in 2027, but as of today, no law has been passed and no timeline has been finalized.

In electronic invoicing, 2026 is a transition year. Verifactu is available, but its use is not yet mandatory. It appears that larger companies will be the first affected by the requirement to use this system, with the rest following in 2027–2028.

Finally, Spain is strengthening data cross-checks on electronic payments and fintech platforms, and the requirement for Form 721 is being consolidated for cryptoassets held abroad with balances exceeding 50,000 euros.

Changes in Portugal in 2026

The most notable development in Portugal is the IRS Jovem. Individuals under 35 who begin working enjoy a full exemption in the first year, 75% from the second to the fourth year, 50% from the fifth to the seventh year, and 25% from the eighth to the tenth year. The exemption is capped at approximately 29,500 euros annually, meaning that for low and middle incomes, the savings are nearly total in the early years, and for high wages, it significantly reduces the effective tax rate, although it does not exempt the entire salary.

As for the IRC (corporate income tax in Portugal) Law 64/2025 sets a path for reducing the general rate from 20% to 17% between 2026 and 2028. However, the “15%” mentioned in many guides is not the target general rate: it is the reduced rate that applies only to the first 50,000 euros of profit for SMEs.

As for the classic NHR, nothing new—it is closed to new applicants. NHR 2.0, officially called IFICI, maintains a flat 20% rate on employment and professional income in Portugal, but with a critical requirement: the company or project must be certified by Startup Portugal, IAPMEI, ANI, FCT, AICEP, or an equivalent body. It is no longer enough to be a consultant or independent engineer.

The most accessible option for returnees (not for people who have never been tax residents in Portugal) is the ex-resident regime (“Programa Regressar”), which offers a 50% reduction in the IRS tax base up to 250,000 euros annually for five years (it covers only employment and professional income; dividends, interest, capital gains, and rental income are taxed under general rules). The good news is that it does not require startup certification or a specific type of work.

Changes in 2026 in Madeira (Portugal)

By the way, something not everyone is clear on. The special tax regime of the Madeira Free Zone, the International Business Centre Madeira (IBC), will continue to offer the option in 2026 to register a company that pays a corporate tax rate of just 5%. This opportunity is available to companies that obtain a license before December 31, 2026.

In any case, for those operating outside the IBC, the regional rate remains competitive: 14.2% compared to 19% on the mainland, with a reduced rate of 11.25% on the first €50,000 of profit for SMEs.

The IBC’s 5% rate is not an unlimited flat rate. The maximum base to which it applies is determined by the number of employees: with one or two workers, the annual limit is €2.73 million; with three to five, it rises to €3.55 million. The maximum threshold is €205.5 million and is available if you have more than 100 employees.

As mentioned, to qualify for this 5% corporate tax rate, you must obtain the IBCM license before the end of 2026. You must hire at least one employee residing in Madeira within the first six months, invest 75,000 euros in fixed assets during the first two years, and genuinely manage the company from the island: office, accounting, and effective administration.

Changes in Malta in 2026

Malta no longer offers a single corporate tax system. In 2026, two corporate tax options will coexist.

The Final Income Tax Without Imputation (FITWI) regime has been available since late 2025 and allows for direct taxation at 15% on profits, without imputation to shareholders or refunds. Anyone switching to this option must maintain it for at least five years.

The classic refund system remains in effect. The 6/7 refund on business income results in a net rate of approximately 5%; the 5/7 refund on interest and passive royalties, around 10%. However, keep in mind that the government has tightened the requirements for economic substance; a paper address is no longer sufficient. For this to work, the company must have a real presence (effective management in Malta and business activity).

Changes in the UK in 2026

The classic non-dom status ended on April 6, 2025; we now have a four-year tax holiday regime with no tax on foreign income. The replacement for non-dom is the FIG regime, which allows you to avoid UK taxation on foreign income and profits for four tax years, even if those funds are remitted to the UK. It has the advantage of applying regardless of your nationality. To qualify, you cannot have been a UK resident for at least ten consecutive years prior to arrival. The downside of using it is that you forfeit the Income Tax personal allowance and the annual exempt amount (this was also the case under the non-dom regime). After four years, the taxpayer reverts to full worldwide taxation like any ordinary resident, with no extensions or additional windows.

