PORTUGAL WANTS ITS EXILES TO RETURN

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 expatriates and proposes drastic tax cuts from January 1. The current government is proposing a tax exemption for Portuguese nationals who decide to return to the country.

This reduction is as follows

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

These measures are "a necessity for the state, as according to the Socialist government nearly 500,000 people left Portugal between 2010 and 2015"explains journalist Sophie Lanson. This workforce is starting to be in short supply.

A controversial measure

For some, lowering taxes to encourage expatriates to return is not enough, in their view, but would be a plus in attracting high-income earners looking for tax breaks. At home, the measure is causing controversy. Some Portuguese feel that the measure is unfair, and fear that it will fracture society. The measure is only valid on condition of having left Portugal for at least three years, and does not apply to dual nationals born outside Portugal.