Tourist Tax in Portugal: Complete Guide for Local Accommodation Hosts (2026)

If you operate a Local Accommodation (AL) property in Portugal, there is one obligation that continues to expand from municipality to municipality and that many hosts still manage informally: the municipal tourist tax. In 2026, more than 40 Portuguese municipalities already charge this tax—and the number continues to grow.

This guide explains what the tourist tax is, who must collect it, how it is calculated, the rates charged by different municipalities, and what happens if you fail to comply.

What Is the Municipal Tourist Tax?

The municipal tourist tax is a fee charged to guests who stay overnight in tourist accommodation within certain municipalities. It is not a tax on the property owner—it is a fee paid by the guest, but collected and remitted to the municipality by the accommodation operator.

This means the responsibility falls on you. As the host, you must calculate the correct amount, collect it from the guest at the appropriate time, and submit it to the municipality within the deadlines established by local regulations.

The tax applies to all forms of tourist accommodation, including hotels, tourist apartments, rural tourism properties, hostels, and Local Accommodation units, including reservations made through Airbnb or Booking.com.

Who Is Exempt?

Exemptions vary slightly between municipalities, but the most common include:

Children

Most municipalities exempt guests up to 12 or 13 years old, depending on local regulations.

Local Residents

Some municipalities, particularly in Madeira, exempt residents of the region.

Guests With Disabilities

Guests with a certified disability rating of 60% or higher are generally exempt.

Medical Stays

In some municipalities, stays related to medical treatment are exempt, provided supporting documentation is presented.

Whenever a guest claims an exemption, you should request proof and keep it in your records.

Tourist Tax Rates by Municipality in 2026

Rates vary significantly from one municipality to another — from €1 per night in parts of the Algarve to €4 per night in Lisbon. Here is a quick overview of the main destinations, followed by the details for each.

Lisbon — €4 per night

Lisbon charges €4 per person per night, capped at 7 nights, for guests aged 13 and over. This is currently the highest tourist tax in Portugal. The maximum charge per guest per stay is €28.

Porto — €3 per night

Porto charges €3 per person per night, capped at 7 nights, for guests over 13. The rate increased from €2 to €3 in December 2024 — if your pricing or guest messaging still mentions €2, update it.

The Algarve — €1 to €2 per night, often seasonal

The Algarve is the most fragmented region: each municipality sets its own rate, and several use seasonal pricing.

Albufeira, Lagoa, Portimão, Olhão, and Vila Real de Santo António charge €2 per night in high season and €1 per night in low season. Faro keeps it simple at €1.50 per night year-round. Loulé charges €2 per night.

If you host in the Algarve, confirm the exact high/low season dates with your municipality — they are defined in each local regulation and do not always align.

Madeira — €2 per night across the island

Madeira's municipalities have converged on a common structure: €2 per person per night, capped at 7 nights, with guests under 13 exempt.

Funchal charges €2 per night. Residents of the Autonomous Region of Madeira and guests with a certified disability of 60% or higher are also exempt. Note: Funchal began reviewing its tourist tax regulation in January 2026, so a rate increase is possible — check before each season.

Santa Cruz, Machico, and Santana all follow the same €2 model with the standard regional exemptions.

How Is the Tourist Tax Calculated?

Nearly every municipality uses the same formula:

Tourist Tax = Eligible Guests × Nightly Rate × Nights (capped, usually at 7)

"Eligible guests" means guests who are not exempt — so a family of two adults and two young children only pays for the two adults.

Example 1 — Short stay in Funchal 2 adults, 4 nights: 2 × €2 × 4 = €16

Example 2 — Long stay in Lisbon 3 adults, 10 nights: only the first 7 nights are taxable, so 3 × €4 × 7 = €84

Example 3 — Family stay in Porto 2 adults and 2 children under 13, 5 nights: children are exempt, so 2 × €3 × 5 = €30

The night cap is per stay, per guest: even a 30-night booking stops accruing tax after the seventh night in almost every municipality with a capped system. Try our Tourist Tax Calculator.

Quick Links : Where to pay Portugal Tourist Tax (2025–2026)

When and How Do You Submit the Tourist Tax?

This is where many hosts make mistakes—not because they fail to collect the tax, but because they do not submit it correctly.

Each municipality has its own declaration and payment system. Most provide a dedicated online portal.

Examples include:

• Funchal: taxaturistica.funchal.pt

• Porto: taxaturistica.cm-porto.pt

• National platform used by several municipalities: taxaturismo.pt

Submission is typically monthly, meaning you declare and pay the total amount collected during the previous month.

