Portugal Reintroduces Tax Breaks to Attract Foreign Talent

Portugal’s new government plans to reintroduce tax incentives to attract skilled foreign workers and stimulate economic growth. The initiative, part of a package of 60 measures, excludes retirees to avoid additional burdens on the health system. The 20% flat rate income tax will apply to salaries and professional income, aiming to balance economic growth with affordable housing. The tax break is expected to appeal to large companies and Portuguese citizens living abroad, as the government also confirms the end of the “golden visas.”

Portugal to Reintroduce Tax Breaks for Skilled Foreigners

The centre-right government in Portugal is set to reintroduce tax breaks for skilled foreigners while excluding retirees from the benefits. The initiative, part of a broader economic stimulus package, aims to attract highly skilled workers to boost growth. The reintroduced regime will apply a 20% flat rate income tax to salaries and professional income, addressing previous criticisms. The move is crucial for attracting skilled workers and balancing economic growth with affordable housing.

Key Points

Tax Breaks Reintroduced

• Portugal is reintroducing tax incentives to attract skilled foreign workers.
• Retirees are excluded to avoid burdening the health system.
• The 20% flat rate income tax applies to salaries and professional income.

Government’s Economic Measures

• Part of a 60-measure package to stimulate economic growth.
• Large companies support the move to attract engineers, researchers, and managers.
• The government aims to balance economic growth with affordable housing.

Impact on Foreign and Local Citizens

• Beneficial for Portuguese citizens who have lived abroad.
• No reversal of the termination of “golden visas.”
• Retirees’ exclusion responds to previous criticisms from Nordic countries.

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