Following Spain’s recently proposed 100% property tax on non-EU buyers, concerns are growing about similar measures potentially being implemented in other major European countries like Greece, France, and Portugal.
New research from relocation specialists at 1st Move International warns this could significantly impact the EU’s property sector, particularly for UK buyers.
In 2024, Portugal, Spain, France, and Germany were popular destinations for British buyers. However, stricter regulations and rising costs may lead to new, more favorable locations emerging.
Mike Harvey, managing director at 1st Move International, stated: “Spain’s decision to impose taxes on foreign property buyers sets a precedent, with other high-tourist countries like France, Greece, and Portugal now considering similar measures. While these policies aim to address housing shortages, they could have unintended consequences, impacting digital nomads, retirees, and international buyers who contribute to local economies.”
How could a potential 100% property tax impact European economies?
Countries like France, Greece, and Portugal are grappling with overtourism, which has driven up rental prices and made affordable housing scarce for locals.
Spain is also ending its golden visa program on April 3, 2025. This program allowed foreign citizens to reside in Spain in exchange for investment in property, government bonds, or company shares. The program’s termination aims to alleviate the housing crisis and increase affordability for locals.
Greece, Portugal, and France are also implementing measures to manage overtourism, such as restricting short-term rentals, emphasizing sustainable tourism, and promoting lesser-known destinations.
However, these countries still heavily rely on tourism and foreign investment, especially in real estate, to support their economies. A 100% property tax could therefore have significant economic repercussions if alternative income sources and investment channels aren’t developed concurrently.
Harvey added: “A 100% tax on foreign buyers could hurt Greece’s competitiveness and economic stability. The country is already addressing housing pressures by banning new short-term rental licenses in key Athens areas. Further changes could reduce investment and affect both the property market and the local economy.
“In France, tourism contributes around 9% of GDP, generating $68.6 billion (€66.4bn) in revenue in 2023 – a 110% increase from 2020. Additional taxes on foreign buyers could strain the market, slowing property investment and tourism.
“Portugal’s tourism contributes 15% of GDP, reaching €25.1bn in 2023, with a projected revenue of €66.5bn by 2034. However, this growth could be jeopardized by new property taxes on foreign buyers. Portugal remains a popular destination for Brits, but these taxes could dampen that interest, impacting both the property market and the broader economy.”
Where could British buyers move to next?
With popular European destinations facing increased tax and cost uncertainties, many British buyers are exploring options abroad.
According to 1st Move International, the US, Australia, the UAE, Canada, and New Zealand were the top destinations for British expats between 2022 and 2024. Other appealing locations included Cyprus, South Africa, Singapore, Saudi Arabia, and the Cayman Islands.
Motivating factors include better career opportunities, lower taxes, a higher quality of life, and appealing landscapes. A lower cost of living and the absence of language barriers in some of these countries are also contributing to their appeal.
Harvey noted: “Cyprus is increasingly popular for Brits looking to relocate. Our data shows it was the 6th most sought-after destination between 2022 and 2024. The island offers a desirable Mediterranean lifestyle with sunny weather, affordable living, and a welcoming environment. With English widely spoken, expat-friendly tax benefits, and a relaxed atmosphere, it’s attracting those seeking a vibrant lifestyle abroad.”
