Portuguese Government to Slash Taxes for Young People in Effort to Reduce Emigration
The Portuguese government has announced plans to reduce income taxes for individuals aged 35 and under, aiming to deter young people from leaving the country and attract foreigners to settle in Portugal. Under the proposed budget, those earning up to €28,000 would pay zero tax in their first year, with a gradual increase over a decade. This initiative is a collaboration between the ruling Democratic Alliance-led government and the Socialist Party, intended to address the issue of high emigration rates among Portuguese youth.
The cost of living in Portugal has driven many young people to seek opportunities abroad, with approximately 30% of Portuguese aged 15 to 39 currently living outside the country. While some applaud the government’s efforts to retain young talent, others criticize the plan as insufficient, insisting that policies addressing housing affordability and low wages are more urgent. The success of this budget proposal hinges on the support of opposition parties, with a parliamentary vote scheduled for October 31st. The outcome could determine the future of the Montenegro government, which has faced uncertainty since coming into power earlier this year.
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