France and Portugal may follow Spain in increasing taxes on holiday homes for Brits – Wales Online
As Spain announced a tax hike on property purchases for non-resident citizens outside the EU, including the UK, concerns have arisen over other countries potentially taking similar measures. This announcement has caused alarm among Brits who dream of owning holiday homes in sunny destinations like Portugal, France, and Greece. In Portugal, there is a growing worry about affordable housing as protesters highlight the difficult choice between paying for a house or basic necessities like food. Similarly, France addressed housing availability concerns by implementing stricter regulations on short-term tourist rentals. The Greek government also took steps to control the surge in short-term rental properties in key areas of Athens to alleviate pressure on society.
Spain’s bold move towards affordable housing includes a comprehensive set of policy changes aimed at revamping the construction industry, ensuring access to reasonably priced rentals, and promoting adherence to rental laws. One key aspect of these changes is the introduction of a tax that could potentially reach 100% on properties bought by non-EU residents, impacting British citizens. Despite the allure of Spain’s luxury villas at lower costs compared to the UK, some argue that these properties are not the affordable housing solution needed by local Spaniards. The influx of overseas property investors has exacerbated the sentiment that locals are being displaced in favour of international buyers.
Spanish Prime Minister Pedro Sánchez highlighted that in 2023 alone, non-EU residents purchased 27,000 properties in Spain mainly for speculative purposes rather than for residency. In Greece, a popular destination for British tourists, Athenians expressed their discontent through graffiti messages like “Tourists Go Home! Greek State Kills.” Demonstrators in Athens voiced their frustration with the increasing number of tourists flooding the city and the impact on housing availability. The sentiment of being pushed out of homes by wealthier property owners renting on platforms like Airbnb has led to heated protests in the Greek capital.
The concern over holiday homes for Brits extends to France and Portugal, where actions are reportedly being considered regarding British-owned properties. France recently enacted legislation to regulate the booming short-term tourist rental market, which saw a significant rise in listings between 2016 and 2024. Meanwhile, Portugal is grappling with issues of affordable housing, prompting protests and calls for action to address the housing crisis. As the Mediterranean countries navigate the complexities of property ownership and rental regulations, it remains to be seen how these developments will impact British holidaymakers and homeowners in the region.
Despite the challenges posed by tax hikes and housing affordability concerns, the allure of owning a holiday home in Mediterranean destinations remains strong for many Brits. The evolving landscape of property ownership regulations in Spain, France, and Portugal underscores the need for a balanced approach to address the housing needs of both locals and international investors. The protests and discontent expressed by residents in these countries reflect the broader tensions surrounding property ownership and tourism. While Mediterranean countries seek to strike a balance between attracting foreign investment and ensuring housing affordability for their citizens, the fate of British holiday home ownership in these regions hangs in the balance.