Tourist tax Portugal: Popular holiday hotspot Lagoa begins charging new per night tourist tax for everyone over age of 12

UK holidaymakers now face a new tourist tax when they visit a popular holiday destination. A new fee has been introduced in a popular part of Portugal that has to be paid all-year-round and applies to everyone over the age of 12.

The fee will have to be paid by holidaymakers in Lagoa, in the Algarve and the money generated by the Lagoa Municipal Tourist Tax measure will be used to “improve the tourism infrastructure at a local level”. The tourist tax in the municipality will cost €1 per night between November 1 and March 31.

In the high season, which runs from April 1 to October 31, it will cost €2 per night. A maximum of seven consecutive nights will be charged to all guests aged 13 or over.

The tax will apply to anyone staying in hotels, apartments, hostels, camping and caravan parks, plus other accommodation establishments. In a press release, the municipality said: “In a municipality where tourism plays a fundamental role in the economy and where growing tourist demand has led to increased pressure on equipment, municipal infrastructures, urban and natural space, this tax represents a new source of financing that, in a complementary logic, will allow improvements to be made to municipal public and private assets, the provision of public information and support services for tourists and cultural and recreational services in the city.”

There are exemptions to the tax, including those under the age of 12, guests with disabilities and foreign students who enter the University of Algarve who use tourist resorts and local accommodation establishments at the beginning of each academic year, up to a maximum of 60 consecutive days. Guests whose stay is motivated by treatment from a doctor, extending to a companion will also be exempt, along with those whose stay is the subject of a proven offer by a tourist enterprise or local accommodation establishment. The fee is collected and delivered to the Municipality of Lagoa by tourist establishments on an electronic platform created by the municipality. 

Lagoa has now become the fifth Algarve borough to charge a tourist tax. It follows Vila Real de Santo António, Faro, Olhão and, most recently, Portimão. Albufeira mayor José Carlos Rolo has also already revealed plans to start charging a tourist tax in May.