Executive Summary
Heading into 2026, trends such as fiscal “fairness,” political uncertainty, and targeted government interventions are impacting the global mobility landscape. In this shifting environment, mobility professionals must be able to rely on timely, legislation-based data to minimize uncertainty. Accurate tax calculations and cost estimates are vital for effective assignment planning, risk management, and maintaining employee confidence.
Keep reading for an overview of these trends and why they matter to you.
A “Fairness” Reset for Expat Regimes
Some countries are tightening their inpatriate regimes to promote a perception of a “fairer” distribution of the tax burden. In practice, this often means reduced exemptions, lower benefit caps, shorter incentive periods, and/or stricter eligibility, resulting in higher costs for expatriates.
A few key examples:
- United Kingdom: Replacing the long-standing non-domiciled regime with the new Foreign Income and Gains (FIG) system. While Overseas Workday Relief (OWR) remains a key component, with its availability extended from three to four years, a new annual cap now limits tax relief on qualifying employment income.
- Netherlands: Increasing the qualifying salary cap for the 30% ruling benefit in 2026 and planning a reduction in benefits to 27% by 2027.
- Italy: Narrowed eligibility for its inbound concession regime, which continues to impact the tax burden for inbound assignees.
What this means for you: Assignment costs in these locations may be higher than anticipated. Now is the time to revisit cost estimates and ensure your data reflects the latest legislation.
Political Uncertainty and Legislative Disruption
In a time of political fragmentation and economic volatility, legislative stability and traditional processes are not always guaranteed. As a result, anticipated reforms can be delayed, implemented in phases, or revised after initial announcement, making it harder for mobility teams to plan with confidence.
- France: The 2026 Finance Bill faced repeated delays, eventually requiring the use of special constitutional powers to bypass parliamentary deadlock.
- Australia: The government revised previously enacted tax cuts before they took effect, prioritizing support for middle-income earners over original fiscal plans.
Mobility teams that rely on outdated or unverified data could be exposed to costly surprises. Stay on top of legislative changes to plan with confidence.
Defense Funding and Individual Tax Burdens
Rising defense and security costs across Eastern Europe are driving governments to introduce targeted levies impacting individual taxpayers.
- Ukraine: Raised its defense contribution from 1.5% to 5% as of December 2024.
- Estonia: Plans to impose a 2% defense tax from 2026 – 2028.
- Lithuania: Introducing new income tax brackets and thresholds in 2026 to help fund increased defense spending.
For assignees moving in or out of these countries, these changes can impact net pay calculations and cost projections.
Inflation Adjustments and Targeted Relief
Many countries continue to rely on indexation and legislated updates to provide relief to taxpayers to address ongoing inflationary pressures.
For example:
- Germany’s Tax Development Act provides for higher basic allowances and enhanced family benefits in 2026 to increase purchasing power for families.
- The United States continues to rely on its standard indexation approach to increase deductions and thresholds.
Staying Ahead with Equus
The 2026 landscape reflects a convergence of fiscal pressure, political uncertainty, and evolving government priorities. For mobility professionals, that means one thing: the quality and timeliness of your tax data matter more than ever.
Take control with the most comprehensive tax data in the industry.
At Equus, we continuously monitor enacted legislative tax changes across our 155 supported authorities, as well as 72 supported subauthorities in the United States, Canada, and Switzerland. We also perform in-depth annual reviews of every supported authority, along with Swiss cantons and Canadian provinces.
You can rely on Equus for accurate and reliable tax data, empowering you to navigate taxes with confidence, no matter how quickly the rules change.
Next Steps with Equus
Tax is complex, but it doesn’t have to be. Find out how to take control of your global tax compliance with Equus.
- Request a demo to see the Equus Tax Engine in action.
- Contact us to discuss your organization’s mobility challenges and explore tailored solutions.
