Portugal to End Generous Tax Policy for Foreign Tech Workers, Sparking Concerns of Talent Exodus
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Portugal's tech sector saw huge growth since 2010 due to generous tax policies like the non-habitual resident (NHR) statute that gave favorable tax rates to foreign workers. This attracted thousands of tech professionals.
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In October 2022, Portugal announced it will scrap the NHR statute for new entrants starting 2024, while existing beneficiaries can keep the lower rate.
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The change caused concern among current NHR beneficiaries worried their tax rate may also go up. The government wants a more targeted program for researchers.
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Supporters say NHR fueled housing price hikes and inequality. Critics argue it was key to attracting talent Portugal lacked.
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Some tech workers say while they understand the change, the new higher tax rate may prompt them to leave Portugal.