Many municipalities in Portugal are supporting the idea of charging visitors for their overnight stays, with an emphasis on the Algarve.

Although a few towns have already put these new measures into effect, most have not yet enforced the fee, indicating that the mutual implementation that was originally scheduled for April has been delayed.

All visitors staying in resorts, campgrounds, local lodgings, and RV parks are required by these restrictions to pay this tax.

Albufeira intends to follow suit, announcing plans to enact a tourism tax beginning in May, subject to regulatory clearance being granted by the city council. There were delays in this procedure since the proposal wasn’t reviewed until February.

The tourist tax was adopted by the Algarve Intermunicipal Community (AMAL) in 2019. Four years later, in 2023, 16 municipalities in the Faro area recognized the need for the measure, which resulted in the imposition of a €2 cost per overnight stay.

Along with Vila Real de Santo Antonio, Faro, and Olhao, Portimão has recently joined the list of municipalities that collect the tourist tax, effective March 14, 2024.

The tourist tax in Portimao is set at €1 per overnight stay in the low season (November to March) and €2 per night during the busy season (April to October).

In 2016, Vila Real de Santo Antonio implemented a system of tourist taxes, with a nightly fee of about €1. In February 2020, Olhao raised its price to €2 per night, and Faro followed suit with a €1.5 nightly fee in May 2023.

The money collected from the tourist tax will be used to fund tourism-related projects, with an emphasis on maintaining well-known tourist destinations, maintaining the environment, and preserving cultural heritage.

The tourism businesses are responsible for paying the fees to the relevant municipality. The penalty for non-compliance vary depending on the municipality and can be as high as €10,000 for individuals or as low as €1,000 for legal corporations.