Brain gain Can a radical tax scheme convince the country's brightest to stay?

In the autumn of 2018, I moved to Lisbon for a month-long course at the Universidade .de Lisboa.

- Adam Almeida

I struggled to find any short-term sublets in the city, so the university stepped in to offer me a shared room in an all-male dormitory. I was surrounded by young, highly educated Portuguese students who all agreed upon one thing: after graduating, they would be leaving the country.

Now the coalition government, the centre-right Aliança Democrática, is using this year's budget to try to stem this brain drain and keep young graduates in Portugal. The proposed policy is a progressive, multi-year tax holiday for those aged 18 to 35 on annual salaries of up to €28,000 ($29,200). But is this the right approach?

Emigration is a huge issue: 30% of young people born in Portugal live and work abroad, representing the highest emigration rate in Europe.