The tax exemptions granted to foreign citizens who come to live, invest or work in Portugal have made many people choose the country to live in. The other side of the coin is the flight of residents, particularly young people, who pack their bags for other destinations in search of better living and working conditions and/or salaries. A scenario that seems to have gained momentum with the increasing tendency for Portugal to be one of the places of choice for local nomads.
According to Bloomberg, which is based on data compiled by the Lisbon Emigration Observatory, Portugal has the eighth highest emigration rate as a proportion of the population in the world, with around 25% of its population living abroad.
Rui Pena Pires, the organisation's president, estimates that a person with qualifications is two or three times more likely to leave Portugal than someone without any skills, with the majority of qualified workers going to the UK, Ireland, Belgium and other northern European countries.
The high tax burden on employees and employers is another problem that persists in Portugal, which has a progressive tax regime of between 14.5% and 48%, recalls the agency, pointing out that average salaries are among the lowest in Western Europe.
At the same time, there are tax incentives for digital nomads, and Lisbon is considered by many to be the capital of Europe in this sector. Internally, however, large national companies find it difficult to recruit and retain young talent.
The figures also show that the number of Non-Habitual Residents (NHR) also soared in 2022, with the government deciding to end the regime from 2024, a measure that is included in the proposed State Budget for 2024 (OE2024). But they also show, as you can see in the image, that more Portuguese are emigrating, at least compared to previous years.
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As Digital Nomads Flock to Lisbon, Portugal's Youth Are Leaving in Droves
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