Tourist Tax now applied in 40 portuguese municipalities, with more to follow in 2025

Currently, 40 municipalities have adopted this measure, according to a survey conducted by Lusa. By the end of 2025, around 10 more municipalities are expected to introduce the tax, reflecting a growing trend.

Regions with active taxation

Madeira and the Azores have been at the forefront of implementing tourist taxes. In Madeira, the fixed rate is €2 per night, applicable for up to seven nights. Meanwhile, in the Azores, six municipalities on São Miguel Island – Ponta Delgada, Ribeira Grande, Lagoa, Vila Franca do Campo, Povoação, and Nordeste – have introduced a €2 per night tax, capped at three nights.

Lisbon, a pioneer in introducing the tax back in 2016, currently charges the highest rate in the country at €4 per night, with exemptions for children under 13 years old. Porto, following a similar model, has charged €2 per night since 2018. Cities like Almada and Nazaré are planning to implement their own tourist taxes soon.

Regional differences

The Alentejo remains the only region in Portugal without municipalities applying a tourist tax. However, Évora has already begun discussions and is preparing regulations to introduce one in the coming years.

In the Algarve, the tax is charged in seven out of the region’s 16 municipalities. During the high season (April to October), the rate reaches €2 per night, while in the low season (November to March), it is reduced to €1 per night. Faro applies a fixed rate of €1.50 per night, while Vila Real de Santo António, the region’s pioneer, charges €1 per night, with reduced rates for camping and caravan parks.

Additional charges

In addition to overnight stays, some cities, like Lisbon and Funchal, have introduced taxes for cruise ship passengers. Both cities charge €2 per person, applying similar criteria as those for hotel stays.

With 308 municipalities in Portugal, there is still room for further expansion. Municipalities such as Terras de Bouro, Matosinhos, and Baião are among those planning to start collecting the tax by 2025. These revenues are allocated to strengthening areas like culture, heritage, mobility, and the environment, helping to mitigate the impacts of tourism.

As more municipalities adopt this measure, the tourist tax is becoming a sustainable financing tool for Portuguese cities welcoming thousands of visitors each year.