Taxes in Andorra vs. Dubai, Switzerland and Portugal: Where is it better to pay taxes in 2026?

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.