Locations with the Most Hefty Tourist Taxes Imposed
Porto and Lisbon Implement Tourist Taxes to Fund City Development
Porto and Lisbon, two popular tourist destinations in Portugal, have introduced municipal tourist taxes to help fund the maintenance of local infrastructure and the preservation of cultural heritage.
In Porto, the tourist tax of €3.00 per night per person aged 13 and over was implemented in 2018. The tax applies year-round and is consistent regardless of the type of accommodation or season. Guests under 13, pilgrims, and people displaced by conflict are exempt from the tax. In 2024, the rate was increased from €2.00 to €3.00 per night to address increased tourism-related municipal expenses. This move led to a 42% rise in collected funds during the first four months of 2025 compared to the same period in 2024, accumulating to €9.3 million by April 2025.
Meanwhile, Lisbon has had a tourist tax in place for over a decade. The tax increased from one euro per night in 2016 to two euros in 2019, and then doubled to four euros in 2024. Like Porto, Lisbon also exempts children under 13 from the tax. In 2024, Lisbon also began charging a tourist tax of two euros per passenger over 13 disembarking from a cruise ship in transit.
The Secretary of State for Tourism, Commerce, and Services in Portugal, has advocated for the "rationalization" of the application of the tourist tax in Portugal. The current disparity and municipal management of the tourist tax in Portugal do not always guarantee "added value and advantages" for the sector, according to the Secretary.
The proceeds from the tourist taxes in both cities are earmarked primarily for local use, helping finance the maintenance of tourist infrastructure, preserving cultural heritage, and mitigating the environmental impact of tourism. The varied rates across Portuguese municipalities have sparked calls from government officials to "rationalize" the tourist tax application nationally to ensure it brings added value to the tourism sector uniformly.
Despite the calls for change, Portugal ranks 8th among the EU countries with the most expensive tourist accommodation prices, according to a study by real estate information company CoStar. This suggests that the current tourist tax rates may not be a significant burden for tourists, especially when compared to cities like Amsterdam, which has the highest tourist tax in Europe, at €18.45.
As Porto and Lisbon continue to attract tourists, the revenue generated from the tourist taxes will play a crucial role in the cities' development and sustainability.
- The increased funds collected from the tourist tax in Porto has allowed for significant investment in the upkeep of tourist infrastructure and cultural preservation.
- With the implementation of a more consistent tourist tax across municipalities in Portugal, the government seeks to ensure the tourism sector receives consistent "added value and advantages."
- While Portugal ranks 8th in the EU for expensive tourist accommodation prices, comparatively low tourist taxes, like those in Porto and Lisbon, may not significantly burden tourists when compared to cities with higher taxes, such as Amsterdam.
