Q.3 2025

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

Abu Dhabi, U.A.E.

Austin, TX, United States

Cape Town, South Africa

Curitiba, Brazil

Lagos, Nigeria

Luanda, Angola

Muscat, Oman

UAE Map

Abu Dhabi, U.A.E.

Rents in Abu Dhabi have been rising, driven mainly by strong demand and limited near-term supply. Apartments saw the sharpest increases on Al Reem, Al Raha, and Saadiyat Islands, while large luxury villas corrected and smaller ones edged up. Vacancy remains moderate, with new projects like Yas Island developments and Saadiyat’s new American school boosting demand. Further growth is expected, though trends will vary by area.

United States country in blue

Austin, TX, United States

Austin’s rental market is seeing falling rents due to a major oversupply of new apartments, driven by the construction boom that began during peak pandemic demand. As projects launched in high-demand years continue to deliver units, the market has become overbuilt. With demand now easing, the surplus of available rentals is putting downward pressure on prices.

South Africa Map

Cape Town, South Africa

Cape Town’s expatriate rental market has seen prices rise significantly. This surge is driven by high demand, fueled by local relocations from Johannesburg, alongside expatriate interest, particularly in family-friendly areas like Western Table Bay near Blouberg International School. Low vacancy rates and limited new construction, constrained by the city’s geography, have tightened supply.

Brazil country in blue

Curitiba, Brazil

Rental prices have risen as demand has increased. A growing influx of domestic migrants has fueled this demand, while the availability of good-quality properties remains limited.

Nigeria country in blue

Lagos, Nigeria

Lagos’s expatriate rental market has experienced sharp inflation in the last 6 to 12 months, with rents nearly doubling in some places. Rents have surged due to rising demand from expatriates and returning professionals, while the availability of prime units is limited. Elevated construction costs and limited land options constrain new construction.

Angola country in blue

Luanda, Angola

Luanda’s expatriate rental market has seen significant price increases due to limited housing supply, stalled high-quality construction, and growing demand from expatriates, particularly those in the oil sector from the Middle East, Europe, and Asia. Low vacancy rates in prime areas like Cidade Central and Talatona, combined with high construction costs and a sustained high interest rate, have constrained new developments.

Muscat, Oman

Muscat’s expatriate rental market has seen steady upward pressure on rents. This trend is supported by continued inflows of foreign professionals, particularly from Europe. In high-demand districts, limited inventory has led to quick turnovers, with desirable properties often securing tenants within days. Competition for housing has also grown in southern districts, where Omani nationals are increasingly active in the rental market, further tightening supply.

Goods and Services Update

Highlights from AIRINC’s in-depth research
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Goods and Services Inflation

Selected locations with inflation higher than 5% for 6 months
Angola
Argentina
Bolivia
Bonaire, Sint Eustatius and Saba
Burundi flag
Burundi
Egypt
Ethiopia Flag
Ethiopia
Gaza and Palestine flag
Gaza
Haiti
Iran flag
Iran
Madagascar
Malawi
Nigeria
Gaza and Palestine flag
Palestine
South Sudan flag
South Sudan
Sudan
Suriname flag
Suriname
U.S. Virgin Islands flag
U.S. Virgin Islands
Venezuela flag
Venezuela

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

Argentina

Currency: ARS

Change vs EUR: -21.2%

Change vs USD: -19.1%

Colombia

Currency: COP

Change vs EUR: 2.4%

Change vs USD: 5.1%

Dominican Republic

Currency: DOP

Change vs EUR: -7.9%

Change vs USD: -5.5%

Ethiopia

Currency: ETB

Change vs EUR: -8.6%

Change vs USD: -6.2%

Ghana

Currency: GHS

Change vs EUR: -17.4%

Change vs USD: -15.3%

Hungary

Currency: HUF

Change vs EUR: 3.1%

Change vs USD: 5.7%

Israel

Currency: ILS

Change vs EUR: 2.8%

Change vs USD: 5.4%

Palestine

Currency: ILS

Change vs EUR: 2.8%

Change vs USD: 5.4%

Paraguay

Currency: PYG

Change vs EUR: 9.7%

Change vs USD: 12.6%

Russia

Currency: RUB

Change vs EUR: -7.6%

Change vs USD: -5.2%

Tajikistan

Currency: TJS

Change vs EUR: 2.9%

Change vs USD: 5.6%

Tanzania

Currency: TZS

Change vs EUR: 3.5%

Change vs USD: 6.1%

Venezuela

Currency: VES

Change vs EUR: -40.3%

Change vs USD: -38.8%

Belarus

Currency: BYN

Change vs EUR: -5.8%

Change vs USD: -3.3%

Botswana

Currency: BWP

Change vs EUR: -6.6%

Change vs USD: -4.2%

Kazakhstan

Currency: KZT

Change vs EUR: -6.9%

Change vs USD: -4.5%

Northern Cyprus

Currency: TRY

Change vs EUR: -6.8%

Change vs USD: -4.4%

Sierra Leone

Currency: SLE

Change vs EUR: -5.6%

Change vs USD: -3.1%

Turkey

Currency: TRY

Change vs EUR: -6.8%

Change vs USD: -4.4%

Country
Tax Update

Changes in expatriate tax

Bahrain

Canada

Guyana

Mauritius

Pakistan

United States

Bahrain

There are no changes to individual taxation for 2025; there is no income tax in Bahrain.

