Spain has long been a favourite destination for British and non-EU buyers seeking the dream Mediterranean lifestyle. However, recent political discussions around increasing property taxes for non-EU buyers have caused concerns among international investors. While it remains to be seen whether these proposals will become law, they highlight a growing trend: governments introducing stricter regulations to control foreign property investments.
For those reconsidering their options, several alternative locations offer attractive lifestyles, stable property markets, and more favourable tax environments. Here’s where expatriates and investors should look in 2025.
Portugal: A Tax-Friendly Haven for Expats
Portugal remains a prime destination for expats and investors, particularly in the Algarve, which continues to offer an excellent quality of life, political stability, and a favourable investment climate. The country’s golden visa scheme, although modified, still provides options for investors, such as the cultural investment route. Alternatively, the D7 visa allows retirees and remote workers to gain residency by demonstrating sufficient passive income.
Why Buy in Portugal?
- Pleasant year-round climate with over 300 days of sunshine.
- Attractive tax benefits, including the Non-Habitual Resident (NHR) scheme.
- High rental demand in popular regions like the Algarve and Lisbon.
- A welcoming expatriate community and excellent healthcare system.
France: A European Classic with Hidden Gems
France remains a strong contender for those looking for an alternative to Spain. While Paris and the Côte d’Azur are well-known hotspots, lesser-explored regions such as the Dordogne, Brittany, and the Languedoc offer excellent value for money. France’s visa policies make it relatively easy for British buyers to obtain long-term residency, particularly under the VLS-TS visa.
Why Buy in France?
- A diverse landscape from coastal retreats to countryside estates.
- Strong legal protections for buyers and tenants.
- Good infrastructure, including high-speed rail and international airports.
- A world-renowned food and wine culture.
Greece: Golden Visas and Mediterranean Charm
Greece has long been a favourite for second-home buyers, and its golden visa scheme remains one of the most accessible in Europe. While investment thresholds have risen in popular areas like Athens and Mykonos, opportunities still exist in regions such as Crete and the Peloponnese. Rental demand remains strong, especially in tourist-heavy locations.
Why Buy in Greece?
- Affordable property prices compared to Western Europe.
- Tax incentives for foreign residents.
- A relaxed Mediterranean lifestyle with stunning island getaways.
- Increasing foreign investment improving infrastructure and services.
Montenegro: A Rising Star in the Property Market
Montenegro is quickly gaining a reputation as Europe’s new property investment hotspot. With stunning coastlines, modern marinas, and an increasing number of luxury developments, Montenegro offers a strong alternative to traditional Mediterranean destinations. Its low-tax regime and residency-by-investment options make it attractive to international buyers.
Why Buy in Montenegro?
- No stamp duty on new-build properties.
- Attractive residency permit options for investors.
- A rapidly developing tourism sector increasing property values.
- Some of Europe’s most scenic coastal and mountain landscapes.
Italy: The Timeless Appeal of La Dolce Vita
Italy continues to attract international buyers, particularly in regions like Tuscany, Puglia, and Sicily. While its bureaucracy can be complex, Italy’s flat tax regime for foreign residents is a significant draw, especially for retirees. The country offers a mix of historic homes, rural estates, and modern apartments in cosmopolitan cities.
Why Buy in Italy?
- Competitive property prices, especially in rural areas.
- Tax incentives for high-net-worth individuals.
- A diverse lifestyle offering from city living to countryside retreats.
- Strong cultural appeal and renowned cuisine.
Malta: A Mediterranean Hub with Tax Benefits
For those looking for an island destination, Malta provides a strong combination of economic stability, a robust legal system, and an attractive tax regime. With English as an official language, it’s particularly appealing to British buyers.
Why Buy in Malta?
- No annual property tax, council tax, or inheritance tax.
- Attractive residency programmes with tax benefits.
- A strong banking sector and favourable business environment.
- A well-connected international airport offering direct flights across Europe.
The UAE: Tax-Free Living and Luxury Investments
Dubai remains a top destination for international property buyers due to its tax-free income, luxury real estate options, and strong rental yields. With new visa initiatives, including the golden visa for property investors, it continues to be an attractive market for long-term residency and investment.
Why Buy in Dubai?
- No income tax, capital gains tax, or inheritance tax.
- High rental yields, particularly in prime locations.
- A rapidly growing economy with strong expat support networks.
- A well-developed infrastructure with world-class amenities.
Where To Buy Property Overseas In 2025
While Spain’s property market remains appealing, shifting regulations may make other destinations more attractive for non-EU buyers. Portugal, France, Greece, and Italy continue to provide excellent alternatives within Europe, while emerging hotspots such as Montenegro and Dubai offer unique investment opportunities. With careful planning and expert financial advice, expats and investors can find the perfect overseas property in 2025 without unnecessary hurdles.
This communication is for informational purposes only and is not intended to constitute, and should not be construed as, investment advice, investment recommendations or investment research. You should seek advice from a professional adviser before embarking on any financial planning activity. Whilst every effort has been made to ensure the information contained in this communication is correct, we are not responsible for any errors or omissions.