Only 7 of 16 Algarve Municipalities Implement Tourist Tax: What You Need to Know

Tourist Tax in the Algarve

In the sunny Algarve, a prime destination for both locals and tourists, only seven out of 16 municipalities currently charge a tourist tax for overnight stays. According to a recent count by Lusa agency, as of January, 27 out of 278 municipalities on the mainland have implemented this tax, with an additional six considering its introduction this year.

Overview of Municipalities

Across Portugal, 40 municipalities have adopted the tourist tax, with nine more planning to start by 2025. Each municipality sets its own rates and regulations, but there are common exemptions, such as for children under 12 years and individuals with disabilities of 60% or more, as well as those receiving medical treatment.

The Alentejo Exception

Notably, the Alentejo region is the only area in the country without any municipality charging or planning to charge a tourist tax. However, Évora has initiated steps towards creating its own regulations, currently in the consultation phase.

Municipal Rates in the Algarve

In municipalities like Albufeira, Lagoa, Loulé, Portimão, Olhão, and Vila Real de Santo António, guests pay €2 during peak season (April to October) and €1 during off-peak (November to March). Loulé was the last to implement the tax in November, following local news coverage.

Faro, the district capital, charges €1.5 year-round, while Vila Real de Santo António charges €1, except in camping areas where the fee is €0.50.

Lisbon and Beyond

In Lisbon, the highest tax rate is €4 per night, established in September. Initially, the tax was €1, increasing to €2 in 2019 and doubling again recently. In 2024, Lisbon also started charging a €2 fee for cruise passengers.

Exemptions and Special Cases

Some municipalities, like Porto and Caminha, exempt tourists from the tax for religious pilgrimages. In Nazaré, a tax is being prepared, with implementation expected this year.

Tax in the Islands

The six municipalities on São Miguel Island have begun to apply a tourist tax. In the Madeira archipelago, seven out of eleven municipalities charge €2 per night. Meanwhile, in the Azores, only visitors from São Miguel are currently subject to a €2 tax per day for up to three nights.