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British tourists may have to pay a new in Spain after its latest . The Spanish government is seeking parliamentary approval for a 21% tax on short-term holiday lets as it attempts to tackle a housing crisis.

At present, there is no tax on holiday home rentals under 30 days, although new plans will see the tax double that of hotel rooms, which is currently set at 10%. This could impact a huge number of tourists, as last year around a third of the 94 million annual visitors to Spain opted to rent a home over a hotel room.

Housing Minister Isabel Rodriguez said on Friday: "Homes are for living in... the measures seek to guarantee the right to rental housing for families."

A Bank of Spain report this week said the country has a deficit of 450,000 homes. It revealed that half the housing stock in the Canary and is either tourist accommodation or homes owned by non-residents.

This situation has left locals struggling to find affordable housing as landlords opt for more lucrative holiday rentals.

The country's prime minister, Pedro Sánchez, said in January that non-EU residents bought 27,000 properties in the country in 2023.

"The sole objective is to put an end to these activities and leave (tourism) in the hands of hoteliers," said Javier Peñate, legal advisor to a holiday homeowners association in the Canary Islands.

if it saves the Spanish island of Tenerife becoming as busy as Cornwall.

However, Apartur, an association of tourism apartment owners in Barcelona, called the 21% VAT discriminatory and argued that shorter-term rentals should pay the same VAT as hotels.

The bill also includes a controversial measure first announced in January to tax non-European Union citizens up to 100% on second-home property purchases.