Expat Briefing: Shifts in Spain, Italy, Australia, Canada & Cyprus
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This week we cover a significant salary hike for Spain's digital nomads, Italy’s steeper "price of admission" for high-net-worth residents, Australia’s massive work visa overhaul, Canada’s pivot toward "In-Canada" talent & Cyprus’ major tax break.
🇪🇸 Spain: Minimum Wage Hike Hits Digital Nomad Wallets
Spain’s recent 3.1% increase in the national minimum wage (SMI) has triggered an immediate knock-on effect for the Digital Nomad Visa (DNV). Because the visa requires applicants to earn at least 200% of the SMI, the new monthly income floor has jumped to €2,852 (up from €2,763 in 2025).
For families, the bar is even higher: bringing a spouse now requires an additional €1,068 per month, and each child adds €356. If you are currently preparing an application, note that consulates will generally accept 2025 income proofs only until February 28th—after that, the higher 2026 thresholds become mandatory.
🇮🇹 Italy: The "Flat Tax" Just Got 50% More Expensive
High-net-worth individuals eyeing Italy’s famous "lump-sum" tax regime face a much steeper bill this year. The 2026 Budget Law has officially increased the annual flat tax for new residents from €200,000 to €300,000.
The cost for family members opting into the regime has also doubled, rising from €25,000 to €50,000 per dependent. Crucially, if you are already enrolled in the system, you are "grandfathered" in at your original rate. This hike is seen as a strategic move to align Italy with other premium jurisdictions like Switzerland, following the UK's abolition of non-dom status.
🇦🇺 Australia: Out with the 482, In with "Skills in Demand"
Australia has officially begun its transition to the new "Skills in Demand" (SID) visa, replacing the long-standing Temporary Skill Shortage (Subclass 482). The 2026 framework is strictly job-driven: you can no longer apply without a confirmed job offer from a sponsor.
The new system offers more breathing room for workers; if you lose your job, you now have 180 days (instead of 60) to find a new sponsor. Additionally, the government has lowered the work experience requirement to just one year for certain streams, making it significantly easier for early-career professionals to make the move.
🇨🇦 Canada: The "In-Canada Transition" Era
Canada is fundamentally shifting its 2026–2028 Immigration Levels Plan, stabilizing permanent resident targets at 380,000 while prioritising those already on the ground. A new "In-Canada Transition" initiative aims to convert 33,000 temporary workers into permanent residents this year.
For those applying from abroad, the Express Entry system is becoming more "segmented." A dedicated category for Physicians has just launched, and new priority draws are expected for researchers and specialists in National Security. If you aren't in a "priority" category, the message from Ottawa is clear: look toward Provincial Nominee Programs (PNP), which are seeing a 66% boost in their admission quotas for 2026.
🇨🇾 Cyprus: A Major Tax Break and "Universal" Filing
Cyprus has launched its most significant tax reform in decades for 2026, and the news is overwhelmingly positive for earners. The tax-free threshold has been raised to €22,000 (up from €19,500), meaning the first €22,000 of your income is now completely exempt from personal income tax.
However, this relief comes with stricter compliance. From this year, mandatory tax filing now applies to almost all residents aged 25 to 70, regardless of whether they meet the tax-free threshold or not. With the authorities digitising the system and removing the "grey areas" of the past, staying on top of your reporting is no longer optional.
Need help navigating the new Cyprus rules?
Our team is currently taking bookings for 2026 Cyprus Tax Return services. Whether you are a "Non-Dom" expat or a local business owner, we can ensure you take full advantage of the new thresholds while staying fully compliant.
Checkout our Cyprus Tax Return Service to get started or contact us for a free review or more information.
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Contact us or book a free review with one of our expat experts today.
