Spain launches yet another tax raid on British tourists

The country has seen a string of anti-tourism protests in recent months. (Image: Getty)

The Spanish government is looking to introduce a steep levy on holiday lets in its bid to tackle the country's housing crisis. Overtourism protests have erupted across the Mediterranean nation in recent months, including in travel hotspots beloved by Britons like Barcelona, and the Balearic and Canary Islands.

Residents have blamed excessive levels of tourism for a spike in the cost of living, and believe housing costs have shot up due to properties being bought up by foreigners or rented out in the summer months, as per BBC News. Local authorities are taking action to ensure housing stock isn't dominated by foreign visitors, including in Malaga and Madrid, where they're capping new licenses for tourist rentals, while Barcelona is looking to ban them altogether by 2028, as per Reuters.

Now the governing Spanish Socialist Workers’ Party wants to slap a 21% VAT on stays of under 30 days, among other measures, The Telegraph reports.

The draft legislation proposes raising the rate from zero to more than more than twice the 10% VAT tourists pay for hotel rooms in a bid to discourage short terms lets.

It's under consideration in Parliament as part of a wider wider bill unveiled last month.

However, commentators believe it may struggle to pass given political divisions, and the limited power of PM Pedro Sanchez's minority government.

Included within it is also a proposed 100% tax on property bought by non-EU residents, as well as hiked taxes for second homes and vacant properties, as per the newspaper.

Spain protests: Activists continue demonstrations

Britons will particularly feel the impact of such measures, as they reliably top Spain's inbound tourism rankings.

According the to the National Institute of Statistics, Spain welcomed 25.6 million people in the first four months of the year, representing a 7.1% increase on the same period last year. Brits continued to be the largest cohort, with over 4.7 million arrivals over that period.

In recent days Mr Sanchez has also sought the support of regional leaders to triple the housing budget to 7 billion euros (around £5.8billion) in social housing over the next four years, amid a shortage in social housing.

It currently represents around 3% of all homes but to allieviate the shortfall, ministers will need to get it closer to the 8% European standard.