The increasing popularity of properties in tax havens is good news for anyone seeking a French property or Spanish property, it has been claimed.

Increasing numbers of wealthy tax exiles are pushing up prices in tax havens such as Gibraltar and the Isle of Man, resulting in lower prices for French property and Spanish property in established luxury holiday areas, according to the Guardian.

Howard Bilton, chairman of the Sovereign Group, told the newspaper: "Property prices in the south of France and southern Spain are languishing in the worst slump they’ve seen in many years.

"We believe, and all our local sources are telling us, that […] [this] is because of interest from a new breed of British tax refugee."

A survey by the company showed that French property in the popular Provence area has dropped in price, while the cost of Spanish property in holiday favourite Costa del Sol has also decreased.

A recent study by NatWest found French property is still among the top five most desirable relocation choices for expatriate Brits.

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