‍1.Portugal announcestax cuts

In November 2025,the President of Portugal signeda law gradually reducing the corporate tax (IRC) from 20% to 17% by 2028.

In 2026, the ratewill be 19%, with a 15% rate applied to the first €50,000 of profit for SMEs(small and medium-sized enterprises).

Previously, thestandard rate was 21%, and it was reduced to 20% in 2025.

Other announcedchanges include:

-The minimum wage will increase from €870 to €1,100;

-Pensions and benefits for the elderly will rise.

According togovernment forecasts, the economy is expected to grow by over 2%, and for thefirst time in 16 years, the public debt will fall below 90% of GDP (GrossDomestic Product).

2. UAE strengthens Anti-Money Laundering measures

The UAE officially updated its framework to combat money launderingand terrorist financing: the new AML Law No. 10/2025 significantly raisesstandards:

-Broader coverage: financing theproliferation of weapons and tax evasion are now predicate offenses.Obligations also extend to DNFBPs (lawyers, real estate, corporate services)and VASPs (crypto businesses).

-Lower evidentiary threshold: liability canarise even from indirect evidence.

-Expanded powers for the FIU (FinancialIntelligence Unit): the ability to freeze suspicious assets for longer periods.

-Higher fines: up to AED 100 million (€23.5million) and personal liability for management.

-UBO data update and retention: increasedtransparency, with a minimum data retention of 5 years.

3. UK plans 20% Exit Tax: moving business will come at a cost

The UK plans to introduce a 20% exit tax for thoserelocating business assets abroad:

-When moving out of the UK, assetowners - includingshares, corporate stakes, and other capital instruments - may face a 20% “exit” tax on assetvalue gains.

-The expected impact on the budget isup to £2 billion in additional revenue.

-Currently, expats pay 20% tax onlyon capital gains from UK real estate, while other assets fall outside thisregime. The government intends to close this “loophole.”

The UK remains one of the few majoreconomies without such a mechanism. However, if the tax is announced too early,there is a risk of mass asset outflow before implementation.

4. Montenegro checks inactive foreigncompanies

Montenegro’s Tax Administration has submitted the first list of 2,000+ inactive companiesfounded by foreigners to the police. The aim is to determine whether ownerscomply with legal requirements and whether there are grounds to revoketemporary residence permits if violations are found.

From May to August, inspectors conducted3,123 checks, identifying violations in 567 companies:

-Fines imposed: €2.3 million,

-Nearly half already collected,

-26 companies received temporary banson operations,

-Several cases referred to theprosecutor’s office as potential criminal offenses.

Montenegro is preparing for fulldigitalization of its tax system - in partnership with the World Bank, a new integrated revenue managementsystem is being developed, expected to launch in 2026, with regular inspectionsof high-risk companies.

5. Bulgaria increases taxes and saysgoodbye to the lev

The Bulgarian Ministry of Finance published the draft 2026 budget and an updatedmedium-term forecast for 2026–2028:

-From 2026, the dividend tax ratewill rise from 5% to 10%, meaning investors and company owners will pay more.

-The minimum wage will increase to€620.

-Parental benefits and childallowances will rise to €460.

-Pensions and vacation compensationswill increase.

-Pension contributions will increaseby 2% in 2026 and by another 1% in 2028.

Additionally, Bulgaria will officially adoptthe euro from January 1, 2026!