Spain property tax: Holiday destinations set to follow Spain and tax Brits buying homes - crushing dreams of sun-soaked life

Non-EU residents, including UK citizens, may face a tax of up to 100% when purchasing property in Spain, with the Spanish government planning on implementing such measures. Prime Minister Pedro Sánchez said that the “unprecedented” regulations is a necessary step in tackling the nation’s housing crisis.

Sanchez was keen to emphasise that this is a global issue, citing housing prices that had swelled 48% in the past decade across Europe. Spain is one of the worst hit by demand for vacation properties, welcoming more than 88.5 million visitors in 2024 alone.

In Portugal, similar problems with short-term holiday rentals and a shortage of affordable housing has seen residents mobilise in cities across the country. In September, a 'housing rights movement' group, Porta a Porta, called for protests in as many as 22 cities.

Between 2015 and 2021, rents in the country jumped 112 per cent, according to Eurostat. This is unaffordable for the many, with 67 per cent of workers earning less than 1,000 euro a month in 2021 (£843.90).

France took steps late last year to temper growing frustration over the availability of housing, passing a long-awaited bill to tighten regulations on the short-term tourist rental market. Analysis shared last year assessed that house prices in mainland France had increased by an average of 27.8 per cent over the last five years.

With more than 100 million visitors each year, as of 2023, France also has to contest with the challenge of short-term rentals and holiday homes. This tends to be concentrated on Paris and some of the major port cities.

The Greek government was also pressed to act last year, announcing a sweeping ban on short-term rental licences in three central districts in Athens due to 'a lot of pressure on society'. With demonstrations growing across the continent, other dream destinations may soon be pressed to follow Spain.