Many European countries are having huge problems with post-pandemic tourism as people get out to explore after a year or more of being stuck inside. Increased tourism has led to price hikes in a number of sectors, particularly housing, which is forcing locals out of their own neighborhoods. There's also the issue of tourists not always being well behaved but that's a separate conversation.
Spain has been at the forefront of trying to find ways to manage large numbers of tourists. The entire country is a magnet for travelers, especially the city of Barcelona. Spain's government has instituted a number of new rules and regulations, some of them ever-so-slightly draconian, to try to manage the problem. Now, the country is the first in line tackling the problem of part-time British homeowners who are only around during the holidays.
As the number of British-owned holiday homes and short-term vacation rentals increase, the number of the homes on the market decreases. This is creating market shortages and driving the costs up for locals struggling to find somewhere to live. And it's a problem that has spread far beyond the borders of Spain. Other popular British holiday spots such as Portugal, France, and Greece are having similar issues. France saw an increase of 400% in short-term vacation rental properties in 2024.
While each country is tackling the problem in their own way, Spain's method is quite predictably the most aggressive. Their government is proposing a 100% tax on any foreign bought homes, which does include the British. If this is starting to sound like Spain and other countries don't want foreigners buying homes or any more short-term rentals, you would be right. The balance between tourists and locals is precarious at best, and these measures hope to maintain that.