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Writer's picturePablo Azevedo

ACCOMMODATION TAX IN THE ALGARVE

Albufeira, Portimão, and Lagoa will impose an accommodation tax for overnight visits in 2024, following the lead of other Algarve towns like Faro, Olhão, and Vila Real de Santo.

António, where this action is now implemented.



The Accommodation Tax is applied in several municipalities across the nation and entails charging visitors who are not residents a fee. The total number of nights spent in local and tourist lodging facilities determines the cost.


Regardless of the way of booking (in-person or digital), the tax is applicable for a maximum of 7 (seven) nights of consecutive paid stays at tourist lodgings, local lodging facilities, campsites, and caravan parks. Each local council has established regulations for the establishment of the Accommodation Tax. Municipalities vary in their tax amounts, collection methods, and applicable exemptions, as specified by the General Regime of Local Authority Taxes and other relevant laws.


The municipalities of Albufeira, Lagoa, Portimão, and Olhão, a fee of €2,00 is charged during the high season (from 1 st April to 31 st October) and €1,00 during the low season (1 st November to 31 st March). The municipality of Faro charges €1,50 per overnight stay throughout the year, while Vila Real de Santo António charges €1,00, except in campsites, caravan parks, and motorhome service areas, where the fee is €0,50.


Exemptions to the accommodation tax include guests whose stay is for medical treatments and, in some cases, national and foreign students attending the University of Algarve. In most of these municipalities, children under 13 are exempt. In Olhão, the exemption applies up to 16 years old, and in Vila Real de Santo António, up to 10 years old, with a 50% reduction for children aged 11 to 13.


The submission of the declaration concerning the Accommodation Tax received is carried out by tourist establishments or local lodging units via e-mail, or an electronic platform, depending on the municipality. The Accommodation Tax is not subject to VAT.


The accommodation tax generates a revenue for the Municipalities in Portugal, which is used to improve municipal infrastructure and promote tourism.


For more information, visit the TPA Advogados website below👇

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