Expatriate Tax Changes in Q3 2026: What Global Mobility Teams Need to Know

As organizations continue to manage international assignments and an increasingly mobile workforce, staying ahead of tax developments remains essential. This autumn, several countries have introduced changes to tax legislation could affect assignment costs and employee net income.

Each quarter, AIRINC’s Data Points share selected findings from our ongoing research and highlight where we are seeing meaningful changes across the markets we track. This quarter’s cost-of-living research was conducted primarily in North America, Central and South America, the Middle East, Africa, Maritime Southeast Asia, and Oceania.

This is the second in our Q3 2026 Data Points blog series. Here's a closer look at the key expatriate tax developments for 2026 and what they mean for global mobility professionals.

Bahrain: No Income Tax, But Higher Employer Costs

Bahrain continues to maintain its long-standing policy of not imposing individual income tax, preserving its reputation as an attractive destination for expatriate employees. However, employers will face slightly higher costs in 2026 due to increased social security obligations. The employer social security contribution rate has increased from 17% to 18%, while the maximum annual employer contribution has risen from BHD 8,160 to BHD 8,640.

Global mobility teams should also keep an eye on a proposed 2% tax on expatriate remittances. Although the proposal has gained support in Parliament, it has been rejected by the Shura Council. Any future progress would require approval through a joint session of the National Assembly, making its implementation uncertain but worth monitoring.

Burkina Faso: Removal of Employment Expense Deduction Increases Taxes

In Burkina Faso, a notable change for 2026 is the elimination of the 20% deduction previously available for employment expenses. Although social security rules remain unchanged, the removal of this deduction effectively increases taxable income and results in higher personal tax liabilities for many employees.

For employers operating tax equalization programs, this change may increase assignment-related costs even without any adjustment to headline tax rates.

Dominica: Social Security Contributions Continue to Rise

Currency movements were also significant during the quarter.

Over a three-month period, AIRINC recorded exchange-rate fluctuations greater than 5% against the U.S. dollar and euro across a range of locations.

Dominica has implemented the latest phase of its scheduled social security contribution increases. The employer contribution rate has increased from 7.75% to 8%, while the maximum employer contribution has grown from ECD 6,510 to ECD 6,720.

Employee contribution requirements and income tax rates remain unchanged, but are scheduled to increase every other year until 2031.

Greenland: A New Jurisdiction for Global Mobility Planning

Greenland joins the AIRINC tax database as a new tax location in 2026, giving mobility professionals access to more comprehensive tax modeling capabilities for assignments involving the territory.

The tax framework includes:

• Municipal tax ranging from 26% to 28%
• National tax of 10%
• Joint municipal tax of 6%
• Mandatory pension contributions of 10%

Organizations considering assignments to Greenland should carefully evaluate the combined impact of these taxes and mandatory pension requirements when estimating assignment costs.

Iran: Higher Top Tax Rates and Social Security Costs

Several significant tax changes took effect with the tax year beginning March 21, 2026. Iran has revised its income tax brackets and increased the top marginal income tax rate from 30% to 35%. At the same time, both social security contribution ceilings and family allowances have increased.

The overall impact is mixed. Lower-income taxpayers may benefit from reduced tax liabilities, while higher-income earners are likely to experience increased taxes and higher social security costs. For expatriate populations that tend to occupy higher compensation bands, assignment cost projections may trend upward.

New Zealand: Incremental Increases Continue

The 2026/2027 tax year began on April 1, 2026, with income tax rates and rebates remaining unchanged. However, several payroll-related changes will modestly increase employment costs. The accident compensation levy increased from 1.67% to 1.75%, with the maximum annual contribution rising from NZD 2,552 to NZD 2,741.

In addition, New Zealand continues its phased increase in default KiwiSaver contribution rates. The default rate rose from 3% to 3.5% on April 1, 2026, and is scheduled to increase again to 4% on April 1, 2028.

While these changes may appear modest individually, they can have a meaningful cumulative impact on long-term assignment budgeting and cost projections.

Venezuela: Modest Tax Relief Amid Ongoing Complexity

Venezuela's tax system continues to rely heavily on two key measures: the Tax Unit Value and the Monthly Minimum Salary. These benchmarks determine tax brackets, deductions, credits, and maximum social security contributions.

For 2026, the Monthly Minimum Salary remains unchanged. The Tax Unit Value, however, was significantly increased from VES 9 to VES 43 in June 2025.

Although social security contributions remain unchanged, income tax liabilities have decreased slightly. Organizations should nevertheless continue to monitor these reference values closely, as future adjustments can quickly affect both employee taxation and employer costs.

Key Takeaways for Global Mobility Teams

One of the most important lessons from the 2026 tax landscape is that assignment costs are influenced by far more than headline income tax rates. Changes to social security ceilings, contribution rates, deductions, pension requirements, and levy structures can materially affect both employees and employers.

Global mobility professionals should consider the following actions:

• Review tax equalization and tax protection calculations regularly to ensure they reflect current rules.
• Monitor social security contribution changes, which can significantly increase assignment costs even when income tax rates remain stable.
• Evaluate tax changes across different income levels, as the impact is often not uniform.
• Incorporate future scheduled changes into assignment planning, particularly for multi-year assignments.
• Maintain vigilance over proposed legislation, such as Bahrain's expatriate remittance tax proposal, which could alter assignment economics if adopted.

As global tax environments continue to evolve, proactive planning and regular policy reviews remain critical to controlling assignment costs and ensuring a smooth experience for internationally mobile employees.