As living costs and taxes continue to rise in the UK, many young people are looking for opportunities abroad, finding countries like Portugal and Australia more appealing for their lifestyle, work-life balance, and financial benefits. This trend isn’t just about money—many young Brits are drawn by lower stress, better weather, and the chance for a fulfilling life. This article explores why an increasing number of young Brits are leaving the UK, the countries welcoming them, and what it means for the UK’s future.
When 30-year-old entrepreneur Charlie Baron decided to leave the UK for Portugal, he was ready for a change. He sold his UK business and moved to Lisbon, where he launched his new venture, Tribe, a co-working and social club. While Portugal has some challenges, like a longer process to start a business, Baron feels the lifestyle is worth it. Lisbon offers lower living costs, a better work-life balance, and quick access to nature—a far cry from London’s busy and expensive lifestyle.
Countries like Portugal have noticed this trend and want to attract young, mobile workers like Charlie. Two years ago, Portugal introduced a “digital nomad” program to bring in people who can work from anywhere. Now, the Portuguese government is offering tax breaks to people under 35 who earn less than €28,000 (about £23,000) annually. Finance Minister Joaquim Miranda Sarmento says these tax incentives aim to attract young workers to Portugal and keep more young Portuguese from leaving.
This approach isn’t unique to Portugal. Many countries are recognizing the benefits of welcoming skilled young professionals, as they face their own demographic challenges. In Portugal, for example, the working-age population has dropped from over 7 million in 2010 to around 6.5 million today, with predictions suggesting a further decline to 5.2 million by 2050.
Table 1: UK vs. Portugal Living and Working Comparison
| Factor | UK | Portugal |
|---|---|---|
| Work-Life Balance | Often work-focused | Better work-life balance |
| Starting a Business | Easier legal process | Lengthier process |
| Tax Incentives for Youth | Limited | Generous for < 35 earning < €28,000 |
| Cost of Living | High | Lower in comparison |
The Global Talent Competition
This “brain drain” is part of a broader global trend. Across the world, populations are aging, and the number of working-age people (aged 15-64) is expected to hit a peak and then start to decline. The United Nations projects that after reaching around 6 billion in the 2040s, the working-age population will start shrinking. This means that fewer workers will be available to support older populations, impacting economies.
Some countries, like China, face even starker projections due to factors like the one-child policy. China’s working-age population could fall from nearly 1 billion today to less than 300 million by the end of the century. Even without such strict policies, many rich countries face similar aging issues, creating a global competition for young workers.
Table 2: Global Working-Age Population Trends
| Year | Working-Age Population (Global) | Trend |
|---|---|---|
| 1970 | 2 billion | Growing |
| 2000s | 4 billion | Growing |
| 2040s | 6 billion | Peak expected |
| 2070 onwards | ~6.3 billion | Projected decline |
The Appeal of Moving Abroad
In the UK, many young people are considering leaving due to high taxes and rising costs. A survey by YouGov revealed that 30% of 18- to 24-year-olds want to move abroad, with over a third of British adults agreeing they might have a brighter future elsewhere. Job site Indeed also found that two-thirds of Britons are open to working abroad, with that number jumping to 75% among the youngest adults.
Why? Many feel that they could have a higher quality of life and earn better salaries in other countries. In a 2024 survey by Postgrad, nearly half of respondents felt that the UK isn’t ideal for young people, with worries about high house prices, slow wage growth, and high taxes.
Table 3: Top Reasons for Considering Moving Abroad
| Reason | Percentage of Respondents |
|---|---|
| Higher quality of life | Majority |
| Better job opportunities | ~50% |
| High UK taxes | Significant |
| High cost of living | Significant |
Popular Destinations: Portugal, Australia, and Beyond
With many young Brits looking for options, some are choosing familiar, English-speaking countries like Australia. According to migration lawyer Greg Veal, there has been a noticeable increase in inquiries from Brits wanting to move to Australia, driven by Britain’s high living costs and a damp summer. Some families, like Aimee and John from Kent, are making the move to give their children better access to outdoor activities and affordable schooling options.
In Australia, they look forward to affordable housing and higher wages relative to living costs, compared to the UK. The Australian government has made it easier for skilled tradespeople like carpenters to move, recognizing their value to the local economy.
Table 4: Cost of Living Comparison
| Country | House Prices | Wage-to-Price Ratio | Cost Efficiency |
|---|---|---|---|
| UK (South East) | High | Low | Low |
| Australia | Lower | Higher | High |
What This Means for the UK
As more young people leave the UK, there are concerns about the long-term impacts on the economy. Losing young professionals means fewer taxpayers and skilled workers, impacting growth and public services. While the UK has increased immigration, over half a million people also left the country last year, with around 100,000 of them British.
This demographic shift raises questions for policymakers on how to retain young talent. Countries like Luxembourg are taking active steps to keep young migrants, offering tax breaks, rent subsidies, and family-friendly benefits like free public transport and subsidized childcare.
In Britain, however, political priorities have focused more on reducing immigration rather than addressing emigration. If the trend continues, the UK could face a shortage of skilled workers and a decline in economic growth.
Table 5: Factors Contributing to UK Emigration
| Factor | UK Situation | Impact |
|---|---|---|
| High Living Costs | Rising | Emigration |
| Political Uncertainty | Frequent changes | Low confidence |
| Housing Affordability | Low | Emigration |
| Tax Burden | Increasing | Emigration |
The Future of Young Brits Abroad
As the global economy shifts, more young people are likely to consider moving for better opportunities, even beyond traditional destinations. Digital nomad visas, remote work options, and flexible residency policies are making it easier than ever to work and live abroad.
For many young people, the decision to leave isn’t about abandoning the UK but about finding a place where they can live well, afford a home, and enjoy a fulfilling lifestyle.
Read the Original Article: ‘A very nice life for a lot less money’: why young people are fleeing high-tax Britain
