Exports of Spanish wine to Britain have plummeted after the UK government introduced a new tax regime in February. The value of Spain’s wine exports to the UK fell to €111million (£94.7m) in the first quarter of 2025.
This represents a whopping 7.5% drop and a huge blow for Spain’s wine producers, for whom the UK has been a major market. Other wine-producing countries feeling the heat from the post-Brexit taxes include France and Italy. European Union countries saw declines in exports of 6% and 6.7% respectively in the first four months of the year.
The new UK tariff system taxes wine based on alcohol strength rather than liquid volume.
This has impacted Spanish wines particularly hard, as they are famous for their higher alcohol content due to warmer growing conditions.
Drinks importers must now pay more for wines above 12.5% alcohol – a category that includes many classic Spanish reds.
UK buyers are reportedly paying around 20% more for many full-bodied reds, which is driving up prices in the shops and supermarkets.
“It’s putting our prices much, much higher,” said Nicola Thornton, founder of the Spanish export company Spanish Palate.
“The tax is definitely a conversation that’s in the foreground. Everyone is asking: what’s the alcohol level?”
The UK’s move is in effect penalising the very characteristics — such as richness, ripeness, and body — that make Spanish wines appealing.
The result is a loss of competitiveness, diminished profitability, and a need to rethink strategies for both product and market diversification.
There is some good news still for Spanish wine producers, who have seen their products thrive in the US market.
Exports of Spanish wine to the US rose 9% in the same period to €119.6 million (£102m), driven by strong importer demand and fears of possible future US tariffs.
But experts say this alone may not be enough to offset the UK decline.