For corporations, the standard rate is 25%, with a reduced rate of 19% for companies with profits under £50,000 and marginal relief up to £250,000.

As for crypto, the Cryptoasset Reporting Framework takes effect on January 1, 2026, requiring cryptoasset providers in the UK to identify clients, collect data, and report transactions to HM Revenue & Customs, with international exchange under CARF and CRS. Opacity regarding this asset has disappeared for those operating to or from the UK (this is something we see in many European countries, especially within the European Union).

Changes in Italy in 2026

In Italy, the most notable change for 2026 affects high-net-worth individuals. If you move your residence to Italy on or after January 1, 2026, and wish to apply for the Italian non-dom regime (no taxes on foreign income), you will have to pay a flat tax of 300,000 euros annually, up from 200,000 last year and the 100,000 paid not long ago. Those who had already joined the regime in previous years continue to pay the old amount.

Here we have yet another example of the two forces at play in nations: the one that compels them to offer favorable conditions to remain competitive and attract more people, and the one that leads them to raise taxes once they have attracted enough people to generate more revenue and spending.

Changes in Greece in 2026

Unlike what has happened in Italy, Greece is maintaining its non-dom regime at a cost of 100,000 euros per year (+ 20,000 euros per included family member), making it the most competitive flat-tax option in Europe for people with high foreign income.

As a reminder, this non-dom status is valid for a maximum of 15 years. To qualify, you cannot have been a tax resident in Greece for seven of the eight years prior to your application. You must also invest at least half a million euros in Greek real estate, businesses, or financial instruments within three years. In return, there is no obligation to declare foreign income (total privacy), and taxes on foreign income (whether remitted or not) to Greece would not be covered by the €100,000 flat tax.

Changes in Hungary in 2026

The change in government does not currently appear to be changing anything regarding the country’s tax system. Overall, the country remains quite attractive from a tax perspective.

The most interesting change concerns small businesses and the self-employed: they have expanded access to KIVA, improved the treatment of self-employed individuals who opt for the Hungarian flat tax, and adjusted thresholds to benefit SMEs and micro-enterprises.

KIVA is the alternative regime to CIT for small businesses: a single 10% rate that replaces both corporate income tax and the employer’s social contribution, simplifying the overall tax burden. Since December 2025, the entry threshold has been expanded to include companies with up to 100 employees and 6 billion HUF in revenue or balance sheet total—double the previous limit. Starting in January 2026, the exit threshold rises to 200 employees and 12 billion HUF. The result is that many more companies can enter and remain in the scheme. Additionally, the minimum remuneration required for partners and members drops from 112.5% to 100% of the minimum wage. This reduces the contribution base, allowing for lower payments.

For self-employed individuals under the flat-rate scheme (flat tax, without considering expenses, only turnover counts), the fixed percentage of deductible expenses rises from 40% to 45% in 2026 and will reach 50% in 2027. The VAT exemption threshold rises to 20 million HUF annually, approximately 50,000 euros.

On the other hand, the tax treaty with the United States has still not been renewed, so withholding taxes remain an issue if you reside in Hungary or work through a Hungarian company.

Changes in Lithuania in 2026

In Lithuania, the tax burden has increased moderately, but the structure remains very attractive for SMEs and startups.

The general corporate tax rate rises from 16% to 17% as of January 1, 2026, while small businesses with revenues of up to €300,000 will see their tax rate rise from 6% to 7%. A new benefit for newly established companies with turnover below €300,000 is that they pay no taxes during their first two fiscal years (0% corporate tax). Previously, they were only tax-exempt for one year.

As for personal income tax, there are now three brackets: 20% for income up to approximately €84,000, 25% up to about €140,000, and 32% above that level. Previously, there were only two brackets, one at 20% and the other at 32%.

