Portugal's New Tax Breaks: Halting Youth Exodus?

Portugal is implementing tax breaks and housing incentives to retain young talent and combat the brain drain to wealthier European countries. Despite the measures, young professionals like Pedro Monteiro remain skeptical about the opportunities in Portugal due to high living costs and better prospects abroad.

Amid rising concerns of a brain drain, Portugal is introducing tax breaks to entice young professionals to stay and work in the country. With high living costs and better-paying jobs abroad, the plans face skepticism from youth, including aerospace engineer Pedro Monteiro.

The Portuguese government's initiatives, offering up to a 100% income tax exemption and housing assistance, aim to curb the exodus of graduates seeking better opportunities. However, the effectiveness of such measures remains uncertain as many still head to wealthier countries.

The policy shift comes as Portugal combats a demographic challenge and efforts to boost local innovation and tackle high tax burdens, which continue to drive young talent abroad.

(With inputs from agencies.)