PORTUGAL WANTS ITS EXILES TO RETURN

PORTUGAL WANTS ITS EXILES TO RETURN

The Portuguese government wants to encourage its expatriates to return to the country by promising tax benefits. The country is facing an aging society.

The Portuguese government has set itself the goal of bringing back the expatriates and proposes drastic tax cuts as of January 1. The current government is proposing a tax exemption for Portuguese who decide to return to the country.

This reduction is as follows

Someone who earns €2,000 a month will only have to declare €1,000 to the financial authorities. Instead of paying €4,480 in taxes, they will only pay €1,210.

These measures are "a necessity for the state, because according to the socialist government nearly 500,000 people left Portugal between 2010 and 2015"says journalist Sophie Lanson. This workforce is thus beginning to be lacking.

A controversial measure

For some, lowering taxes to encourage expatriates to return is not enough, but would be a plus to attract those with high incomes who are looking for tax advantages. In the country, the measure is controversial. Some Portuguese find the measure unfair and fear that it will cause rifts in society. The measure is only valid if you have been out of Portugal for at least three years and does not apply to dual nationals born outside Portugal.