The Talent Drain: Why Young Workers Are Leaving Portugal for Brighter Futures Abroad

In the wake of Portugal’s ongoing struggle to retain skilled young workers, the story of Duarte Dias, a software engineer who moved from Portugal to work for Microsoft’s Dublin and Seattle offices, highlights the challenges faced by the country. Despite initial job offers in Portugal that were financially insufficient, Dias’s move to Ireland nearly doubled his income and led to an even more lucrative position in the U.S. The Portuguese government has attempted to combat this emigration through tax incentives like IRS Jovem, aimed at reducing taxes for younger workers. However, experts argue that these measures fall short in addressing the root issues, such as higher salary prospects abroad, with Portugal’s tax burden being one of the highest among OECD countries. Despite government efforts, many young professionals find the job market more enticing outside Portugal due to better income opportunities and quality of life factors. Rita de La Feria, a tax law expert, emphasizes that this issue is not unique to Portugal and that many young people initially leave with hopes of returning but find better lives abroad. Ultimately, unless significant changes are made to salary structures and career opportunities, the trend of skilled workers leaving Portugal will likely continue.