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In 2025, Portugal—a country that attracts over 30 million tourists annually with its stunning scenery, mild climate, and relatively low cost of living—is facing a serious crisis: many young people are leaving the country due to low wages and rising housing costs.

Tourism accounts for approximately 10% of Portugal’s gross domestic product and remains a major industry; however, while tourism thrives, Portugal is losing a significant number of its own citizens. 

According to the Emigration Observatory, around 850,000 young Portuguese now live abroad, making Portugal the European country with the highest emigration rate.

Nearly 30% of the nation’s youth have moved overseas, with 70% of them between the ages of 15 and 19, according to the study Atlas of Portuguese Emigration. 

The primary cause of this problem is low wages; most young workers earn just enough to cover rent, making it difficult to save money or prepare for the future.

Housing costs are another major challenge, as Portugal currently has the highest ratio of housing prices to average income in Europe.

In Lisbon, housing prices and rents have doubled over the past decade, rendering apartments in the city center unaffordable for most young residents.

Even in the outskirts of Lisbon, the rent for a one-bedroom apartment is around €800 per month (approximately 1.2 million Korean won). 

This figure poses a significant financial burden when compared to the starting salaries and savings of young people. 

Consequently, many have protested on the streets, expressing anger that high housing costs and consistently low wages are forcing them to leave their country.

This situation, known as “brain drain,” is affecting Portuguese society. 

Highly educated professionals and skilled workers, such as doctors, are leaving the country to find better salaries and living conditions.

Portugal’s aging population is also a concern, with 24.5% of the population over 65 years old and increasing demand for healthcare.

However, many young doctors and nurses are emigrating, creating problems in the healthcare system. 

Those who remain face heavier workloads, prompting some to consider leaving as well, which eventually creates a vicious cycle.

This has led to shortages of medical staff and temporary closures of emergency services in some places.

To combat this, the government introduced a tax reduction policy this year aimed at encouraging young people to stay in the country. 

Those under 35 who earn less than €28,000 per year will receive an income tax cut starting at 100% for the first year and decreasing to at least 25% over ten years.

The government anticipates an annual tax revenue loss of about €670 million (1 trillion Korean won) annually, but is still willing to accept this loss.

Opposition parties have criticized the policy’s effectiveness, pointing out that many young workers earning minimum wage already do not pay income tax, so they will not benefit much from the tax cuts. 

Critics also argue that the policy mainly benefits young workers with higher salaries, who are less likely to leave Portugal.

For many young Portuguese already living abroad, migrating is more attractive than the government’s measures. 

They report having more free time and earning more than three times the salary they would make in Portugal.

Portugal invests about 5% of its GDP in education, but many skilled workers in advanced fields like aerospace and electronic engineering continue to leave because there are not enough suitable jobs. 

The economy remains heavily dependent on low-wage industries with low added value and lacks effective industrial policies to retain highly skilled workers.

If these problems go unaddressed, Portugal risks becoming only a popular tourist destination and a place for digital nomads rather than a country that keeps its younger population.