Some municipalities allow quarterly reporting for operators with a lower booking volume.

Always keep records of:

• Number of guests

• Stay dates

• Amount collected

• Any exemptions and supporting documentation

In the event of an inspection, these records are your primary evidence of compliance.

Does Airbnb Collect Tourist Tax Automatically?

Yes and no—it depends on your setup.

Airbnb allows hosts to add tourist tax as a separate charge, but it does not automatically calculate the correct amount for every Portuguese municipality.

The host remains responsible for configuring the correct rate per guest and per night.

Some property management tools can automate this calculation based on the municipality where the property is located, generating the correct amount for each reservation without manual intervention.

What Happens If You Do Not Collect or Submit the Tax?

Failing to collect tourist tax from guests or failing to submit it to the municipality is considered an administrative offence.

Potential consequences include:

• Financial penalties

• Administrative fines

• Compliance issues with your municipality

• Potential complications relating to the maintenance or renewal of your Local Accommodation registration

Beyond the direct financial risk, a history of non-compliance may negatively affect your relationship with the municipality responsible for overseeing your AL registration.

Tourist Tax as Part of Local Accommodation Compliance

The municipal tourist tax is only one of several administrative obligations for Local Accommodation operators in Portugal.

The full compliance picture typically includes:

• Maintaining an active RNAL registration and annually submitting proof of civil liability insurance through gov.pt

• Reporting foreign guests through SIBA / AIMA within 3 business days of check-in

• Submitting monthly occupancy statistics to INE (IPHH)

• Issuing electronic invoices or receipts for every reservation through the Portuguese Tax Authority portal

• Filing annual Category B income tax declarations and registering for VAT if annual turnover exceeds €15,000

Managing all these requirements manually, reservation by reservation, quickly becomes time-consuming—especially for hosts with multiple properties.

Simplifying Tourist Tax Management

EazyAL was created by a host in Madeira specifically to solve this problem.

The platform helps Local Accommodation operators:

• Automatically calculate tourist tax per reservation

• Organize guest information for SIBA compliance

• Manage monthly reporting obligations

• Keep all compliance-related information in one place

Learn more at eazyal.com

Summary: What You Need to Know

The municipal tourist tax is simple in theory but requires discipline in practice.

Rates vary by municipality—from €1.50 in parts of the Algarve to €4 in Lisbon—and generally apply only to the first 7 nights of an eligible guest's stay.

The responsibility for collecting and remitting the tax belongs to the accommodation operator, not the booking platform.

The sooner you establish a clear process for calculating, collecting, and submitting tourist tax, the less time you will spend worrying about compliance—and the more time you can dedicate to providing an excellent guest experience.

Related Guides

• Taxa Turística em Faro e no Algarve

• Uma Grande Mudança Está a Chegar ao Sistema de Taxa Turística do Porto

• Taxa Turística em Câmara de Lobos (Madeira)

• Taxa Turística no Funchal

• Taxa Turística em Santa Cruz (Madeira)

• Taxa Turística Ponto do Sol

• Peniche Taxa Turística

• Santana Taxa Turística

• Sao Vincente Taxa Turistica

• Calheta Taxa Turistica

• Sintra

Frequently Asked Questions (FAQ)

Does every property in Portugal have to charge the tourist tax?

No. Only properties located in municipalities that have adopted the tax are required to charge it. Currently, around 40 of Portugal's 308 municipalities apply it. Check with your local council if you are unsure whether your area is covered.

If Airbnb collects the tourist tax automatically, do I still need to do anything?

In cities where Airbnb has a tax collection agreement (such as Lisbon), Airbnb will collect and remit the tax for bookings made through their platform. However, you remain responsible for collecting and remitting the tax for any direct bookings or bookings from platforms that do not have this arrangement. Always verify the terms with your municipality.

Is the tourist tax included in the accommodation price or charged separately?

The tourist tax must be charged separately from the accommodation fee. It should be clearly identified in your listing and in any receipts or invoices you issue to guests.

What happens if a guest refuses to pay the tourist tax?

The guest is legally obliged to pay it, as it is a municipal levy. However, as the property owner, you are responsible for remitting the correct amount to the municipality regardless. Consider making the obligation clear in your house rules and booking confirmation to avoid disputes.

Do short-term rental management companies handle the tourist tax on my behalf?

Many property management companies operating in Portugal will handle tourist tax collection, declaration, and remittance as part of their service. If you work with a management company, confirm in writing that this is included in your contract and that they are registered with the relevant municipality.

