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Middle classes abandon UK and flee to Mediterranean after Rachel Reeves's tax grab -
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A growing number of middle-class families are packing up and leaving Britain behind, with many heading to the Mediterranean in search of better tax conditions and a higher quality of life. New figures show a sharp rise in the number of Britons applying for golden visa schemes in southern Europe, with Greece and Portugal proving particularly popular.
Golden visas offer residency and a potential path to EU citizenship for those who invest at least 250,000 euros in property. Until recently, they were mainly seen as a route for the ultra-wealthy, but that's changing fast. Investment firm Astons says it has seen "a clear uptick in interest from UK nationals exploring residency-by-investment programmes over the past year."
Women pulling wheeled suitcases to airport terminal© Getty
Alena Lesina, a citizenship and real estate investment expert for the firm, told The Telegraph: "While the broader economic and tax environment in the UK is certainly a driver, what's notable is the evolving profile of applicants.
"These schemes are no longer the preserve of ultra-high net worth individuals alone.
"We're increasingly advising middle class families, remote-working professionals, and even retirees who are re-evaluating their lifestyle priorities post-pandemic."
The Chancellor recently unveiled a £26billion hike in payroll taxes, a sharp 6.7% rise in the National Living Wage, and a raft of green levies - all designed to help plug a gaping hole in the public finances and bankroll Labour's £20billion infrastructure pledge.
The latest Greek government data reveals that 626 Britons were granted golden visas in the year to April, a jump of nearly 47% compared to the previous year.
In Portugal, 389 UK applications were made in 2024, up from 234 the year before, a 66% rise.
Spain also saw a surge in demand before closing its own scheme in April.
In 2023, it received 3,601 applications from Britons, nearly 70% more than in 2022.
The rise in emigration comes amid fears that Chancellor Rachel Reeves is preparing more tax hikes in her next budget to plug holes in the public finances.
She has already scrapped the non-dom tax status and tightened inheritance rules.
However, a Treasury spokesman said: "Our tax system is fair and progressive, and keeps the UK an attractive place to live.
"The UK's main capital gains tax rate is lower than any other G7 European country, and we are committed to keeping taxes for working people as low as possible.
Chancellor And Business Secretary Launch The Government's Industrial Strategy© Getty
"That's why, at last autumn's Budget, we protected working people's payslips and kept our promise to not raise the basic, higher or additional rates of income tax, employee National Insurance or VAT."
But critics say the tax burden is pushing people away.
Andrew Griffith, the shadow business secretary, said: "It pains me that the young, ambitious, optimistic people our country needs are leaving because they think they can have a better life outside the UK."
Figures also show that wealthier individuals are heading to the United Arab Emirates, drawn by its low tax and living costs.
According to a report from Henley & Partners, Britain is set to lose more millionaires this year than any other country, an estimated 16,500.
