Portugal proposes decade of tax breaks for young people to stem brain drain

In April, Portugal swore in a new center-right government. It inherited a huge problem, namely: how do you stop a brain drain that’s seen thousands of young people leave your country, at a time when your population is naturally aging and birth rates are hitting record lows?

The new prime minister, Luís Montenegro, has a radical proposal — a decade of super low taxes for people under 35.

Under the proposed scheme, young workers who earn less than €28,000 ($30,650) would enjoy a completely tax-free first year. They would then be exempted from 75% of tax until the fourth year, enjoy a 50% exemption in years five to seven, and a final 25% in years eight to ten.

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