Portugal Proposes Tax Breaks for Under-35s to Curb Youth Emigration

The government aims to retain young talent with a decade-long progressive tax relief plan amid economic challenges.

Portugal's center-right government, led by Prime Minister Luís Montenegro, has proposed a plan to exempt workers under 35 from income tax for their first year of employment.
The tax relief plan includes a progressive reduction in tax rates over ten years, with a 75% tax break for the next two years and gradually decreasing exemptions thereafter.
The initiative seeks to address the significant emigration of young Portuguese, with 30% of the 15-39 age group currently living abroad due to low wages and high living costs.
The budget proposal, which includes this tax plan, faces uncertain approval in parliament, where the ruling coalition lacks a majority.
Critics argue the plan may not sufficiently address underlying issues like high housing costs, which have been exacerbated by foreign investment and tourism-driven policies.