The tax exemptions granted to foreign citizens who come to live, invest or work in Portugal have led many people to choose the country to live in Portugal. On the other side of the coin is the flight of residents, particularly young people, who head to other destinations in search of better living, working and/or salary conditions.

According to a Bloomberg report, based on data compiled by the Emigration Observatory in Lisbon, Portugal has the eighth highest emigration rate as a proportion of the population in the world, with around 25% of its population living abroad.

Rui Pena Pires, president of the entity, estimates that a person with qualifications is two or three times more likely to leave Portugal than someone without any skills, with the majority of qualified workers going to the United Kingdom, Ireland, Belgium and other countries of northern Europe.

The high tax burden, on employees and employers, is another problem that persists in Portugal, which has a progressive tax regime of 14.5% to 48%, recalls the agency, highlighting that average salaries are among the highest lows in Western Europe.

Tax incentives

At the same time, there are tax incentives granted to digital nomads, with Lisbon considered by many to be the European capital in this sector.

The numbers show that the number of Non-Habitual Residents (RNH) also soared in 2022, with the Government having decided to end the regime from 2024, a measure that is included in the proposed State Budget for 2024 (OE2024 ).