Countries Offering Incentives for Settlement Due to Aging Populations

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Italy

Italy, particularly its rural regions, faces significant population decline due to low birth rates and an aging population. By 2050, 22% of the global population over 60 is expected to live in low- and middle-income countries, but Italy, as a high-income nation, is already grappling with a high proportion of elderly citizens. To address this, several regions have introduced relocation incentives:

• Calabria: Offers up to €28,000 (approximately $30,358 USD) to individuals under 40 who relocate to one of nine villages with fewer than 2,000 residents. Applicants must move within 90 days and either start a business benefiting locals or fill an in-demand job.

• Presicce-Acquarica: In Puglia, this region provides up to €30,000 (about $32,526 USD) for purchasing and registering a house as a primary residence, plus €1,000 per newborn to encourage family growth. These measures aim to revitalize communities and counteract the aging demographic, as Italy’s working-age population is projected to decline by 10% by 2060.

Japan

Japan has one of the world’s oldest populations, with over 30% of its citizens aged 60 or older, and a birth rate that fell below 800,000 in 2022. The country’s workforce is expected to shrink by 8 million by 2030, exacerbating economic challenges. To address this, Japan’s Regional Revitalization Program offers financial incentives for families relocating to rural areas:

• Payments of up to $10,000 are available for non-EU/EEA and non-Swiss citizens willing to settle in depopulated regions. These incentives aim to boost local economies and address labor shortages in rural areas, where the aging population is particularly pronounced.

Greece

Greece is experiencing a population decline, with a shrinking workforce and an increasing proportion of elderly citizens. The island of Antikythera offers a unique incentive to attract families:

• A monthly stipend of nearly $600 for the first three years (totaling $21,600) is provided to families who relocate. This program targets families to ensure long-term population growth, as Greece aims to stimulate its economy and counter the demographic shift where the elderly outnumber younger generations.

Austria

Austria faces a shortage of skilled workers due to its aging population, with the working-age population expected to decline significantly by 2050. The Red-White-Red Card Program targets non-EU/EEA and non-Swiss citizens:

• Offers $10,000 along with a one-year visa to skilled workers relocating to Austria. This initiative addresses labor shortages and aims to integrate skilled immigrants into the workforce, supporting economic stability in a country with a high quality of life but demographic challenges.

Ireland

Ireland’s aging population and rural depopulation have prompted targeted incentives, particularly for entrepreneurs:

• The Start-Up Entrepreneur Program provides $50,000 and a one-year visa to entrepreneurs and small businesses willing to relocate and start companies. This program seeks to stimulate economic growth in rural areas and leverage the EU market, addressing the shrinking working-age population and fostering innovation.

Croatia

Croatia’s town of Legrad, near the Hungarian border, is combating population decline with an innovative program:

• Homes are sold for as little as 1 kuna (about $0.13 USD), with additional financial support for renovations. Applicants must be under 45, in a partnership or married, have a clean criminal record, and not own other property. This initiative has increased Legrad’s population, aiming to balance the demographic shift caused by an aging population and low birth rates.

Chile

Chile is investing in becoming a tech hub while addressing its aging population through the Startup Chile program:

• Offers financial incentives to entrepreneurs willing to relocate and start businesses, particularly in innovative sectors. This initiative aims to attract a younger, skilled workforce to offset the demographic challenges of an aging population and boost economic growth.

United States

While not a national program, certain U.S. cities and states offer relocation incentives to address local population declines and aging demographics:

• Rochester, New York: The “Move to Rochester Grant” provides up to $15,000 for remote workers with full-time jobs who relocate within six months. The program targets top talent to fill gaps in industries like manufacturing and health imaging, supporting economic growth in areas with aging populations.

• Tulsa, Oklahoma: Offers $10,000 to remote workers relocating for at least a year, aiming to attract younger professionals to balance the demographic structure.

• West Virginia: The Ascend West Virginia program provides over $20,000, including $12,000 cash and perks like free outdoor activities, to attract workers to rural areas.

Challenges and Considerations

These programs reflect a global trend where aging populations strain economies due to shrinking workforces and rising healthcare and pension costs. By 2050, the global old-age to working-age ratio is expected to nearly triple, from 20 per 100 in 1980 to 58 in 2060. Countries are using financial incentives to attract younger residents, particularly to rural areas, to boost labor participation and economic productivity. However, challenges remain:

• Integration: Programs like Austria’s face hurdles in recognizing foreign credentials, which can limit the effectiveness of skilled immigration.

• Effectiveness of Incentives: In Japan and South Korea, large financial incentives for childbearing have had limited success in reversing low birth rates, suggesting that financial rewards alone may not fully address demographic challenges.

• Sustainability: Increased immigration and incentives must be paired with reforms like raising retirement ages or promoting phased retirement to ensure long-term economic stability.

Countries like Italy, Japan, Greece, Austria, Ireland, Croatia, Chile, and the United States are actively offering financial incentives to attract new residents to combat aging populations. These programs focus on repopulating rural areas, attracting skilled workers, and encouraging family growth to balance demographic shifts. While these initiatives show promise, their success depends on addressing integration challenges and implementing broader policy reforms to support aging societies.