Does every AL property in Portugal have to charge tourist tax?

No. Tourist tax only applies in municipalities that have approved a municipal tourist tax regulation. If your property is in a municipality without tourist tax, you do not need to charge it. Always check your local council’s current rules before each season.

Who is responsible for collecting tourist tax from guests?

The accommodation operator is responsible. Even though the tourist tax is paid by the guest, the host or property manager must calculate it, collect it, declare it, and pay it to the municipality within the required deadline.

Does Airbnb automatically collect tourist tax in Portugal?

Sometimes, but not everywhere. Airbnb may collect tourist tax automatically in certain municipalities where it has an agreement or where the host has configured the tax correctly. However, this does not cover every municipality, every booking platform, or direct reservations. Hosts should always verify what has actually been collected.

Does Booking.com collect tourist tax automatically?

Booking.com may allow tourist tax to be shown or charged, depending on your setup, but you should not assume it handles the full legal process for you. In most cases, the host remains responsible for confirming the amount, collecting it if needed, and submitting the declaration to the municipality.

Do I need to charge tourist tax on direct bookings?

Yes, if your municipality applies tourist tax. Direct bookings are usually the host’s full responsibility, because there is no platform automatically calculating, collecting, or displaying the tax for you.

Is tourist tax included in the nightly price?

Usually, tourist tax should be treated separately from the accommodation price. It should be clearly communicated to the guest and recorded properly, especially where the municipality requires separate declaration and payment.

Do children pay tourist tax in Portugal?

It depends on the municipality. Many municipalities exempt children under 13, but the age limit can vary. Some municipalities may use different age rules, so hosts should check the specific local regulation.

Are long stays taxed for every night?

Usually not. Many municipalities apply a night cap, often 7 nights per guest per stay. For example, if a guest stays 14 nights in a municipality with a 7-night cap, only the first 7 nights are taxable. Always confirm the local cap, because it can vary.

Do I need to charge tourist tax if the booking is cancelled?

Usually no, because tourist tax is based on actual overnight stays. If the guest does not stay, there are normally no taxable nights. If the booking is partially used or changed, calculate the tax based on the actual eligible nights stayed.

Do I need to declare tourist tax if I had no bookings?

This depends on the municipality. Some portals may require a zero declaration even when there were no stays, while others may not. Do not assume that “no bookings” means “nothing to submit” until you check the local portal rules.

How often do I need to submit tourist tax?

Most municipalities require monthly declarations, but some may allow or require different reporting periods. Always check the municipality’s own portal or regulation for the exact deadline.

What records should I keep for tourist tax?

Keep a clear record of guest names, stay dates, number of guests, number of taxable nights, exemptions, amount charged, amount declared, and payment confirmation. If a guest claims an exemption, keep supporting documentation where appropriate.

Do I need to issue an invoice for tourist tax?

Tourist tax should be recorded correctly and kept separate from the accommodation price where required. The invoicing treatment can depend on your accounting setup and municipality, so confirm with your accountant how to show tourist tax on invoices or receipts.

Is tourist tax subject to IVA/VAT?

Tourist tax is generally a municipal charge collected on behalf of the municipality, not normal accommodation revenue. However, hosts should confirm the correct accounting treatment with their accountant, especially if using invoicing software or charging it through a booking platform.

What if Airbnb collects tourist tax but I also collect it manually?

You should avoid double-charging the guest. Check whether the platform already collected the tax for that booking. If it did, keep proof and make sure your municipal declaration reflects the correct amount and booking source.

Can I collect tourist tax through a payment link?

For bookings where the platform does not collect the tax, some hosts use payment links, bank transfer, Revolut, MB Way, or cash on arrival. The important point is that the guest is informed clearly, the amount is calculated correctly, and the host keeps proper records.

Is tourist tax the same across Portugal?

No. Tourist tax is municipal, so each municipality can set its own rate, exemptions, night cap, reporting portal, and deadlines. Lisbon, Porto, Algarve municipalities, Madeira municipalities, and other cities can all have different rules.

What is the biggest mistake hosts make with tourist tax?

The biggest mistake is assuming the booking platform handles everything. Airbnb or Booking.com may help with reservations and sometimes collection, but the host remains responsible for understanding the local rule, checking the amount, keeping records, and submitting declarations where required.

How can EazyAL help with tourist tax?

EazyAL helps AL hosts organize guest and reservation data, calculate tourist tax based on stay details, reduce manual spreadsheet work, and keep compliance information in one place. This is especially useful for hosts managing several properties or operating in municipalities with different tourist tax rules.