Changes in Latvia in 2026

Latvia continues to offer deferred taxation on corporate income (just like Estonia), and a 20% tax is only paid when profits are distributed (22% in Estonia).

New for 2026 is an alternative regime available as of January 1 for companies whose shareholders are exclusively individuals. You can choose to be taxed at 15% on the profit you distribute, and, in addition, each partner pays a 6% withholding tax on the dividend received. Undistributed profits remain at 0%, so taxation only applies at the time of distribution. The advantage of this option is that this 6% withholding tax is taken into account in your country of residence and is deducted from the taxes you owe there on the dividend received.

Changes in Poland in 2026

Poland remains a fairly attractive option for 2026. The most significant change is that the VAT exemption threshold for small businesses rises from 200,000 PLN (47,150 euros) to 240,000 PLN (56,580 euros) in annual turnover as of January 1, 2026. Those who do not exceed this limit may choose not to charge or deduct VAT, with simplified formal obligations.

We discussed Poland in great detail in one of our recent articles; you can find it here.

Changes in Montenegro in 2026

From a tax perspective, for the self-employed, SMEs, and individual investors, 2026 brings no changes in Montenegro: the system maintains the 9–15% rate range for personal and corporate income tax, and property tax at 3–15%. The significant change this year concerns the conditions for obtaining and renewing residency, which, although unrelated to taxation, may be worth mentioning here.

Those residing in Montenegro through their own company—whether self-employed or foreign executives—must, starting in 2026, provide proof of tax payments and social security contributions in the country totaling at least €5,000 annually to renew their permit. This is not an additional tax, but rather a test of actual economic activity.

This means that if you maintained a company without payroll or actual tax obligations, you will face the risk of losing the residency associated with your business in Montenegro.

In the case of residency through property ownership, a minimum threshold is being introduced: the property serving as the basis must have a taxable value of at least €150,000. Additionally, renewal requires being up to date on property taxes and demonstrating actual use of the property, so an empty property with no real connection to the country is no longer sufficient.

Changes in 2026 for E-commerce in the EU

Finally, in this section on changes in Europe, we will discuss something that does not affect a specific country, but rather an entire sector within the EU. For dropshippers and Amazon sellers with customers in the EU, 2026 will primarily bring stricter customs regulations for low-value imports from outside the EU.

Starting July 1, 2026, the duty exemption for shipments with a declared value under €150 will disappear. As a transitional measure, a flat duty of €3 per item—per four-digit tariff code within the shipment—will be introduced, meaning a package containing three different product categories would pay €9.

Since 2021, import VAT has already been applied from the first euro, so the new duty directly impacts the margin on small orders.

The reform is reportedly temporary: the final mechanism will come with the EU Customs Data Hub, which is expected to be fully operational in 2028. But “temporary” does not mean optional or reversible in the short term.

On the other hand, the IOSS scheme does not formally change; it remains voluntary, but those who do not use it face more local registrations in each Member State where they sell, more withholding taxes, and more problems. In practice, operating without IOSS is no longer viable for any significant volume.

The EU is consolidating the “deemed supplier” scheme: platforms like Amazon, Temu, or Shein often assume the responsibility of declaring VAT and customs duties on behalf of sellers. This alleviates the administrative burden, but in exchange for higher fees, less flexibility, and near-total dependence on the platform in the sales process.

In summary, what does this mean?

Well, it seems clear that the classic model of selling from China to customers in the EU via cheap individual shipments is doomed. There are two viable alternatives in 2026:

• Importing in bulk to an EU warehouse—whether your own or via a 3PL—using OSS for intra-EU B2C distribution.
• Relying on marketplaces that handle customs procedures, accepting the trade-off of lower margins and greater dependence.

Changes Beyond Europe in 2026

Europe isn’t the only region where the pieces are shifting. Outside the Old Continent, there are jurisdictions that have been on our readers’ and clients’ radar for years, and 2026 has also brought new developments—or the absence of them, which is sometimes just as significant.

In cases where nothing substantial has changed, we will state this explicitly. Not because we have nothing to report, but because we know many of you would wonder if those countries are no longer viable options. That is not the case: stability is also a sign.

