Property sector in danger? More countries may follow Spain’s tax moves

France, Greece and Portugal could also follow Spain’s lead and potentially make significant property tax changes in an effort to tackle their respective housing crises and make real estate more affordable to residents.

Following Spain’s recently proposed 100% property tax on non-EU buyers, there have been increasing concerns about other major European countries such as Greece, France and Portugal potentially doing the same.

New research from relocation specialists at 1st Move International has warned that this scenario could possibly have a major impact on the EU’s property sector, making it especially difficult for UK buyers, among others, to buy second homes abroad.

In 2024, according to 1st Move International data, Portugal, Spain, France and Germany were some of the most popular destinations for British buyers to relocate to. However, tighter restrictions and soaring costs could potentially lead to other favourable destinations emerging.

Mike Harvey, managing director at 1st Move International, said in an email note: “Spain’s decision to impose taxes on foreign property buyers has set a significant precedent, with other high-tourist countries like France, Greece, and Portugal now considering similar measures.

“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.”

How could a potential 100% property tax impact European economies?

Countries such as France, Greece and Portugal are already dealing with an escalating overtourism problem, which has pushed rental prices up, making it much harder for locals to find affordable housing.

Spain has also announced that its golden visa programme will be ending on 3 April 2025. Spain’s golden visa programme, otherwise known as the residency by investment programme, allows foreign citizens to legally reside in Spain in exchange for an investment. This investment can be made in property, government bonds or company shares.

The programme is mainly ending to tackle Spain’s housing crisis, as well as make real estate more affordable for locals.