The Economic and Financial Affairs Committee is considering a 2% tax on expatriate remittances. The proposal was initially passed by Parliament in 2024 but rejected but the Shura Council. In 2025, the Ministers of Parliament once again voted unanimously to approve the 2% levy. The Shura Council is once again expected to reject the proposal, citing concerns that the tax may deter foreign investment and skilled workers in competition with other Gulf Cooperation Council countries. The Shura Council also stated, “adopting the legislation would mean breaching the Unified Arab Investment Agreement which disallows imposing any restrictions – whether administrative, legal or financial – on Arab capital and investments”. If the Shura Council rejects the proposal again, as expected, a joint session of the National Assembly will conduct a vote.

Canada

Effective July 1, 2025:  The federal government has implemented a small tax cut, reducing the lowest tax rate from 15% to 14%.  This also changes certain federal allowances and credits that are tied to the lowest tax rate.  The net effect is a small reduction in tax for most taxpayers.  Social security is unchanged.  Family allowance amounts (Canada Child Benefit) have been adjusted for inflation, resulting in a small increase.

Guyana

The minimum nontaxable allowance has increased from GYD 1,200,000 to GYD 1,560,000. The tax rate schedule has been adjusted, with the two rates being reduced from 28% and 40%, to 25% and 35%, respectively. In addition, a new deduction of GYD 120,000 per child has been introduced. The net effect is a decrease in income tax for all taxpayers.

Mauritius

(Tax year begins July 1) – The tax rate schedule has been simplified, with the eleven-rate schedule replaced with three rates: 0%, 10%, and 20%. In addition, a new Fair Share Contribution for high-income earners has been introduced for a three-year period, assessed at 15% of income for individuals earning more than MUR 12,000,000. The maximum social security has slightly increased. The net effect varies by income.

Separately, for tax year 2025/2026, individuals aged 18-28 earning less than MUR 1,000,000 will be exempt from tax.

Pakistan

(Tax year begins July 1) – The tax rate schedule has been adjusted, and the surcharge rate for individuals earning more than PKR 10,000,000 has been reduced from 10% to 9%. The maximum annual social security contributions are unchanged. The net effect is a decrease in tax for all individuals.

United States

Following much debate and many voting sessions amongst Congress, on July 4th, President Trump signed the One Big Beautiful Bill Act (OBBBA) into law. OBBBA includes a wide range of tax changes that impact individuals and global mobility:

  • Extended/modified individual provisions:
    • The Tax Cuts and Jobs Act (TCJA) of 2017 was set to expire as of December 31, 2025. OBBBA has extended (and modified) many of the individual TCJA provisions, including:
      • The 10%, 12%, 22%, 24%, 32%, 35%, and 37% individual tax brackets are extended.
      • The elimination of personal exemptions is extended.
      • Higher standard deductions amounts: the 2025 standard deduction amounts are $31,500 for joint filers, $23,625 for heads of households, and $15,750 for single and married taxpayers filing separately.
      • TCJA implemented a $10,000 cap on the itemized deduction of state and local taxes (SALT). OBBBA increases the cap to $40,000 for 2025, with a 1% increase each year through 2029, before reverting to $10,000 in 2030. The deductible amount is phased down when income exceeds $500,000 ($250,000 married filing separately).
      • TCJA increased the child tax credit from $1,000 to $2,000. OBBBA increases the 2025 amount to $2,200, with annual inflation increases scheduled.
  • New individual provisions:
    • ‘No tax on tips’: OBBBA does not exclude tip income but provides a deduction up to $25,000. The deduction is phased out when adjusted gross income exceeds $150,000 for single filers and $300,000 for joint filers. Tips will still be subject to social security withholdings, without a deduction. The deduction is set to expire after 2028.
    • ‘No tax on overtime’: OBBBA does not exclude overtime income but provides a deduction up to $25,000 for joint filers, $12,500 for single filers. The deduction is phased out when adjusted gross income exceeds $150,000 for single filers and $300,000 for joint filers. Overtime will still be subject to social security withholdings, without a deduction. The deduction is set to expire after 2028.
    • Prior to TCJA, itemized deductions were subject to a phaseout at higher incomes (the ‘Pease’ limitation). Effective 2026, the ‘Pease’ itemized deduction limitation will return.
    • For tax years 2025 to 2028, individuals will be allowed a deduction up to $10,000 for interest paid on an automobile loan, for a car purchased after 2024.
    • ‘Trump Accounts’: Children born between January 1, 2025, to December 31, 2028, will be provided a tax-favored $1,000 ‘Trump Account’ that will be invested in low-cost stock funds that track market indices. Parents and relatives can contribute up to $5,000 annually. The funds and earnings become available to children when they turn 18 years old. Children must be US citizens and have a social security number to qualify. The accounts functionally act as a traditional Individual Retirement Account (IRA), with earnings only taxable when they are withdrawn.
    • Effective 2026, individuals that do not itemize deductions will be allowed to claim a deduction for charitable contributions, up to $1,000 for single filers, and $2,000 for joint filers.

Research Location Update

Q3 2025 Researched Locations and Upcoming Q4 2025 Locations

AIRINC researches more than one hundred fifty locations each quarter.

Q.3 2025 Researched Locations
Q.4 2025 Upcoming Locations

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