Portugal's Bid to Retain Young Talent: Tax Breaks and Housing Aid

Portugal introduces tax breaks and housing incentives to prevent young talent from leaving for better opportunities abroad. The government's measures target a brain drain that has weakened the country's economy, though skepticism remains about their effectiveness.

Portugal is rolling out tax breaks and housing support to encourage young professionals to remain in the country and curb a growing brain drain. These incentives, which could impact up to 400,000 young people, are part of efforts to boost the nation's economy hindered by talent loss.

This initiative offers under-35s earning up to 28,000 euros annually a full tax exemption in their first working year, tapering to a 25% reduction by the eighth year. Despite these measures, doubts persist regarding their potential to reverse the trend of young Portuguese seeking better opportunities abroad.

The emigration crisis is exacerbated by higher wages and career prospects elsewhere, with 40% of university graduates emigrating annually. Portugal hopes these economic reforms will prevent further demographic decline and financial strain on its already burdened economy.

(With inputs from agencies.)