Tourist Tax in the Algarve: Where do we stand?


In the Algarve, in 2019, a decision was made to introduce the tourist tax, a situation that was put on hold in most municipalities due to the pandemic. However, there is talk of the possibility of implementing this tax as early as next year.


What is this tax, and what is its purpose?

The tourist tax is a fee charged to all guests staying in tourist establishments or local accommodations in cities where the tax is in effect. Essentially, an additional amount is charged per night and per person, in addition to the room rate (in doutorfinancas.pt

The goal of this tax is to collect funds so that the municipality can invest in the infrastructure and services that support tourism. This comes in response to the significant growth in tourism, which involves increased wear and cost burdens for municipalities.


Which municipalities in the Algarve already charge the tourist tax? 

Currently, Vila Real de Santo António and Faro are the two locations that have implemented the tourist tax. The former has been doing so since 2019, maintaining it every month since then. Faro implemented the measure in March 2020, suspending it the following month due to the pandemic. In March 2022, the collection was resumed and applied until the end of October.

In terms of the amounts charged, the tourist tax in Vila Real de Santo António is set at €1 per day per tourist—except for camping and caravan parks, where the fee is €0.50. In the municipality of Faro, a fee of €1.5 per day per tourist is charged, with those under 12 years old being exempt.


What can tourists expect for the year 2023?

Starting next year, there is talk of implementing an annual tourist tax with a common value for the entire region. It is expected to be set at two euros per day, up to a maximum of seven euros—an amount to be added to the accommodation fee. This value is similar to what is currently charged in the city of Lisbon.


However, the decision will still be debated among various tourism entities and will be up to each municipality to implement the measure or not.



Sources: SIC Notíciasalgarveprimeiro


November 30, 2022

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