A travel expert has issued Greece a warning about following Spain’s lead over property taxes. (Image: Getty)
A move by to implement a heavy tax on foreign buyers could spell disaster for its economy and industry, a travel expert has warned.
Spain’s Prime Minister, made a shock announcement on Monday (January 13), saying his country will looking to purchase homes abroad as part of the plan to tackle its housing affordability crisis and high rents.
Now, other European countries suffering from similar housing problems may to try to manage the crisis, including Greece.
Mike Harvey, managing director at , told Express.co.uk: “If Greece follows Spain’s lead in imposing property taxes on foreign buyers, it could risk a crucial source of economic stability and undermine its competitiveness against other Mediterranean destinations.”
With over 30 million visitors annually, Greece generated a remarkable 19.7billion euros (£16.6bn) from tourism in 2023, accounting for around 11% of the country’s GDP.
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Spain is set to begin heavily taxing foreign buyers looking to purchase holiday homes. (Image: Getty)
Mr Harvey warned: “While it’s difficult to predict precise figures, we may see this revenue drop if rise or foreign buyers are deterred from investing.
“For those who already own holiday homes, these changes could complicate the process of selling or finding buyers, potentially reducing their return on investment.”
As foreign tourists dreaming of retiring by the sea headed in search of summer homes on the mainland or one of its 227 stunning inhabited , last year, reading, “Tourists Go Home! Greek State Kills” and “Tourists Enjoy Your Stay In The Cemetery of Europe”.
The Greek government addressed housing pressures by in three central Athens districts – a city that hosts around 6.4 million tourists a year.
This sweeping ban was announced due to “a lot of pressure on society”.
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The number of Greek holiday homes actually now exceeds that of hotel beds. (Image: Getty)
It was revealed earlier this month that the number of Greek holiday homes actually now exceeds that of beds, sparking concern among locals about difficulties in accessing local housing and rising prices.
reported that, in 2023, the number of short-term rental options (one million) far exceeded the nearly 890,000 hotel rooms available.
The new regulation will also require all homes to be declared and threatens hefty fines for all illegal ones.
Between April and October of this year, the daily on short-term rentals will also rise to eight euros (£6.75) – up from 1.50 euros (£1.26) in previous years.
Brits hoping to move abroad to Greece will need to monitor its government closely as it responds to the threat of and the lack of affordable housing for locals.
“Greece remains a sought-after destination, ranking in the top 25 in our with over 360,000 relocation searches from Brits,” concluded Mr Harvey. “However, these changes could reduce international demand, which would further affect the property market and local economy.”