Portugal’s Government Proposes 100 Percent Tax Cuts for Under-35s in Bid to Reduce Emigration

About 850,000 people ages 15 to 39 have already left the country because of low wages and poor working conditions.
Portugal’s Government Proposes 100 Percent Tax Cuts for Under-35s in Bid to Reduce Emigration
Portugal's national flag in Lisbon, Portugal, on June 27, 2012. Patricia de Melo Moreira/AFP/GettyImages
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Portugal’s center-right minority government is taking steps to address the exit of youth from the country by proposing a 100 percent tax break for many people ages 35 and younger, in a measure aimed at discouraging emigration.

Under the initiative, introduced on Oct. 10 as part of the government’s first budget bill, individuals younger than age 35 earning as much as 28,000 euros (about $30,500) per year will receive a 100 percent tax exemption in their first year of work. This exemption will gradually decrease to 25 percent between the eighth and 10th years. The plan is expected to affect more than 300,000 people.

Owen Evans
Owen Evans
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Owen Evans is a UK-based journalist covering a wide range of national stories, with a particular interest in civil liberties and free speech.