Adult visitors from the Algarve area will be subject to the year-round tourist tax that the picturesque southern city of Faro has begun to impose.
For stays of up to seven consecutive days, visitors to Faro must pay a €1 tax every night spent in the city from November 1 and February 28. Tourists will pay €2 per night during the peak season (March to October), when this tax will be quadrupled.
This tax must be paid by all visitors over 16 who are lodging in hotels, local businesses, campgrounds, or caravan parks.
These Categories Are Excluded From Paying Faro’s Tourist Tax
More vulnerable categories will be excluded from paying the tourist tax, including some local residents, students, medical patients, those evacuated due to natural emergencies, and essential workers.
In detail, these categories are not required to pay a tourist tax while staying in Faro:
- Local and international students enrolled at the University of Algarve who stay in hotels and other establishments during the academic year.
- Visitors staying in Faro for medical treatment, including one accompanying person.
- Individuals staying in Faro due to evacuations from dangerous zones, which can be related to natural disasters, public health emergencies or civil protection orders.
- Faro residents.
- Individuals working in education, healthcare and security in Faro.
All of these categories are required to present evidence that proves their condition, for example, proof of student status, medical records, and occupation evidence.
Several Tourist Destination in Portugal Have Introduced Tourist Taxes so Far
Many municipalities, especially in the Algarve region, the country’s most popular destination for holidaymakers, have introduced tourist taxes. The incentives are local efforts to generate revenue and allocate the funds to improve the infrastructure and make these destinations more sustainable.
So far, it is estimated that in addition to Faro and the Algarve region, Albufeira has also implemented the tourist tax, which became effective in May 2024. The Vila Real de Santo Antonio, Faro, Olhao and Portimao have also agreed to impose the tourist tax in Portugal.
The revenues generated by tourist taxes are delivered to the municipality by tourist enterprises and then allocated to the popular tourist destinations to make the necessary investments, including environmental sustainability, culture preservation, and maintenance of these popular spots.
According to data from the National Statistics Institute (INE), 13.1 million tourists visited Portugal between January and August of 2024, making a 6.7 per cent increase in tourist arrivals.
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