Portugal seeks to solve one of its most acute problems - a leak of brain, especially among young people. Within the framework of the new budget for 2025, the right minority government led by Luís Montenegro presented a comprehensive strategy aimed at supporting young specialists. The key element of this plan was the proposal of a progressive tax scheme, which replaces current income tax restrictions for citizens aged 18 to 35 years. Instead of a previously established fixed rate of 15%, young people will get the opportunity to completely free themselves from taxes during the first year of work, which should stimulate their career growth and retention in the country.
The proposed scheme is much more flexible and is aimed at creating an affordable and attractive economic climate for young people who want to build their career in Portugal. During the first four years of work, young specialists will be tax benefits of 75% and 50%, depending on the total earnings. This approach corresponds to the policy supported by the opposition socialists, and reflects a wide consensus about the need to stimulate the domestic labor market and increase competitiveness. It is expected that such measures will help not only stop the brain leak, but also attract foreign specialists, which, in turn, should positively affect the economic development of the country.
Economists and experts emphasize that this step is important for the stability of the Portuguese economy in the long run. A decrease in tax burden for young professionals will contribute to the creation of new jobs and the development of startups, which in turn can become a catalyst for innovative processes and increase welfare in society. Portugal takes an important step towards creating more attractive conditions for life and work for its citizens, inspiring a new generation to active participation in the economic and social development of the country.
The Portuguese government is taking significant steps to combat problems related to youth migration and high level of unemployment among young people. According to the government, the new scheme of tax benefits can help from 350,000 to 400,000 young people, providing them with financial incentives for the remaining in the country. The average annual salary in Portugal is about 20,000 euros, and income tax rates range from 13 to 48%, which makes financial initiatives especially relevant for young specialists experiencing difficulties with employment. It is expected that in 2025 this scheme will cost 645 million euros, while the lack of restrictions can serve the poor service by the economy, costing 1 billion euros.
The situation in the labor market in Portugal looks anxious: despite the decrease in total unemployment to 6.1% by mid -2024, among young people this figure is 22%, which is four times higher than the average level. Prime Minister Jenk Oz notes that the country needs to create conditions under which young people will be able to find opportunities for self-realization at home, which can prevent further leakage of personnel. He emphasizes the need for faith in the possibility of Portugal, urging the townspeople to remain and develop their country, and not go abroad in search of the best living conditions.
An important aspect of state policy is also helping young people in the acquisition of the first houses. The government plans to free them from a number of taxes and fees, which will make the purchase of housing more affordable. However, the lack of affordable housing, which aggravated as a result of recovery measures after the financial crisis of 2008, becomes the main reason for public discontent and protests. Portuguese require changes to make life and work in the country more attractive to young people, and this requirement should be heard that the country can effectively use the potential of its able -bodied youth.
Critics indicate the liberalization of the rental market, the distribution of short -term rental objects, the issuance of “gold visas”, which provide housing permits in exchange for the purchase of real estate in the amount of 500,000 euros or more, the implementation of taxes “not the usual residency scheme” for foreigners and create a Digital visa NOMAD, in order to allow well -worked foreigners to work remotely and pay the tax rate by only 20%
At the end of September 2023, in Lisbon and other cities of Portugal, thousands of people took to the streets with protests against the growth of rent and housing prices. This mass rally has become a reflection of the growing discontent of citizens who cannot afford worthy housing in the context of constantly increasing expenses. In response to these problems, the government of the country announced the intention to allocate 2 billion euros to solve the housing crisis and plans to build about 33,000 new houses by 2030. However, questions remain about the real viability and effectiveness of these initiatives, especially given the complex political situation in the country.
At the end of September 2023, in Lisbon and other cities of Portugal, thousands of people took to the streets with protests against the growth of rent and housing prices. This mass rally has become a reflection of the growing discontent of citizens who cannot afford worthy housing in the context of constantly increasing expenses. In response to these problems, the government of the country announced the intention to allocate 2 billion euros to solve the housing crisis and plans to build about 33,000 new houses by 2030. However, questions remain about the real viability and effectiveness of these initiatives, especially given the complex political situation in the country.
The situation in Portugal is also complicated by instability in neighboring Montenegro, where the new government, which came to power in April, is faced with difficulties in passing the budget through parliament. If Montenegro cannot approve its budget by the end of November, this can lead to the third elections in Portugal in recent years, which will add additional political uncertainty.
The right-centric democratic union, which received 80 seats in the elections in March, has no majority in the 230-seat legislative assembly, which makes the political situation even more intense.
Before his took office, the new leader of Montenegro emphasized the importance of confidence in voters and the collective responsibility of all political players, including the opposition. His statements indicate the need to cooperate various parties to solve urgent problems, such as housing crisis and economic instability. Obviously, to achieve progress, not only financial support of the government is required, but also political stability, which is still in question.
