Tourist Tax in Santana – Host Guidance (2026)

If you run a hotel, guesthouse, or local accommodation in Santana, it’s important to understand how the tourist tax works in 2026 and how to apply it correctly to stay compliant.

The Municipality of Santana has published detailed guidance explaining:

• How much tourist tax guests must pay

• Who is exempt

• How invoicing works

• VAT and IRS treatment

• Declaration rules

• Penalties for non-compliance

This guide summarises the municipality’s official FAQ in clear English for AL hosts and property managers.

Quick solution : use EazyAL software to simplify Tourist Tax

Tax Application Rules

As of 2026, Santana applies a tourist tax with the following structure:

• €2 per person, per night

• Applies to guests aged 13 and older

• Typically charged for a maximum of 7 consecutive nights

This means the maximum tax per guest per stay is €14.

Which Guests Must Be Charged?

As a host, you should apply the tax to:

• All non-resident guests aged 13+

• Visitors staying in:

  • Hotels

  • Guesthouses

  • Local accommodation (short-term rentals)

Exemptions You Must Consider

You should not charge the tax in cases such as:

• Guests under 13 years old

• Guests staying for medical reasons (with valid proof)

• Specific cases defined by municipal regulations (e.g., extended stays)

Always keep supporting documentation for exemptions for audit purposes.

Purpose of the Tax

The municipality of Santana uses the tourist tax revenue to:

• Maintain and improve public infrastructure

• Support local services and community projects

• Preserve natural and cultural heritage

• Enhance the overall visitor experience

Your Responsibilities as a Host

You are responsible for:

• Collecting the tax directly from guests

• Clearly informing guests before arrival

• Recording all transactions and exemptions

• Submitting the collected tax to the municipality as required

💡 You may:

• Include the tax in your booking price, or

• Charge it separately at check-in/check-out

What Happens If You Close Your AL?

If you stop operating your:

• AL licence

• Tourism business

• Accommodation activity

you must also request deactivation on the tourist tax platform.

The municipality requires this:

• Within 10 days

• Subject to municipal approval

Are There Fines for Non-Compliance?

Yes.

The municipality states there are penalties for:

• Failure to register

• Missing declarations

• Late payment

• Failure to update records

These are defined under article 13 of the municipal tourist tax regulation.

Is Tourist Tax Subject to VAT?

No.

The municipality confirms:

• Tourist tax itself is exempt from VAT

• The legal basis is article 2(2) of the Portuguese VAT Code (CIVA)

However:

• Collection commissions paid to accommodation providers ARE subject to VAT at the normal rate.

Best Practices for Hosts

To ensure smooth operations and avoid complaints:

• Add a clear note about the tax on booking platforms

• Automate the calculation in your reservation system

• Include the tax in invoices or receipts

• Prepare a short explanation for guests

Is This Common Across Madeira?

Yes — tourist taxes are now widely implemented across Madeira Island, including:

• Funchal

• Santa Cruz

• Machico

• São Vicente

💡 While the rate is generally €2 per night, reporting rules and exemptions may vary slightly by municipality.

Quick Reference Table

Final Host Tip

Being transparent and organized is key:

• Disclose the tax upfront

• Automate calculations where possible

• Keep detailed records

Proper handling of the tourist tax helps you stay compliant while contributing to sustainable tourism in Santana.