Until recently aerospace engineer Pedro Monteiro figured he’d join many of his peers moving from Portugal to its richer European neighbours in the quest for a better-paid job once he completes his master’s degree in Lisbon.
But tax breaks proposed by Portugal’s government for young workers – up to a temporary 100% income tax exemption in some cases – plus help with housing are making him think twice.
“Previous governments left young people behind,” said Monteiro, 23, who is studying engineering and industrial management at the Higher Technical Institute in the Portuguese capital. “The country needs us and we want to stay but we need to see signs from the government that they are implementing policies that will help.”
Monteiro cites in particular the cost of buying or renting a home amid a housing crisis aggravated by the arrival of wealthy foreigners lured by easy residency rights and tax breaks.
He is doubtful the government’s new measures will be enough.
“Some of my friends are now working abroad and earn substantially more money… and have better career development opportunities,” he said. “I’m a little bit sceptical concerning my job opportunities here in Portugal.”
Portugal is the latest country in Europe to seek to tackle a brain drain holding back its economy. Tax breaks for young workers in the budget currently going through parliament will take effect next year and could benefit as many as 400,000 young people at an annual cost of 525 million euros.
