Tourist tax by municipality: the picture in Portugal.

The municipal tourist tax (TMT) is a per-guest, per-night charge that some municipalities levy on people who stay overnight in tourist accommodation, including short-term rentals (Alojamento Local). It is not a national tax: each council decides whether to apply it, the rate, the exemptions, the night cap and the age from which it's charged.

So the correct answer to "how much is the tourist tax?" is always "it depends on the municipality — and on the regulation in force at that date". More than 40 Portuguese municipalities already charge it, with rates that in 2026 typically run between roughly €0.50 and €4 per night.

As a host, your role is usually three things: collect the tax from the guest, declare it on the council's platform (self-assessment) and pay it to the municipality by the set deadlines. Platforms (Booking, Airbnb) may have their own agreements in some municipalities — check case by case.

Although each municipality has its own regulation, the tax design almost always follows the same skeleton. Knowing it helps you read any new regulation quickly:

• Per guest and per night — the tax is a fixed amount (e.g. €2) multiplied by the number of liable guests and the number of chargeable nights.
• Night cap — almost all set a ceiling (often 7 nights; in some cases 3 or 5). Beyond that, extra nights add no further tax.
• Age exemptions — exempting children is common, but the cut-off age varies between municipalities (you'll see 12, 13 or 16 depending on the council).
• Other typical exemptions — stays for medical reasons (and sometimes a companion), people with a disability above a certain degree, and specific situations each regulation defines.
• Seasonality — some municipalities (mostly in the Algarve) charge more in high season and less in low season.

Note the keywords: "often", "common", "some". None of this is universal. The same €2 rate can have a 7-night cap in one council and a 3-night cap in another, and exempt under-12s here and under-16s there. That's why this guide gives examples, not a definitive table.

The figures below are examples gathered from public and municipal sources and reflect the known picture for 2025-2026. They're there to convey the order of magnitude — don't treat them as definitive: regulations change and each council is the source of truth.

Big cities:

• Lisbon — a reference of €4 per night, with a usual cap of 7 nights; exemption typically for under-13s. Charged at check-in/check-out; the host registers on the council platform and self-assesses. There's also a separate tax for cruise passengers.
• Porto — €3 per night (in force since late 2024), with an exemption for children/young people up to 12; values are logged on Porto's Municipal Tourist Tax platform.
• Cascais and Sintra — in the €2 to €4 per-night range, with their own caps and ages; confirm with the respective council.

Algarve (many municipalities are seasonal):

• Faro — around €2 in high season (March-October) and €1 in low season (November-February); an exemption is referenced up to a certain age. Confirm caps and age with the council.
• Albufeira, Loulé, Portimão, Lagoa, Olhão — a similar seasonal model, typically €2 (high) / €1 (low), with exemption ages that vary between 12 and 16 depending on the council.
• Vila Real de Santo António — lower figures referenced (around €1, with a reduction for campsites).

Autonomous regions:

• Madeira — several municipalities typically charge €2 per night, with a cap around 7 nights.
• Azores (São Miguel) — councils with rates around €2 per night and shorter caps (a 3-night reference).

In all these cases, the instruction is the same: before setting up collection, open your council's regulation (or contact it) and confirm the rate, night cap, exemption ages and payment deadlines. Turismo de Portugal and the RNAL national register don't set these amounts — the municipality does.

If your municipality charges TMT, the practical operation usually boils down to a simple cycle, even if the details (platform, deadlines) change from council to council:

• Register — enrol the short-term rental unit on the municipality's tax platform (in Lisbon, for example, there's a deadline after starting activity).
• Charge the guest — add the correct tax (rate × liable guests × chargeable nights, within the cap) and show it transparently at booking or check-in.
• Declare and pay — file the periodic self-assessment on the platform and pay the municipality by the deadline.
• Handle exemptions — apply exemptions correctly (age, medical reasons, etc.) and keep proof where required.

Watch out for a point that confuses many people: how the tax is collected and remitted can change by channel. In some municipalities there are agreements with platforms (e.g. Airbnb may collect and remit directly in some cases), which changes what you have to declare yourself. Confirm this in the regulation and with the platform, because that's where errors of double-charging or failure to remit happen.

When a booking comes through an OTA, the tax is hostage to the platform's rules and to how it presents (or doesn't present) the amount to the guest. On your own site you control everything: you can show the municipal tax as a separate, clear line in the booking summary, with your council's rule, and even automate the calculation (per-night rate, cap, age exemption) in the booking engine.

This has two practical effects. For the guest, transparency: they see exactly how much the tax is and why, with no surprises at check-in. For you, fewer errors and less manual work: the site adds the right tax to each direct booking and leaves you a clean record for self-assessment. Collection remains your legal responsibility — but a well-built direct channel makes it predictable rather than a headache.