The UK government’s recent budget announcement introduced a High Value Council Tax Surcharge on properties worth over £2 million, effective from April 2025. This move reflects a broader pattern across developed economies as governments seek new revenue streams following years of inflation and increased borrowing, writes Expat Tax Thailand.
Several major economies are now facing similar fiscal pressures, with many signalling or debating tax increases that could emerge during 2026. Carl Turner, Founder of Expat Tax Thailand, a tax advisory service for expatriates in Thailand, explains which countries are most likely to raise taxes in the coming year and what these changes mean for international residents.
“We’re seeing governments worldwide grappling with budget deficits while trying to fund public services and manage debt,” says Turner. “The question isn’t whether taxes will rise, but where and by how much. For expatriates, understanding these trends is important for planning relocations and managing their global tax positions.”
Below, Turner identifies the countries facing the greatest pressure to increase taxation and explains the emerging trend of targeting ultra-high-net-worth individuals.
Countries facing the highest pressure to raise taxes
Several developed nations are dealing with significant budget shortfalls that make tax increases likely in 2026. Economic pressures and political realities point to five countries where taxpayers should brace for changes. Turner lists them:
UK
The UK has already signalled its direction with the High Value Council Tax Surcharge on properties exceeding £2 million. With ongoing debates about funding the NHS and managing national debt, further tax adjustments are probable.
“The UK government is under immense pressure to balance its books while maintaining public services,” Turner explains. “Property and wealth-adjacent taxes are politically easier to implement than broad income tax rises, so we may see more measures targeting high-value assets.”
Italy
Italy’s government announced its 2026 budget in October 2025, targeting a deficit of 2.8% of GDP. While the country is actually implementing tax cuts for middle earners rather than increases, it has increased sector-specific taxes on banks and financial institutions through a two percentage point increase in IRAP rates for three years.
“Italy is walking a tightrope,” says Turner. “The government is cutting taxes for voters while quietly increasing levies on the financial sector to meet EU deficit requirements. It’s a politically calculated approach.”
Japan
Japan enacted major tax reforms in March 2025, introducing a 4% special defence surtax on corporate income tax for fiscal years starting from 1 April 2026. The country is also implementing global minimum tax rules and has increased tobacco taxation in stages beginning April 2026.
Turner notes that Japan’s public debt remains the highest among developed nations relative to its economy. “Japan can no longer avoid the fiscal mathematics. The defence surtax alone will push the effective corporate tax rate from 34.59% to 35.43%. Combined with an ageing population and mounting social security costs, further revenue measures are being actively discussed,” he says.
France
France debated a new ultra-rich wealth tax during 2026 budget talks in late 2025, though lawmakers rejected the most aggressive versions. However, the government backed an alternative approach focused on taxing assets held via holding companies.
“Even though France’s National Assembly rejected the most extreme proposals, the debate isn’t over,” Turner observes. “The government is finding other ways to target high-net-worth individuals through corporate structures. This shows that wealth taxation remains firmly on the political agenda.”
Canada
Canada’s federal budget, delivered in November 2025, projects a deficit of $78.3 billion for 2025-26. While the government introduced a middle-class tax cut (reducing the lowest bracket from 15% to 14%), it offset this through expenditure reviews and increased taxation on higher earners through measures like the capital gains inclusion rate changes.
“Canada is caught between maintaining its social programmes and managing fiscal sustainability,” Turner says. “The middle-class tax cut is good politics, but the government is finding other revenue sources. We’re likely to see continued targeted measures rather than sweeping increases.”
Countries looking to target the super-rich
Beyond general tax pressures, several jurisdictions are specifically pursuing ultra-high-net-worth individuals through wealth taxes, capital gains reforms, and exit taxation:
- USA: Wealth tax discussions continue, though implementation remains politically contentious at the federal level
- Spain: The Solidarity Tax on Large Fortunes remains in place, representing one of Europe’s clearest examples of targeting the very wealthy
- Norway: Wealth tax debates have sparked a “millionaire exodus,” prompting the country to amend exit tax rules in the 2025 national budget to close emigration loopholes
- Belgium: New capital gains tax on financial assets took effect 1 January 2026, with 2025 valuation mechanics to establish baseline values
- Brazil: Reforms enacted in November 2025 reintroduce dividend taxation and establish minimum taxes for higher incomes, effective 1 January 2026
“We’re seeing a coordinated shift across multiple jurisdictions,” Turner explains. “Governments are increasingly sharing strategies and closing gaps that previously allowed high-net-worth individuals to avoid taxation through relocation or asset restructuring. When Belgium and Brazil both implement similar measures within months of each other, it signals a genuine international movement toward redistributing tax burdens upward.”
What this means for expats and how Thailand compares
For expatriates, these global tax changes create both challenges and opportunities depending on their country of residence and citizenship obligations.
Thailand currently maintains a territorial tax system, though recent discussions have explored potential changes to foreign income rules. The country’s personal income tax rates remain relatively moderate compared to many Western nations, with the top rate at 35% for income above 5 million baht (approx. $160,000).
“Thailand’s remittance-based tax environment remains comparatively favourable for expatriates, particularly those with foreign-sourced income,” Turner explains. “However, expats need to stay informed about potential changes and understand how their home country’s tax obligations intersect with Thai residency.”
The key consideration for expatriates is understanding their complete tax picture across all relevant jurisdictions. Many countries, including the USA, tax citizens on worldwide income regardless of residence, while others may impose exit taxes on those who relocate.
“The biggest mistake expats make is assuming they can simply move and avoid taxation,” says Turner. “Modern tax treaties and information-sharing agreements mean governments can track international assets and income far more effectively than even five years ago. Proper planning requires understanding the rules in both your home country and your country of residence.”
Turner recommends that expatriates review their tax positions in early 2026, particularly if they hold significant assets or are considering relocation. “2026 will bring changes across multiple jurisdictions. Getting ahead of these shifts now can save considerable money and stress later.”
Carl Turner, founder of Expat Tax Thailand, commented: “Expatriates should act now rather than wait for 2026 changes to take effect. Review your tax residency status in all relevant countries and ensure you understand where you’re legally resident for tax purposes, as physical presence alone doesn’t determine this. Check whether your home country has updated its exit tax provisions or wealth reporting requirements, as many jurisdictions have strengthened these over the past few years.
“If you hold significant assets, consider getting a professional tax assessment early in the year to identify potential exposure across multiple jurisdictions. Pay particular attention to any trusts, holding companies, or overseas property, as these structures are increasingly under scrutiny. Finally, ensure you’re compliant with Common Reporting Standard and other cross-border reporting obligations. Tax authorities now routinely share financial information across borders, and non-compliance can trigger audits in multiple countries simultaneously.”
About Expat Tax Thailand
Expat Tax Thailand is a tax advisory and filing service tailored specifically for expatriates living in Thailand, offering clear guidance on Thai tax obligations and succession planning. They help clients understand, comply with, and optimise their tax positions, from simple to complex cases, via a secure online platform. Their services include essential, assisted, and expert tax filings, along with strategic tax planning, estate planning, and cryptocurrency compliance. They ensure personalised, English-speaking, responsive support with certified Thai accountants who specialise in expat tax.
Sources
France’s National Assembly rejected proposals for an ultra-rich wealth tax Reuters
UK 2026 budget GOV.UK
Norway’s exit tax rules amended in 2025 national budget BDO Global
Italy 2026 budget measures: ey.com
Japan tax reforms: ey.com
Canada federal budget: CBC
