Tourist Taxes Spread Across Portugal: São Miguel Collects Over 3 Million Euros in First Quarter

The six municipalities of São Miguel in the Azores have collected over three million euros from their tourist tax since it came into force in January 2025, according to figures released by SIC Notícias. The levy — two euros per night, capped at three nights — applies to all guests staying in hotels and local accommodation (Alojamento Local), with Azores residents exempt.

The result comfortably exceeds initial projections. When the Associação de Municípios de São Miguel announced the tax in late 2024, its president Alexandre Gaudêncio estimated the six councils could collect around 10 million euros in the first full year. The three-million mark reached by early 2026 suggests that target is on track.

A National Trend That Is Accelerating

São Miguel is part of a broader wave. According to Observador, at least 40 Portuguese municipalities were charging a tourist tax by the start of 2025, up from just a handful five years earlier. Lisbon was the pioneer, introducing its two-euro nightly levy in 2016. Porto followed in 2018. Since then, the list has expanded to include major tourist destinations from Cascais to Sintra, the Algarve coast, and now the Azores.

The amounts vary. Lisbon charges two euros per night (capped at seven nights). Porto charges two euros (capped at seven). Cascais set its rate at one euro. Most municipalities that have adopted a tax follow the two-euro-per-night model, with caps ranging from three to seven consecutive nights.

For a couple on a week-long holiday in Lisbon, the tourist tax adds 28 euros to the bill. In São Miguel, the same couple would pay 12 euros (capped at three nights each). The sums are modest individually, but they add up: Lisbon alone collected over 40 million euros in tourist tax revenue in 2024, funding infrastructure projects and cultural events across the city.

Why Municipalities Are Rushing to Adopt

The incentive is straightforward. Portugal received a record 32.5 million visitors in 2025, generating 29.1 billion euros in tourism revenue. For municipal governments facing tight budgets, a low-friction levy on visitors is an attractive revenue source that does not burden residents.

The money is typically ringfenced for tourism-related spending: maintaining public spaces, upgrading heritage sites, improving public transport in tourist areas, and funding cultural programming. In São Miguel, where volcanic hot springs, whale watching, and hiking trails drive the tourism economy, the revenue is earmarked for environmental conservation and infrastructure upgrades.

There is also a political dimension. As housing protests have spread and residents in tourist-heavy areas express frustration with overcrowding, tourist taxes offer local politicians a way to demonstrate that visitors contribute to the communities they visit, not just extract from them.

The Expat and Long-Stay Angle

Tourist taxes generally apply only to short stays — guests in hotels, hostels, and Alojamento Local (short-term rental) properties. Long-term rental tenants and homeowners are not charged. However, expats who host visiting family and friends in Alojamento Local properties, or who operate short-term rentals themselves, should factor these costs into their calculations.

For digital nomads and remote workers who move between cities and frequently stay in short-term accommodation, the cumulative cost can be noticeable. A nomad spending four months across Lisbon, Porto, and the Azores could easily pay 100 to 200 euros in tourist taxes over a year.

Property owners running Alojamento Local businesses must collect the tax from guests and remit it to the municipality. Failure to do so can result in fines, though enforcement has been inconsistent outside Lisbon and Porto.

What Comes Next

The trend shows no sign of slowing. Several Algarve municipalities that have not yet adopted a tourist tax are expected to do so before the 2026 summer season. Madeira — which saw Funchal tighten short-term rental regulations earlier this year — is also considering a municipal levy.

At the national level, there have been periodic calls for a standardised national tourist tax rather than the current patchwork of municipal rates. The government has so far resisted, preferring to leave the decision to individual councils. But as the number of participating municipalities grows, pressure for harmonisation may increase.

For travellers planning a trip to Portugal in 2026, the practical advice is simple: check whether your destination charges a tourist tax, factor it into your accommodation budget, and keep receipts. The amounts are small, but in a country that now charges visitors in more municipalities than almost anywhere else in southern Europe, they are increasingly hard to avoid.

Background: See our 2026 visitor guide to Fátima and the Caminho pilgrim routes. (Background: see our piece on the Portuguese long-distance trails and FCMP markings guide.). (Background: see our piece on the walking the Caminho Português de Santiago from Porto in 2026.). (Background: see our piece on the Bandeira Azul, ISN-lifeguard and Praia Acessível guide.)

Background: See the March 2026 INE tourism release and Madeira's first ever million-night March.