Nearly 30% of Portugal’s working population aged 15 to 39 works in foreign nations. Prior to Brexit, the majority of them were relocating to Britain. They are now moving to the Netherlands to earn higher earnings.
The pattern is the same in other countries. People are relocating from Hungary to Austria, and from Italy to London. Everywhere, the tale is the same. Migrants seek higher income and better living conditions. Portugal is attempting to curb the tide of migration by granting a 100% tax exemption for five years. And other potential Portuguese migrants are reconsidering their decision. However, the Italian government is reviewing its tax exemption provisions due to their high cost. And the migrants are irked by the conditions set for the migrants who return. They are supposed to have children. One of them who was working in London and had returned to Italy is now thinking of moving back to London.
Portugal, Hungary, and Italy may try to deter people from leaving their nations by granting tax breaks, as Portugal and Italy have. But would tax breaks assist if the economies of Portugal and Italy do not improve? That is the bigger question. The aging population and reduction in birthrates are causes for concern in countries such as Portugal, as well as throughout Europe. It creates a larger challenge for the future.
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