Move To Portugal And Get 10 Years Of Tax Breaks If You’re 35 Or Younger
If you’ve always had your sights set on moving abroad but aren’t sure to where, have you ever considered Portugal?
The Portuguese government is dropping taxes for those 35 years and under to encourage foreigners to move to the country, and young residents to stop from emigrating. This could benefit anywhere from 350,000 and 400,000 young people.
Portugal has one of the lowest salaries in Europe, causing many people (especially the youth) to move out of the country in hopes to make better wages elsewhere. For context, the monthly minimum wage in the country comes to €870 (~$945). A full time employee on minimum wage in NYC makes a monthly income of about $2,773 before taxes. On top of Portugal’s low wages, those earning the average salary in the country currently pay a 26% rate on taxes.
So how many young people have really left Portugal? According to the National Statistics Institute, 361,000 people between the ages of 15 – 35 emigrated from the country between 2008 – 2023.
This new tax break from the Portugal government would relieve those 35 and under (both foreigners and locals) making up to €28,000/year (~$34,000) from paying taxes their first year. During years two through four, this demographic would be exempt from paying 75% of taxes; then 50% exempt in five to seven years, and 25% during years eight and ten.
Portuguese leaders like finance minister, Joaquim Miranda Sarmento, thinks the tax plan would be “a fundamental tool to meet the objective of retaining and attracting young people to Portugal.”
If this sort of tax breaks interests you, Portugal offers numerous visas to move there such as the Golden Visa, D8 Visa (Digital Nomad Visa), D7 Visa and so on.
The tax plan, which would cost the country a yearly €650M, was revealed as part of the 2025 budget and still needs to be passed with a parliamentary vote on October 31st, 2024.
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