Changes in Paraguay in 2026

In 2026, Paraguay introduced a new reporting requirement for transactions involving cryptoassets, but not a tax on crypto. In this regard, general tax rates continue to apply: 10% or 0% if the assets are held abroad.

General Resolution DNIT 47/26 requires annual reporting to the tax authorities of all crypto transactions (buy/sell, crypto-to-crypto, crypto payments, staking, lending, NFTs, etc.) when the annual volume exceeds $5,000, including data on wallets, networks, and transaction hashes.

On the other hand, Paraguay just launched the “Paraguay Investor Pass” in April, a new program that grants direct access to permanent residency (bypassing the two-year temporary residency requirement) in exchange for an investment. The investment is a minimum of $150,000 in approved tourism projects or $200,000 in the Paraguayan stock market or (likely the best option) in real estate projects.

The other residency options still exist and are in fact the better choice for most people, but if someone was planning to invest in real estate in Paraguay anyway, this is a great opportunity that we at Denationalize.me can help with.

Changes in 2026 in the United Arab Emirates

There are no changes regarding taxes; it remains a country with no direct taxes in most cases, with the exception of a 9% corporate tax for companies with over $100,000 in profits and a 5% VAT. Companies must file financial statements.

An interesting change is that, effective immediately, it is possible to open accounts in the UAE remotely for local companies without needing residency (without an Emirates ID).

Changes in Argentina in 2026

One of the flagship projects in Argentina (at least from the perspective of Flag Theory) was the citizenship-by-investment program; however, it was declared unconstitutional and is currently on hold. So, for now, it does not appear to be an option for anyone.

In terms of taxes, following the changes in 2025, there are no major changes in 2026; tax brackets have simply been adjusted for inflation.

For those who are tax residents in Argentina, one of the best options is to opt for the Monotributo, a system where you pay a flat rate of between 5% and 15% of your revenue. You can choose this option with revenue of up to 108 million Argentine pesos (approx. $78,000 USD) and would pay that maximum rate of 15%.

Otherwise, although there have been isolated comments and ideas to attract companies and new residents, Argentina still lacks a special regime that allows people to live there tax-free for at least a period of time.

Changes in Thailand in 2026

In Thailand, you become a tax resident by spending 180 days or more per year there, and in principle, you can obtain a tax certificate as long as you have something to declare (taxes to pay). In practice, it is not straightforward, but with advance preparation, it can be achieved (our associates there have secured this for several clients in 2025).

For anyone who is a Thai tax resident, a rule has been in effect since 2024 requiring the payment of taxes on any foreign income (employment, business, investments) provided the money is brought into Thailand. Before 2024, you were only taxed on foreign income brought into Thailand in the same year it was earned, and in fact, there has been discussion about whether a similar option would be reintroduced, but so far that has not been the case.

In summary, Thailand remains an attractive option, but you will have to pay taxes on money earned and brought into the country during the year of your residence there. Of course, the advantage of this is that, because you pay taxes, it is easier to obtain a tax certificate and utilize double taxation agreements.

Changes in 2026 in the Philippines

In the Philippines, there are no changes at the tax level; as a foreigner, you do not pay taxes on foreign income.

There are changes regarding the options for obtaining visas and residence permits

The most significant structural change affects the Special Resident Retiree’s Visa, known as the SRRV. Starting September 1, 2025, the Philippines will allow individuals aged 40 and older to apply for this visa, whereas the program was previously geared much more toward those over 50. The trade-off is that applicants between the ages of 40 and 49 must make higher deposits.

In the case of the SRRV Classic, those over 50 must deposit $15,000 if they have a pension and $30,000 if they do not. For the new age group of 40 to 49, the deposit rises to $25,000 with a pension and $50,000 without a pension. The minimum required pension is $800 per month for single applicants and $1,000 per month if there are dependents.

