Abstract:

Brain drain refers to the migration of skilled individuals from developing countries to developed countries. The migration of skilled individuals from one country to another has negative effects on economic growth and it may cause labour shortages, reduced tax revenues, lagging behind in innovation and technological developments, income inequality and social tensions in the sending country. Therefore, prevention of brain drain, which is a source of concern for countries, and incentives for reverse brain drain and brain gain are among the important goals of countries. One of the important tools used in line with these objectives is tax policies. The main objective of this study is to analyse the tax policy instruments used by countries in preventing brain drain and encouraging reverse brain drain and brain gain. The study analyses the income tax incentives of 10 European countries towards brain drain. In the conclusion part, evaluations are made on the tax policies that are implemented.

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