Tourist Tax in the Algarve
Tourist tax in the Algarve? The municipalities of “Lagoa e Carvoeiro” and “Portimão” have now introduced this tax. This follows the example of Lisbon, Faro and Albufeira. The so-called Taxa Municipal Turística (TMT). This benefits the local municipalities and not the Portuguese State.
Here you will find the most important details about the tourist tax and how it may affect your stay in our apartments or villa
Who pays the tourist tax?
The tourist tax applies to:
- Adults (over 12 years old): €2 per night from 1 April to 31 October and €1 per night from 1 November to 31 March.
- Children (12 years and under): €1 per night from 1 April to 31 March.
- The tourist tax is per person and applies for a maximum of 7 consecutive nights per stay.
Application of the tourist tax
Rentals of the following properties are required to collect and pay the tourist tax:
- Hotel rooms
- B&Bs
- Private holiday rentals
- campsites and caravan parks
For landlords, the administration, collection and payment of the tourist tax is an additional obligation, in addition to the income tax levied by the Portuguese State.
How is the tax calculated and paid?
We use the following procedure:
- Booking more than 8 weeks before the reservation date? The tax is stated separately in part II of the rental price.
- Booking less than 8 weeks before the reservation date? The tourist tax is included in the total rental price.
The tax is stated separately in the booking confirmation. This makes it transparent for tenants what the total costs are.
Why tourist tax?
The municipalities use the proceeds from the tourist tax to:
- Improve local infrastructure and tourist facilities.
- Manage and make the impact of tourism on the region more sustainable.
The tourist tax in the Algarve is a small contribution that helps to keep the region attractive and well-maintained for future visitors. Refund of paid tourist tax is not possible.
Algarve Tourist taxes
Out of the 308 municipalities in Portugal, only 40 impose tourist tax, including Lisbon and Porto, as well as seven popular municipalities in the Algarve. Lisbon charges €4 per night and has earned nearly €36 million by 2024, including tax from cruise ship passengers. Although the passengers stay on the ship, they still have to pay the tourist tax. An overnight stay in Lisbon has the highest tourist tax, while Porto charges €3 per person per night.
In the Algarve, the tax is not higher than €2 per night in 2025. Lagoa-Carvoeiro-Ferragudo and Albufeira have introduced tourist tax, with a rate of €2 per night during the peak season and €1 per person outside the season, for a maximum of seven consecutive nights. With 10% of the 20 million tourist overnight stays in Portugal occurring in Albufeira, this amounts to a revenue of over €2 million. By comparison, Amsterdam receives around €250 million in tourist tax annually.