On the other hand, there is the 2026 Visa Relief Program. To clarify, this is not a new residency or a standard immigration pathway, but an exceptional measure for foreigners who were stranded in the Philippines due to flight cancellations linked to the conflict in the Middle East. The measure allowed those whose authorized stay had expired as of February 28, 2026, and who could prove they were unable to leave due to the cancellation or interruption of their flight, to remain legally until May 1, 2026, without fines for overstaying or extension fees.

Panama, Nicaragua, Costa Rica

No major changes.

Changes in 2026 in El Salvador

In terms of taxation, El Salvador’s major advantage does not exactly begin in 2026. The relevant change occurred in 2024, when the Income Tax Law was amended to exclude income earned abroad from taxation.

El Salvador already had a territorial tax system, but the 2024 reform made it much clearer that income from foreign sources is not part of taxable income. This is particularly relevant for dividends from foreign companies, capital gains on assets located outside the country, interest, financial returns, and other international investment income.

As for immigration law, there was a reform in 2026. The 2026 immigration reform primarily affects temporary residents. They must remain in El Salvador for at least 90 days per year, either consecutively or cumulatively. This makes the use of temporary residency more flexible for entrepreneurs, investors, or mobile professionals who do not wish to live in the country year-round.

Prior to the reform, a temporary resident could lose their immigration status if they were absent from the country for more than 3 consecutive months or more than 4 cumulative months in the same year.

Changes in Uruguay in 2026

In 2026, Uruguay introduced several significant changes for tax residents there. In summary, we can say that the country is definitively moving away from territorial taxation and adopting worldwide income taxation, but let’s look at the changes in a bit more detail.

The first change concerns taxes on foreign income. Previously, Uruguay only levied income tax on interest and dividends from abroad, at a rate of 12%.

Starting in 2026, this tax applies to nearly all income generated outside the country: rental income from property, gains from the sale of assets, and other capital gains. There are a few specific exceptions, such as rental income from movable property, image rights, and financial derivatives.

The second change affects those who moved to Uruguay seeking tax benefits as new residents.

Until now, there were two options: pay no taxes for 11 years, or pay a fixed rate of 7% indefinitely on foreign income. That second option no longer exists. Starting in 2026, only the 11-year exemption will be available, and upon completion of that period, a reduced rate of approximately 6% will apply for an additional five years.

The third change targets those who hold stakes in companies or partnerships abroad. If that company has more than half of its assets in Uruguay, or if the Uruguayan assets involved exceed approximately USD 5 million, the sale or transfer of that stake is now taxable in Uruguay.

In summary, Uruguay is broadening its tax base and gradually moving away from the principle of territoriality that historically set it apart.

Changes in Brazil in 2026

Brazil has quite a few tax changes in 2026; however, since it is not a particularly interesting country from a tax perspective, we won’t dwell on explaining them. Instead, we will discuss the options for obtaining additional citizenship, especially if you have young children or are planning to have them.

It turns out that Brazil may be one of the most interesting jurisdictions for families seeking a second nationality. There, children under the age of 10 who obtain permanent residency can apply for Brazilian naturalization almost immediately, which subsequently opens up residency and mobility options for the entire family.

Of course (you probably already knew this), Brazil also offers citizenship by birth. In other words, you can take advantage of so-called birth tourism, and if you give birth to your child in Brazil, they immediately acquire Brazilian citizenship.

Changes in Australia in 2026

In this case, we won’t be discussing tax changes either; we’ll just let you know that, for foreigners, it’s possible to live in Australia for years without having to pay taxes on foreign income. In an article we recently wrote, we explain how to do it. You can read about it here: https://denationalize.me/emigrate/tax-free-australia-how-to-legally-live-there-for-more-than-6-months-without-paying-tax-on-foreign-income/

Get started

If you’d like us to help you plan a new chapter in your life—tax-free or with much lower taxes than you pay now, whether for personal or business purposes—you can book a consultation.

On the other hand, if you already know which of the many countries available to you for a freer life will be your next home, we can help you obtain a residence permit—whether temporary or permanent—a Golden Visa, or even acquire new citizenship.

If you’d like more information, contact us.