Q.1 2026

Data Points

A Selection of AIRINC Research Results

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.

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Housing Update

Snapshots of expatriate-quality rental markets around the world

Abuja, Nigeria

Adelaide, Australia

Colombia

Luanda, Angola

Lagos, Nigeria

Nairobi, Kenya

Port Moresby, Papua New Guinea

Nigeria country in blue

Abuja, Nigeria

In Abuja, the rental market has strengthened notably over the past six months with clear upward movement across many districts. Feedback from local contacts highlighted intense demand amid a constrained supply of quality housing. Prime neighborhoods are seeing the highest increases for expatriates. Recent reports also highlight a tightening market, with affordability concerns and limited new supply shaping current rental trends.

Australia country in blue

Adelaide, Australia

Adelaide’s expatriate rental market has been rising sharply, mainly due to very limited supply and strong demand from both local renters and incoming expatriates. With extremely tight vacancy rates and only modest new development underway, competition remains intense, particularly in coastal areas, the Central Business District (CBD), and North Adelaide. While there are seasonal slow periods, demand consistently rebounds and constrained supply continues to be the key driver behind ongoing rental increases.

Colombia

Rents have increased, particularly in major cities such as Medellin and Cali. Growing demand, urban development, and a booming new luxury sector, in addition to a limited expatriate-appropriate housing supply have pushed rents upward, especially in neighborhoods popular with professionals and expatriates.

Angola country in blue

Luanda, Angola

In Luanda, rents have risen mainly due to sustained demand for larger apartments and stand-alone houses within expatriate-focused compounds where availability remains very limited. Smaller units have been more stable, but rents in the premium segment continue to climb as there is very little new construction. Most new housing supply does not meet expatriate standards. With stable vacancy rates and limited expansion in key expatriate areas, tight supply in quality housing is the primary driver keeping rents on an upward path.

Nigeria country in blue

Lagos, Nigeria

In Lagos, rents in expatriate areas have risen sharply over the past several months. Ikoyi and Banana Island have seen the strongest growth and remain the most desirable locations. Demand continues to increase, but limited land and constrained supply are keeping availability tight. Most new development involves replacing older single-family homes with high-rise three-bedroom apartments, while construction costs remain elevated across the market.

Kenya country in blue

Nairobi, Kenya

Rents are up in Nairobi mainly due to steady demand for houses from expatriates and international development professionals relocating to the city. While there is an oversupply of apartments, the limited availability of quality houses, especially in areas like Westlands and Kilimani, has kept upward pressure on rents. Ongoing demand from families connected to the international school continues to support the market. Despite some election-related caution, conditions remain stable with sustained interest in mid-level and luxury expatriate housing.

Port Moresby, Papua New Guinea

Over the past six months, long-term expatriate rental prices in Port Moresby increased as demand from multinational companies in the energy, mining, and infrastructure sectors has strengthened. The supply of high-quality housing remains limited due to land constraints, high construction costs, and slow development pipelines, meaning only a small number of properties meet corporate security and lifestyle standards. This imbalance between rising corporate demand and restricted supply has tightened the high-end rental market, pushing long-term expatriate rents higher over the past six months.

Goods and Services Update

Highlights from AIRINC’s in-depth research
Spotlight on: Syrian Pound

Syria has introduced a new national currency as part of a major monetary reform aimed at simplifying transactions and restoring public confidence after the collapse of its previous currency. The reform removes two zeros from the old Syrian pound, with the new currency entering circulation at the start of 2026. Officials describe the change as a practical step to ease daily payments, improve cash circulation, and stabilize financial systems after years of conflict, inflation, and economic strain. The government views this reform as part of a broader economic strategy designed to strengthen financial institutions, update regulatory frameworks, and bring currency circulating outside formal banks back under state oversight.

Goods and Services Inflation

Selected locations with inflation higher than 5% for 6 months
Argentina
Bolivia
Cuba flag
Cuba
Democratic Republic of Congo
Haiti
Iran flag
Iran
Malawi
Sao Tome And Principe flag
Sao Tome and Principe
Somaliland flag
Somaliland
South Sudan flag
South Sudan
Sudan
Syria flag
Syria
Venezuela Flag
Venezuela
Yemen flag
Yemen

