Spain is becoming less appealing to Brits amid tighter regulations and rising taxes (Image: Getty)
Boasting an average of 300 days of sunshine a year, a lower cost of living and an impressive healthcare system, Spain has long been a favourite for Brits looking to relocate abroad, whether for retirement or that desirable remote-working lifestyle. However, over the past few years, the southern European nation has implemented significantly tighter regulations for expats, particularly non-EU citizens. On top of this, rising taxes and a growing anti-tourist movement have emerged.
As a result, it’s not hard to see why British expat attention is increasingly shifting to other European countries, including just across the border. Already home to nearly 50,000 Britons, Portugal is increasingly being chosen for its stability, culture and long-term property value. Meanwhile, Spain scrapped its popular Golden Visa Programme last April, while Portugal has stuck to its guns and updated its own version.
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Portugal is becoming increasingly popular among Brits wanting accessibility and a safe future, Nikolaus Thomale says (Image: Getty)
“Portugal is increasingly capturing the attention of British property buyers looking for a sunny European lifestyle that feels both accessible and future-proof, » Nikolaus Thomale, co-founder and MD at MYNE, told the Express. « With its strong infrastructure, attractive coastline and long-established appeal for international residents, the country offers a compelling mix of desirable holiday destinations and property stability ».
Mr Thomale said his business has seen a « clear rise » in demand from British buyers, who want the familiarity of a Mediterranean climate alongside a straightforward and predictable property market, with interest in co-owned homes in Portugal having grown by 104% year-on-year, according to MYNE data.
“The Algarve, in particular, continues to stand out, with British demand up 114% year-on-year, » he added. « Its combination of natural beauty, well-developed amenities and welcoming long-term outlook resonates strongly with buyers who are thinking not just about holidays, but about putting down roots in a place that supports sustainable living and long-term ownership.”
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The Algarve has seen British demand up 114% year-on-year, according to MYNE data (Image: Getty)
In recent years, Spain has launched an intense crackdown on expats, particularly non-EU citizens from the UK, focusing on stricter residency renewals, housing and border controls. Renewals of non-lucrative visas now require a higher evidence of financial stability, such as over €26,000 (£22,600) per year for a single applicant. With the arrival of the European Entry/Exit System (EES) and the incoming ETIAS authorisation system, 90 and 180-day stays will also be strictly tracked, eliminating the grace period and automatically identifying overstayers.
The Spanish government is also targeting non-resident, non-EU buyers with proposals for a 100% tax on property purchases or outright bans on purchasing to combat housing shortages for locals. Meanwhile, hostility towards tourists and expats has been growing as locals complain of being forced out of their own cities by rising rents and housing shortages.
A final nail in the coffin for expats in Spain has been the government’s decision to abolish its Golden Visa Programme in April. This ended the initiative that granted residency to non-EU nationals who purchased property worth at least €500,000 (£435,400) as part of Pedro Sánchez’s bid to combat the housing crisis and property costs. Portugal, however, has retained its own Programme.
Pedro Sánchez scrapped Spain’s Golden Visa Programme to combat the housing crisis and property costs (Image: Getty)
“Across southern Europe, governments are reassessing how best to balance international investment with local housing needs. In that context, Portugal’s decision to evolve rather than withdraw its Golden Visa programme has helped it remain an attractive and stable option for international buyers, » Mr Thomale said.
“By reforming the scheme and offering residency routes through investment in funds, businesses, or cultural projects, Portugal has retained a level of flexibility that many buyers value highly. This is an attractive and forward-thinking approach because it allows Portugal to continue welcoming long-term investors while being mindful of local communities and housing pressures.
“For UK buyers in particular, flexibility and sustainability are increasingly important, » he added. « In popular regions like Portugal, innovative ownership models such as co-ownership are making prime real estate more accessible while also encouraging year-round use, supporting a more balanced form of tourism and investment that benefits local economies over the long term.”
Portugal’s Golden Visa offers non-EU citizens a path to EU residency and citizenship by making qualifying investments, such as €250,000 (£217,700) in funds, with minimal stay requirements of just seven days a year and benefits like Schengen travel, with real estate no longer a direct route. There are options for family inclusion and citizenship after five years, subject to a language test.
