What Portugal’s Tourist Tax Means for Holiday Rentals in the Algarve
A tourist tax is a small fee charged per night of stay in certain destinations, aimed at supporting local infrastructure and tourism development. Many cities across Europe have implemented tourist taxes to manage visitor impact and generate revenue.
In Portugal, several municipalities have introduced this charge, including popular destinations in the Algarve. However, Lagos has yet to adopt a tourist tax, making it a more budget-friendly option for travellers.
Tourist Tax in the Algarve
While Lagos remains exempt, several other towns in the Algarve have implemented a tourist tax. Albufeira, Faro and Portimão charge visitors a small fee per night, usually around €2 per night during the high season, charged per person. These taxes are typically applied to the first seven nights of a stay and are often waived for children under a certain age. The taxes are collected by the accommodation provider, whether a hotel or rental property and the revenue from these fees is used to improve local infrastructure, maintain public spaces and support tourism-related projects.
Lagos and the Tourist Tax
Unlike these neighbouring destinations, Lagos does not currently impose a tourist tax. This decision is likely influenced by economic considerations, as the city aims to remain competitive and attract visitors who might otherwise choose taxed locations. Additionally, local authorities may prefer alternative funding sources for tourism development rather than introducing a direct fee on travellers. As a result, visitors can enjoy accommodation without the extra cost added to their stay. Similar to Lagos, properties in the Vila do Bispo municipality (including Salema and Parque da Floresta) are not subject to this tax.
For tourists planning a longer visit or travelling on a budget, this can make a noticeable difference in overall expenses. As holiday costs rise, Lagos remains an appealing destination for those looking to make the most of their money.
Why This is an Advantage
1. More affordable stays – Tourists save on accommodation, allowing them to spend more on dining, activities and experiences.
2. Longer visits – Without an additional nightly charge, travellers may extend their stays, benefiting both visitors and local businesses.
3. Appealing to budget-conscious tourists – Families, backpackers and long-term travellers looking to maximise their budget may prefer Lagos over taxed destinations.
Conclusion
The absence of a tourist tax in Lagos is a key advantage for visitors seeking a cost-effective holiday in the Algarve. While neighbouring towns apply fees to overnight stays, Lagos continues to offer an attractive alternative without added costs.
However, policies can change, so holidaymakers and renters should stay informed about any updates regarding tourist taxes in the region. For now, Lagos remains one of the best places in the Algarve for an affordable getaway.
Looking for a stay? Resort Rentals Algarve offers a range of holiday rentals in the Algarve, along with top holiday extras to enhance your trip.
