Middle-class families are increasingly seeking to leave Britain for southern Europe, as concerns grow over Labour’s tax agenda under Chancellor Rachel Reeves. New data shows a surge in UK applications for so-called golden visa schemes in countries like Greece and Portugal, offering residency in exchange for property investment.
The trend has accelerated since Labour’s election victory last summer, driven in part by fears of further tax hikes in the autumn as the government grapples with a £40 billion budget shortfall.
Greece has seen a near 50% rise in golden visa applications from UK nationals since last summer. In the 12 months to April, 626 British applicants were granted five-year residency permits under the scheme up from 427 the year before, according to data from the Greek government analysed by global immigration firm Astons.
Portugal has reported a similar spike. UK applications to its golden visa scheme jumped 66% last year to 389, up from 234 in 2023. Both countries offer permanent residency and a route to EU citizenship for property investments as low as €250,000.
Alena Lesina of Astons said demand has shifted beyond the super-rich.
“We’ve seen a clear uptick in interest from UK nationals, especially middle-class families, digital professionals, and retirees,” she said. “While high UK taxes are a factor, it’s also about quality of life and long-term planning in an uncertain world.”
Spain, whose golden visa scheme closed in April—also saw a sharp rise in UK interest before its closure, with 3,601 applications in 2023, a 70% increase in the previous year.
Outside Europe, the United Arab Emirates has seen a notable increase in British arrivals. Its tax-friendly environment and lower living costs have made it an appealing option amid the UK’s rising tax burden, a trend that began under the Conservatives and has continued under Labour.
Andrew Griffith, Shadow Business Secretary, criticised Labour’s approach.
“It’s tragic to see the UK’s young, ambitious talent looking abroad for a better future,” he said. “Labour’s tax raids are not only harming families—they risk shrinking the tax base and deepening the UK’s fiscal crisis.”
Last autumn, Rachel Reeves abolished the non-dom tax status and tightened inheritance tax reliefs in a bid to raise revenue. But facing mounting pressure, the Treasury is now reportedly exploring ways to soften some of these measures after signs of capital flight among high earners.
A Treasury spokesperson defended the government’s approach:
“Our tax system is fair, progressive, and keeps the UK attractive. Our capital gains tax is the lowest among G7 nations, and we’ve protected workers by freezing income tax and national insurance rates.
A recent report by Henley & Partners projected that the UK will lose more millionaires in 2025 than any other country, with an estimated 16,500 expected to leave—marking the largest such outflow in a decade.
In response, both Reform UK and the Conservative Party have proposed new incentives aimed at reversing the trend. Reform UK has floated a £250,000 “Britannia Card,” offering a 10-year residency permit with exemptions from UK tax on foreign income. Meanwhile, the Tories are reportedly drafting plans for a golden visa scheme that would shield foreign wealth from Labour’s inheritance tax rules.
As Labour braces for further backlash this autumn, pressure is mounting on Reeves to balance fiscal responsibility with policies that retain both capital and confidence at home.
