Portugal is planning to become a haven for young adults by giving them a decade-long tax break in an attempt to curb brain drain. Under plans proposed by Portugal’s centre-Right government, workers under 35 would be exempt from paying income tax for the first year of their careers,

Portugal is planning to turn itself into a low-tax haven for young adults by offering a decade of tax breaks to people starting their careers in an effort to halt a growing brain drain.

As part of the annual budget, being presented to parliament on Thursday, the centre-right government of Luís Montenegro aims to reduce income tax for under-35s to a maximum of 15%. The tax rate for Portuguese earning the average salary of just under €20,000 (£16,700) is currently 26%.

“Our goal is truly to increase our ability to retain talent, to keep our young people in Portugal, ensuring that fewer of them leave, and that those who do can return,” Mr Montenegro said this summer. “We want a tax system that is more youth friendly.”

Prime Minister Luis Montenegro wants to see income tax lowered for under-35s, specifically those earning up to €28,000 (£23,400).