Are Middle-Class Families Leaving Labour-Run UK for Mediterranean Countries? Surge in 'Golden Visa' Applications in Greece and Portugal After Tax Increases

A notable increase in British citizens applying for 'golden visas' in southern Europe has been reported following Labour's general election win, according to data from Astons, a global investment immigration firm.

In Greece, applications from UK nationals for residency through investment rose by 46.6%, with 626 approvals in the year to April, up from 427 the previous year. Greece offers a five-year residency permit for property investments starting at €250,000. Similarly, Portugal saw a 66.2% increase in UK applications in 2024, with 389 applications compared to 234 the prior year.

Alena Lesina from Astons noted a "clear uptick" in interest from UK citizens, driven not only by high-net-worth individuals but also middle-class families, remote workers, and retirees. "It’s about quality of life, future planning, and mobility in an uncertain global climate," she told The Telegraph.

The trend coincides with Labour’s tax policies under Chancellor Rachel Reeves, including higher business taxes and VAT on private school fees, with further tax increases expected in the upcoming Budget. These measures follow Labour’s reversal on plans to cut winter fuel payments and other benefits, exacerbating public finance challenges.

The popularity of golden visas was already growing before Labour’s victory. For instance, Spain saw a 70% rise in UK applications in 2023 (3,601 compared to 2022), though it closed its scheme in April 2024.

Conservative MP Andrew Griffith, the shadow business secretary, criticised Labour’s policies, stating, "Labour’s punishing tax rises are driving young, ambitious people away, damaging the economy. Rachel Reeves’ ideological war on aspiration risks reducing tax revenues, worsening the fiscal deficit."

A Treasury spokesperson defended the government, saying, "Our tax system is fair and progressive, keeping the UK attractive. Our capital gains tax rate is the lowest in the G7, and we’ve kept our promise not to raise income tax, employee National Insurance, or VAT rates for working people."