Home Travel & Adventure Portuguese Municipalities Expand Tourist Taxes to Boost Revenue Streams

Portuguese Municipalities Expand Tourist Taxes to Boost Revenue Streams


Several municipalities in Portugal will join the initiative to charge tourists for overnight stays in the area, especially concerning the Algarve region.

The new measures have already been implemented in some municipalities, but the majority have yet to impose the fee, indicating that there will be a delay in mutual implementation, as it was initially planned for April, SchengenVisaInfo reports.

All tourists staying in resorts, campsites, local accommodations and caravan parks, known as RVs, are required to pay this fee.

Albufeira to Join the Trend: Tourist Tax Expansion Planned for May

This Portuguese city is scheduled to join the group of municipalities that impose a fee on tourists starting in May after the Council completes the process of approving the regulation for implementing the tax in the city. The proposal to go on with the measure was under review until February, which led to a more delayed process.

The expectation is to start charging the tourist tax in May. 

Mayor of Albufeira, José Carlos Rolo

The Algarve Intermunicipal Community (AMAL) gave the green light to the tourist tax introduction back in 2019, and four years later, in 2023, 16 municipalities in the Faro district agreed that such a measure was necessary. This led to the €2 fee per overnight stay.

Portimão Leads the Charge: Overnight Stay Levy Implemented

Together with Vila Real de Santo Antonio, Faro and Olhao, Portimao has become the latest municipality to join the tourist tax collection as of March 14, 2024.

The tourist rax regulation in Portimao costs €2 per night during the high season, which lasts from April to the end of October, and €1 per overnight stay in the low season, including November 1 to the end of March.

Vila Real de Santo Antonio charged the tourist tax first out of all, with the process being implemented in 2016 and charging around €1 per night.

Faro, followed by a €1.5 per night charge in February 2020, while in May 2023, the fee to Olhao would be raised to €2 per night.

Tax Revenue Allocated for Sustainable Development

The way the system of collecting the fee works is that tourist enterprises deliver it to the municipality. Under municipal regulations, the enterprises can range between €500 and €10,000 for natural persons and between €1,000 and €20,000 for legal entities.

The revenue generated from the tourist tax will be allocated for investments related to tourism, including environmental sustainability, culture preservation and maintaining popular spots.

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