Rise in Tourism Income Tax by 42% in Q1 Porto

Rise in Tourism Income Tax by 42% in Q1 Porto

Putting Porto on the Global Tourist Map:

Porto's appeal as a top tourist destination continues to shine, thanks to a strategic adjustment in the municipal tourist tax (MTT)! In a recent announcement, the city council reported a whopping 42% surge in MTT revenue for the initial quarter of 2025, compared to the same period in 2024.

By the end of April 2025, a whopping 9.3 million euros had been collected, marking an impressive growth from the 6.6 million euros recorded in the corresponding period of 2024. This surge, the council explains, stems from the doubling of the MTT from two to three euros per tourist overnight stay. But it's not solely about the tax hike—the city's ongoing allure remains a critical factor, too.

The MTT, enacted on March 1, 2018, targets the burgeoning activity within the city. But what exactly have they done with the windfall? The city council outlined three core investment areas, each one woven into the annual municipal budget.

First and foremost, the council aims to diversify Porto's tourist offerings. This involves cultivating tourist neighborhoods, devising new routes, and training professionals to ensure Porto continues to stand out in the competitive global tourism landscape.

Next, the council focuses on the regularization and qualification of the tourist sector. This means equipping the industry with the necessary training tools to maintain Porto's sterling reputation as a go-to destination. Lastly, the council works on regulating public space usage through street animators.

This MTT-generated revenue plays a pivotal role in bolstering Porto's administrative budget, enabling the city to further invest in vital areas such as security, public space upkeep, and signage. The council remains committed to enhancing the quality of its destination, ensuring Porto continues to captivate tourists from far and wide.

Back in January 2025, the Porto Municipal Chamber revealed that a staggering 20.9 million euros had been collected in liquid revenue in 2024—a 8.13% climb compared to the 19.2 million euros recorded in 2023.

[1] Revenues from Porto's municipal tourist tax have seen a substantial increase of almost 42% in the first four months of 2025. This reflects the adjustment of the tax from two to three euros per overnight stay, with revenues rising from 6.6 million euros in 2024 to 9.3 million euros in 2025.

[2] The rate increase, implemented on December 1, 2024, is primarily responsible for this revenue spike. The new rate applies to individuals over 13 years old and is limited to seven consecutive nights.

[4] Porto's approach aligns with a global trend of increasing tourist taxes to manage overtourism and fund local services. This trend is observed across multiple countries, including the US, Spain, France, Italy, and beyond.

[1] This substantial increase in Porto's municipal tourist tax revenue, approaching 42% in the initial four months of 2025, is a result of the strategic tax adjustment from two to three euros per tourist overnight stay.

[2] The hike in the municipal tourist tax rate, effective from December 1, 2024, mainly contributed to the significant surge in revenue, with overnight stays by individuals over 13 years old, limited to seven consecutive nights, now subject to the increased tax.

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