Selected 3-month Exchange Rate fluctuations of more than 5%

Australia

Currency: AUD

Change vs EUR: 7.8%

Change vs USD: 6.7%

Botswana

Currency: BWP

Change vs EUR: 10.4%

Change vs USD: 9.4%

Egypt

Currency: EGP

Change vs EUR: -6.2%

Change vs USD: -7.2%

Ghana

Currency: GHS

Change vs EUR: 6.6%

Change vs USD: 5.6%

Iran

Currency: IRR

Change vs EUR: -96.8%

Change vs USD: -96.8%

Kiribati

Currency: AUD

Change vs EUR: 7.8%

Change vs USD: 6.7%

Libya

Currency: LYD

Change vs EUR: -13.9%

Change vs USD: -14.6%

Madagascar

Currency: MGA

Change vs EUR: 7.5%

Change vs USD: 6.5%

Nauru

Currency: AUD

Change vs EUR: 7.8%

Change vs USD: 6.7%

Syria

Currency: SYP

Change vs EUR: 10009.4%

Change vs USD: 9909%

Tanzania

Currency: TZS

Change vs EUR: -4.7%

Change vs USD: -5.4%

Tuvalu

Currency: AUD

Change vs EUR: 7.8%

Change vs USD: 6.7%

Venezuela

Currency: VES

Change vs EUR: -40.9%

Change vs USD: -41.4%

Zambia

Currency: ZMW

Change vs EUR: 20.6%

Change vs USD: 19.4%

Country
Tax Update

Changes in expatriate tax

Belgium

Denmark

Finland

Greece

Japan

Netherlands

United Kingdom

Belgium

Inflation-indexing has been applied to deduction maximums, the spousal income splitting amount, tax credits based on family size, other credits, family allowances, and tax brackets. The top marginal tax rate remains at 50%. Social security is unchanged. The net effect is a small reduction in tax which varies by income level and family size.

Belgium has reformed the expatriate regime, retroactively effective from 2025, making the expatriate tax concession substantially more beneficial for qualifying expatriate employees. Under the new expat regime, qualifying individuals may claim an exclusion of 35% of gross income uncapped, compared to the previous regime that used an exclusion of 30% that was capped up to a maximum salary of EUR 90,000. The new expatriate tax concession also applies to social security contributions. The reduced minimum threshold for qualifying salary under the new regime is at least EUR 70,000.

Denmark

Denmark has enacted tax reforms targeting lower and middle incomes with tax relief.  The former 15% “Top Tax” has been replaced with a National Tax – a progressive tax schedule ranging from 7.5% to 20%. Certain deductions have been enhanced. The state tax (known as the “Bottom Tax”) rate remains unchanged at 12.01%. The local Copenhagen tax rate has decreased from 23.5% to 23.39%. The net overall effect is a decrease in income tax for most income levels. The salary threshold for the Danish expat ruling has been reduced to DKK 784,800. The expatriate flat tax rate is unchanged at 27%.

Finland

Social security rates have increased slightly. The earned income tax credit has increased. Helsinki local tax and church tax are unchanged. The tax rate schedule has been adjusted, with the top marginal rate decreasing from 44.25% to 37.5%. The net effect is an increase in social security and a decrease in income tax.

Separately, the foreign expert tax regime has reduced the applicable rate from 32% to 25%. Importantly, the regime was previously restricted to non-Finnish citizens; effective 2026, Finnish citizens returning to the country may now apply for the regime, which lasts for the first 84 months.

Greece

Greece announced reductions in individual tax rates for 2026, targeted at younger taxpayers and taxpayers with children.  The 2026 tax brackets now vary by family size, with separate tax brackets that only apply to taxpayers up to and including 25 years of age; taxpayers aged 26 to 30 years; and taxpayers over 30 years of age.  For those over 30 years of age, the social security rate is unchanged at 13.37%, but the maximum annual contribution has increased to EUR 14,174. The net effect is an increase in social security for higher incomes, and a small decrease in tax that varies by family size.

Japan

Japan has enacted tax reform for 2026. One goal was to provide tax relief for lower-income individuals by increasing the minimum employment income deductions and the personal exemption allowance for lower incomes. Spouse and dependent allowances, other deductions, and tax rates are unchanged. The net effect on tax varies by income level, with a decrease in tax for lower incomes and a small increase in income tax for higher incomes.

The contributions to health insurance, long-term care insurance, and unemployment programs of social security have adjusted for rates effective April 1, 2026. This includes a new child welfare scheme for 2026. The net effect on social security varies by income level, with an increase in social security for lower incomes and a small decrease in social security for higher incomes.

Since 2013, there has been an Earthquake Reconstruction Surtax, assessed at 2.1% of the national income tax. Beginning in 2027, the surtax will be split: a 1.1% reduced surtax for Earthquake Reconstruction, and 1% for a new Defense Surtax. The total surtax remains at 2.1%. The sunset date for these surtaxes has been extended from 2037 to 2047.

Netherlands

The expatriate tax concession known as the 30% ruling has been revised again.

First, the maximum exclusion is capped. The threshold is tied to the salary level of certain government administrator employees which is indexed for inflation annually. For 2026, the salary threshold for the exclusion is EUR 262,000, or a maximum exclusion of EUR 78,600. Income that exceeds the threshold is subject to the top marginal tax rate of 49.5%.

Second, the exclusion percentage is no longer tapered over a 5-year period. The simplified concession allows a 30% exclusion (up to the cap) through 2026, and a 27% exclusion beginning from 2027. The exclusion for all qualifying expatriates is limited to a 5-year period. These new restrictions apply to new inbound assignees that started in 2024 or after. Expatriates who qualified for the concession prior to 2024 will keep the 30% exclusion for the entire 5-year period. Qualifying expatriates must meet minimum taxable salary thresholds that vary depending on age and whether they hold an advanced degree.

Third, partial nonresident status for qualifying expatriates has now been abolished. Expatriates are now considered full tax residents subject to taxation on non-Dutch investment income (Box 2 and Box 3 income).

