Experts predict Brits will flock to Cyprus amid Spain’s proposed property tax increase

Experts are warning that Spain’s proposed 100% property tax increase for non-EU citizens, including Britons, could drive potential investors to other European countries. The tax hike is part of Spain’s efforts to address its housing crisis, with Prime Minister Pedro Sanchez stating the aim is to provide more affordable housing for locals. In 2023, non-EU residents, including many Britons, purchased 27,000 properties in Spain as investments rather than for personal use.

Toby Leek, president of NAEA Propertymark, acknowledged that while Spain’s intentions to solve its housing crisis are understandable, the proposed tax increase is extreme and could discourage British buyers. He suggested that many Britons will now consider alternative locations, such as Cyprus and Greece, which offer lower property taxes. Similarly, Stephen Abletshauser of Spencer West LLP warned that this move could backfire, with countries like Turkey, Italy, and Malta potentially benefiting as they compete for wealthy non-residents looking for homes in sunnier climates.