An expert has issued a warning to Brits as a European countries may look to follow Spain’s lead and impose a tax of up to 100%.
There are plans to impose the levy on the value of properties bought by non-residents of the Iberian state from countries outside the EU.
Now, an expert has said that other countries popular with British purchasers might follow suit amid concern that locals are being priced out by foreigners.
Mike Harvey, managing director at 1st Move International, says that the proposal has “set a significant precedent”, and other high-tourist countries such as France, Greece, and Portugal “now considering similar measures”.
2024 relocation data has ranked Spain, Portugal, Germany and France among the top 10 relocation destinations for Britons, the expert highlighted. But rising costs and new restrictions could prompt a shift in these trends, he added.
Mr Harvey suggested that the tax could have negative effects on the property market and the wider economy. He said: “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.”
“A 100% tax on foreign buyers could hurt Greece’s competitiveness and economic stability. The country is already tackling 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.”
The expert also emphasised that France’s tourism contributes around 9% of its GDP, with $68.6billion in 2023 tourism revenue – up 110% from 2020. “Additional taxes on foreign buyers could strain the market,” Mr Harvey said, “slowing property investment and tourism.”
He added: “Portugal’s tourism contributes to 15% of GDP, reaching €25.1billion in 2023 with a predicted revenue of €66.5billion by 2034.
“However, with the introduction of new property taxes on foreign buyers, this growth could be at risk. Portugal remains a top destination for Brits, but the introduction of these taxes could dampen that interest, affecting both the property market and the broader economy.”
As regards where Brits might be heading next, Mr Harvey said that Cyprus is becoming an increasingly popular choice for Brits looking to relocate.
He added: “Our internal data shows it was the 6th most sought-after destination between 2022 and 2024. The island offers a great Mediterranean lifestyle, featuring sunny weather, affordable living, and a welcoming environment.
“With English widely spoken, expat-friendly tax perks, and a relaxed yet lively atmosphere, it’s clear why Cyprus is gaining traction as a top destination for those seeking a vibrant lifestyle abroad.”
