Choosing the right country to optimise your tax situation can have a major impact on your finances. In this article, we compare taxes in Andorra, Dubai, Switzerland and Portugal—four popular low-tax destinations for expats.
We’ll explain how each country’s tax system works in 2026 and highlight the main expat tax advantages. With this guide, you’ll be able to make an informed decision.
Why compare tax systems in 2026?
Global transparency standards are changing how countries attract foreign capital. Low-tax destinations must now combine tax efficiency with legal security and economic stability.
Choosing the right country can help protect your wealth, support your business growth and ensure long-term financial peace of mind.
Taxes in Andorra in 2026
Tax system
The taxes in Andorra are among the most competitive in Europe. The system is simple, with low and progressive rates.
Main rates:
- Corporate tax: 2% – 10%
- Personal income tax: 0% up to €24,000, 5% up to €40,000, 10% above that
- Wealth tax: none
- VAT (IGI): 4.5%
Other benefits
- No tax on foreign dividends
- No inheritance or gift taxes
- Residency available with low tax burden
Ideal profile
Digital entrepreneurs, freelancers and investors seeking a secure, efficient and high-quality living environment.
Taxation in Dubai (UAE)
Tax system
Dubai has long been known for its expat tax advantages. Until recently, it had no corporate tax at all.
Key changes since 2023:
- Corporate tax: 9% for profits over AED 375,000 (approx. €95,000)
- Personal income tax: 0%
- VAT: 5%
- No wealth, inheritance or dividend tax
Important notes
- Residency requires real physical presence and economic substance
- Business-friendly but subject to regulatory changes
Ideal profile
High-income entrepreneurs and expats looking for zero personal income tax and international business freedom.
Taxes in Switzerland
Tax system
Switzerland offers a mix of high living standards and a complex federal tax structure. The tax comparison depends heavily on the canton.
Approximate averages:
- Corporate tax: 12% – 18%
- Personal income tax: 10% – 40% (cantonal variation)
- Wealth tax: up to 1%
- VAT: 7.7%
Advantages
- Strong international tax treaties
- Lump-sum taxation available for HNWIs
- Political and financial stability
Disadvantages
- High cost of living
- Tax complexity and variation by region
Ideal profile
Wealthy investors and international business owners seeking reputation, banking stability and flexible agreements.
Taxation in Portugal (NHR regime)
Tax system
Portugal attracted thousands of expats with its NHR (Non-Habitual Resident) regime. However, the programme has changed.
NHR until 2023 (now eliminated):
- 10-year exemption on foreign income
- 20% flat rate on selected professions
In 2026:
- NHR replaced by a less favourable regime
- Personal income tax: up to 48%
- VAT: 23%
- Inheritance taxes apply in some cases
Considerations
- Still suitable for retirees or moderate-income expats
- Less competitive for high earners
Ideal profile
EU nationals with average income levels looking for lifestyle benefits rather than maximum tax optimisation.
Final comparison: where is it best to pay taxes?
Here’s a quick tax comparison summary between the four countries:
| Country | Personal Income Tax | Corporate Tax | VAT | Wealth / Inheritance Tax | Cost of Living |
| Andorra | 0% – 10% | 2% – 10% | 4.5% | None | High |
| Dubai | 0% | 9% | 5% | None | Medium–High |
| Switzerland | 10% – 40% (cantonal) | 12% – 18% | 7.7% | Yes (varies by canton) | Very High |
| Portugal | Up to 48% | Up to 31.5% | 23% | Yes | Medium |
If you want to optimise your taxes in 2026, it’s essential to evaluate each country strategically. The taxes in Andorra offer a unique combination of low tax burden, legal certainty and excellent living standards.
Dubai remains appealing for zero personal income tax. Switzerland is ideal for prestige and financial security but comes with higher taxation. Portugal, though attractive for lifestyle, no longer stands out in tax efficiency.
At MCA Assessors, we help you analyse which destination fits your profile best. If you’re considering taxes in Andorra, our team will guide you through every step of the relocation process.
Contact us today and receive personalised advice on how to optimise your tax status in 2026.