United Kingdom

For the United Kingdom 2026/2027 tax year, the tax rates, brackets, and personal allowance are unchanged. Employee and employer contributions to National Insurance Contributions (NIC) are unchanged. Family allowances have been adjusted. The net effect for most taxpayers in no changes in tax or social security from last year.

Other U.K. changes announced include the repeal of the Non-Domicile regime (Non-Dom) that limits the remittance basis of taxation for qualifying foreign nationals. The Non-Dom regime has been replaced with a residence-based system applicable to Foreign Income and Gains (FIG), with complex transition rules. Effective April 5, 2027, the payroll reporting and PAYE withholding on benefits-in-kind will be mandatory.

United States Tax Update

At the Federal level for 2026, there have been inflation-indexing adjustments to tax brackets and the standard deduction. The tax rates are unchanged. There is an increase in the social security wage base. The One Big Beautiful Bill (OBBB) passed in July 2025 includes new provisions effective January 1, 2026:

  • The Tax Cuts and Jobs Act (TCJA) of 2017 implemented a USD 10,000 cap on the itemized deduction of state and local taxes (SALT). OBBB increased the cap to USD 40,000 for 2025, which has increased to USD 40,400 for 2026 (USD 20,200 for taxpayers filing separately). The limit is scheduled to revert to USD 10,000 in 2030. The expanded deductible SALT amount is phased-down when income exceeds USD 505,000 (USD 252,500 married filing separately).
  • Effective 2026, a phaseout of itemized deductions has been introduced. Individuals in the top 37% bracket will have their itemized deductions reduced at a rate of 2/37 for each dollar over the 37% bracket.
  • Effective 2026, individuals that do not itemize deductions will be allowed to claim a deduction for charitable contributions: up to USD 1,000 for single filers and up to USD 2,000 for joint filers.
  • Effective 2026, individuals that itemize deductions are only allowed to claim charitable contributions that exceed 0.5% of their Adjusted Gross Income.
  • For tax years 2025 to 2028, individuals will be allowed a deduction up to USD 10,000 for interest paid on an automobile loan, for a car purchased after 2024. The deduction is limited to qualifying new personal-use vehicles with final assembly in the U.S.A. The car loan interest is phased out when modified Adjusted Gross Income exceeds USD 200,000 for taxpayers filing joint, or USD 100,000 for other filing statuses. The car loan interest deduction is available through 2028 and will expire beginning 2029.
  • Trump Accounts: An Individual Retirement Account (IRA) for eligible children who have not reached age 18. Parents and relatives can make non-deductible contributions of up to USD 5,000 annually. The funds and earnings become available to the child when they turn 18 years old. Children must be U.S. citizens and have a social security number in order to qualify. The accounts functionally act as a traditional IRA, with earnings only taxable when they are withdrawn. One provision allows a tax-favored USD 1,000 ‘pilot program’ government contribution for children born between January 1, 2025 and December 31, 2028.

The net effect varies by income level, but generally there is a small reduction in tax for most taxpayers. Social security is increased at higher incomes.

Notable state tax developments

Georgia state in light blue

Georgia

Georgia has reduced the flat tax rate from 5.19% to 5.09%. The rate is scheduled to be further reduced by 0.1% each year through to 2029. Eventually, government leaders seek to eliminate individual income tax altogether.

Indiana state in light blue

Indiana

Indiana has reduced the flat income tax rate from 3% to 2.95%, and has scheduled a further reduction to 2.9% for 2027.

Kentucky state graphic

Kentucky

The flat tax rate in Kentucky has been reduced from 4% to 3.5%.

Mississippi state silhouette

Mississippi

The top rate in Mississippi has been reduced from 4.4% to 4%. Further reductions are scheduled to 3.75% in 2027, 3.5% in 2028, 3.25% to 2029, and 3% in 2030. After 2030, elimination of income tax is planned if defined revenue and growth goals are achieved.

Montana state in light blue

Montana

Montana has reduced the top rate from 5.9% to 5.65%, and has scheduled a further reduction to 5.4% in 2027.

Nebraska state graphic

Nebraska

Nebraska has reduced the top rate from 5.2% to 4.55%, and has scheduled a further reduction to 3.99% in 2027.

North Carolina state in light blue

North Carolina

North Carolina has reduced the flat rate from 4.25% to 3.99%. From 2027 to 2034, if general revenue fund targets are met, the rate will be lowered to the greater of (1) the prior year rate decreased by one-half percentage point, or (2) 2.49%.

Ohio state in light blue

Ohio

Ohio has reduced the 2026 top marginal rate from 3.125% to 2.75%. Personal exemptions are eliminated for individuals earning more than USD 500,000.

Oklahoma state in light blue

Oklahoma

Oklahoma has simplified that tax rate schedule and reduced the top rate from 4.75% to 4.5%.

Research Location Update

Q4 2025 Researched Locations and Upcoming Q1 2026 Locations

AIRINC researches more than 150 locations each quarter.

Q1 2026 Researched Locations
Q2 2026 Upcoming Locations

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