Several countries including France and Portugal are reportedly taking action in relation to British holiday homes. It follows the announcement that non-resident citizens from countries outside the European Union, such as the UK, could face substantial tax bills for property purchases in Spain.
The news from the Spanish Prime Minister has caused a stir among Brits dreaming of Mediterranean retirement. However, those hoping to settle in sun-soaked locations like Portugal, France, or Greece may now face additional hurdles. In Portugal, there’s growing concern over affordable housing, with protesters brandishing banners stating: “I have to choose between paying for a house or eating.”
Last year, France tackled housing availability issues by introducing legislation to tighten controls on the burgeoning short-term tourist rental market, which saw a rise from 300,000 to 1.2 million listings between 2016 and 2024. Similarly, the Greek government took action last year by implementing a widespread ban on new short-term rental licences in key parts of Athens, aiming to alleviate “a lot of pressure on society” caused by this trend. For the latest restaurant reviews, sign up to our food and drink newsletter here
Prime Minister of Spain Pedro Sanchez announced a huge tax hike that can impact Brits buying properties in Spain
(Image: Getty Images)
Spain is taking a firm stance on second home ownership, emphasizing the need for affordable housing. The nation is introducing an ambitious set of policy changes designed to revamp the building industry, ensure access to reasonably priced rentals, and incentivise compliance with rental laws, reports the Liverpool Echo.
This includes imposing a tax that could reach 100% on properties bought by non-European Union residents, which would affect British citizens, according to Mail Online. Despite this, Brits have long been attracted to Spain for its sun-drenched luxury villas that come at a much lower cost than those in the UK.
However, some have suggested these are not the “affordable” homes that the average working Spaniard is desperate for, and that a surge of overseas property investors has only exacerbated the sense that locals are being displaced in favour of global buyers. Spanish Prime Minister Pedro Sánchez pointed out that non-EU residents purchased 27,000 houses and flats in Spain in 2023 alone, “not to live in them, but mainly to speculate”.
In Greece, another hotspot for British holidaymakers, Athenians vented their displeasure last summer with graffiti such as: “Tourists Go Home! Greek State Kills.” A particularly striking image depicted two buildings labelled “Airbnb” ablaze, beneath the declaration: “Tourists Enjoy Your Stay In The Cemetery Of Europe”.
Angry demonstrators have taken to the streets of Athens, venting their frustration with the escalating influx of tourists flocking to the city. The protestors chanted passionately: “They are taking our houses while they live in the Maldives” – a direct jab at the wealthier property owners renting out their homes on Airbnb platforms.
Ex-resident of Metaxourgio, Anna Theodorakis, shared her sombre outlook with France24, stating the situation in the once-bustling city is becoming “very depressing”. “I think the answer is to go in the streets and block everything and just not do something because people are losing their homes,” she expressed. Despite welcoming a record 32 million visitors in 2023, Greek authorities remain hesitant to broadcast any official statements that could potentially dissuade foreign travellers.