I’d attribute that problem to Portugal specifically though. Especially to the taxation policies that incentivized people to move to Portugal but without requiring them to specifically set up business in Portugal. This resulted into many people working in other countries to move to Portugal to pay lower taxation. This indeed increased prices, especially for rent but also in general, as those people had higher purchasing power but did not significantly increase salaries. There is a reason why Lisbon is the heaven of digital nomads.
I hear things are changing, but I don’t know too much about it. Indeed I know many people in Lisbon who work mostly in other countries. Sure they pay taxes, but that doesn’t directly translate into higher paying jobs.
The tax incentives for digital nomads are a big issue for sure. I love meeting digital nomads, always a fun conversation, I just don’t understand why we should subsidize highly paid individuals looking for a cheap place to live for a while. They do not create roots or care much about the country they live in. If things go south they will leave and the people of the country they enjoyed will be burdened with all the issues.
I say we welcome all digital nomads if they wish to live with us, but they should pay their due like everyone else.
Indeed, however this is not a common problem across Europe. That would not explain otherwise why most digital nomads are mostly Europeans. Such issue was mostly generated by the specific tax policies of Portugal who incentivized rich people to move into the country without ensuring this would lead to a common good.
All in all, I do not believe this is a problem strictly related to the fact that Portugal is part of the European Union, but rather the result of poor policy planning.
Mind you, I’m not saying the policies were without reason, but probably did not obtain the expected results.
I’m mentioning this issue in the context of the EU, due to the EU naturally allowing a more free flow of people and capital. Which is great for the “core” of the EU and at the same time the cause of big issues in the peripheries.
The same would occur in any kind of free movement agreement.
I give the benefit of the doubt to those who implemented this ideas, I understand the logic, I’m just not convinced by the results.
I’d attribute that problem to Portugal specifically though. Especially to the taxation policies that incentivized people to move to Portugal but without requiring them to specifically set up business in Portugal. This resulted into many people working in other countries to move to Portugal to pay lower taxation. This indeed increased prices, especially for rent but also in general, as those people had higher purchasing power but did not significantly increase salaries. There is a reason why Lisbon is the heaven of digital nomads. I hear things are changing, but I don’t know too much about it. Indeed I know many people in Lisbon who work mostly in other countries. Sure they pay taxes, but that doesn’t directly translate into higher paying jobs.
The tax incentives for digital nomads are a big issue for sure. I love meeting digital nomads, always a fun conversation, I just don’t understand why we should subsidize highly paid individuals looking for a cheap place to live for a while. They do not create roots or care much about the country they live in. If things go south they will leave and the people of the country they enjoyed will be burdened with all the issues.
I say we welcome all digital nomads if they wish to live with us, but they should pay their due like everyone else.
Indeed, however this is not a common problem across Europe. That would not explain otherwise why most digital nomads are mostly Europeans. Such issue was mostly generated by the specific tax policies of Portugal who incentivized rich people to move into the country without ensuring this would lead to a common good. All in all, I do not believe this is a problem strictly related to the fact that Portugal is part of the European Union, but rather the result of poor policy planning. Mind you, I’m not saying the policies were without reason, but probably did not obtain the expected results.
I’m mentioning this issue in the context of the EU, due to the EU naturally allowing a more free flow of people and capital. Which is great for the “core” of the EU and at the same time the cause of big issues in the peripheries.
The same would occur in any kind of free movement agreement.
I give the benefit of the doubt to those who implemented this ideas, I understand the logic, I’m just not convinced by the results.