Revenue from tourist taxes boosts local authorities, yielding significant historical assets in the initial six months
A new report by Dinheiro Vivo has revealed that Portugal's major cities are seeing a significant increase in tourist tax revenue. In the first semester of the year, local authorities collected a record-breaking 65 million euros from the tourist tax, marking a 100 million euros increase compared to the same period last year.
The tourist tax is applied to those who stay overnight in hotels, local accommodations, inns, or tourist apartments. The tax rate varies between one and four euros per night, with Lisbon charging €4.00 per night per person (aged 13 and older) with a cap after seven nights (€28 maximum), and Porto charging €3.00 per night per person (aged 12 and older) with a cap after seven nights (€21 maximum).
Porto's tourist tax revenue increased notably due to a recent rate hike, making it one of Europe's costliest municipal tourist taxes by 2025 standards. As of early 2025, at least 43 municipalities in Portugal charge the tourist tax, with Lisbon and Porto being the largest contributors.
Lisbon, as the capital and largest city, represents 60% of the total tourist tax revenue in the first semester. The city collected 38.3 million euros from the tourist tax in the first semester, while Porto collected 12 million euros. Notably, Faro, Portimão, and Santa Cruz reached the one million euros threshold from the tourist tax for the first time. No other municipalities are specified as reaching the one million euros threshold for the first time.
The tourist tax revenue supports maintenance of cultural sites, infrastructure, and environmental mitigation in popular destinations. The increase in tourist tax revenue may indicate an increase in tourism activity, as more people choose to visit Portugal's key cities. However, exact revenue figures for Lisbon for the entire year are not yet available.
In summary:
| Municipality | Tax Rate (per night, per person) | Max Nights Charged | Approximate 2025 Revenue | Notable Trends | |--------------|---------------------------------|-------------------|--------------------------|------------------------------| | Lisbon | €4.00 (13+ years) | 7 nights (€28 max) | Not explicitly stated | Higher rate, rising revenues likely with expanding tourism | | Porto | €3.00 (12+ years) | 7 nights (€21 max) | €12 million (as of April 2025) | Increased tax rate from €2 to €3, resulting in revenue growth |
These figures illustrate growing municipal income from tourism taxes in Portugal’s key cities, reflecting the increasing use of this tool to finance tourism infrastructure and address over-tourism impacts. More detailed data on the tourist tax revenue for the entire year is expected to be released in the coming months.
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