Algarve municipal tourist tax in 2026: what each municipality charges and how to show it to guests

Updated 8 November 2026

There is no regional tourist tax in the Algarve: each municipality (câmara municipal) decides whether to charge one and passes its own regulation. In November 2026 we found a published regulation in seven of the sixteen municipalities: Faro, Albufeira, Portimão, Loulé, Olhão, Lagoa and Vila Real de Santo António. This guide sums up what each regulation says, with its publication date and the official sources at the end. Where a detail does not appear in an official source, we say so. It is not legal or tax advice: for a specific case, ask your municipality or your accountant.

How it works, in general

The municipal tourist tax is charged per night and per guest in tourism developments, Alojamento Local and, in most municipalities, campsites and caravan parks. The regulations we read follow a similar pattern, but the numbers change from one municipality to the next:

The property collects the tax from the guest, usually at check-in or check-out, and shows it as a separate, VAT-free line on the invoice.
The property registers on the municipality's online platform, declares the previous month's nights every month (even when there were none) and pays over the amount collected.
There is always a cap on consecutive nights per stay (5 or 7, depending on the municipality) and a minimum age (11, 13 or 16).
In several municipalities the property earns a 2.5% collection commission on the amount paid over, plus VAT.

Municipality by municipality: the seven that charge

Amounts per person and per night, according to each municipality's published regulation:

Faro (Regulation 1207/2024, Diário da República of 22 October 2024, in force since 1 November 2024): 2 euros from 1 March to 31 October and 1 euro from 1 November to the end of February. Maximum 7 consecutive nights. Guests aged 16 and over pay. Exempt: people with a disability of 60% or more and one companion, University of the Algarve students during the academic year, guests in medical treatment and one companion, people rehoused after a disaster or emergency, health, education and security professionals posted to Faro, and residents of the municipality, always with proof. Declaration between the 1st and the 15th of the following month on taxaturistica.cm-faro.pt, and payment within 10 working days. 2.5% commission plus VAT, claimed in February of the following year.
Albufeira (Regulation 488/2024, Diário da República of 30 April 2024): 2 euros per night, charged only from 1 April to 31 October. Maximum 7 consecutive nights. Guests aged 13 and over pay. Exempt: guests in medical treatment and one companion, and guests who fall ill during their stay, with proof; the council may approve other exemptions case by case. The council applied the tax to bookings made after 2 May 2024 and started collecting it on 21 May 2024. In 2026 it moved to a new platform for registration, monthly declarations and payment; its information note mentions 2.5% compensation and says the regulation is under review.
Portimão (Notice 5384/2024/2, Diário da República of 13 March 2024): 2 euros per night in high season and 1 euro in low season. Declarations and payments go through the Portimão Mais Fácil portal, where the property also uploads its commission invoice. We could not confirm in an official source the months of each season, the night cap, the minimum age, the exemptions or the commission rate: check the regulation on the council's website.
Loulé (Regulation 786/2024, Diário da República of 22 July 2024, amending the 2021 regulation): 2 euros per night, reduced to 1 euro from 1 November to 31 March. Maximum 5 consecutive nights. Guests aged 16 and over pay. Exempt: guests who fall ill or have a physical impairment requiring hospital admission, and cases of force majeure or natural disaster. Collected since 1 November 2024. Electronic declaration by the 15th of the following month and payment by the last day of that month. 2.5% commission plus VAT.
Olhão (tourist tax chapter of the General Fees Regulation, amended by Regulation 538/2023, Diário da República of 16 May 2023, and Regulation 664/2024 of 17 June 2024): 2 euros per night, reduced to 1 euro from 1 November to 31 March. Maximum 5 consecutive nights. Guests aged 16 and over pay. Exempt: people with a disability of 60% or more (with a multi-purpose disability certificate), and stays for health reasons, force majeure, disasters or violent acts. The municipality's service instruction gives 19 June 2023 as the start date. Declaration by the 8th of the following month on servicosonline.cm-olhao.pt and payment within 10 working days. We could not confirm in an official source whether there is a collection commission.
Lagoa (Regulation 425/2024, Diário da República of 12 April 2024, in force since 13 April 2024): 2 euros from 1 April to 31 October and 1 euro from 1 November to 31 March. Maximum 7 consecutive nights. Guests aged 13 and over pay. Exempt: people with a disability of 60% or more, students starting at the University of the Algarve (up to 60 days at the start of the academic year), guests in medical treatment and one companion, and stays the property gives away for free. Declaration by the last day of the following month and payment by Multibanco reference within 30 days. 2.5% commission plus VAT.
Vila Real de Santo António (Regulation 723/2018, Diário da República of 26 October 2018): according to the municipality's FAQ (July 2019), 1 euro per night and 0.50 euros at campsites, caravan parks and motorhome service areas. Maximum 7 consecutive nights. Children up to 10 are exempt; from 11 to 13 they pay half. The FAQ does not distinguish seasons. Registration on taxaturistica.cm-vrsa.pt within 30 days of starting activity, and payment within 10 days of the declaration, by MB WAY or Multibanco. The FAQ says the property must declare its nights even when a booking platform collects the tax. We could not confirm in an official source whether these amounts have changed since 2019, or whether there is a collection commission.

The nine municipalities where we found no tax

In Lagos, Tavira, Silves, Vila do Bispo, Aljezur, Castro Marim, Monchique, São Brás de Alportel and Alcoutim we found, as of November 2026, no tourist tax regulation published in the Diário da República or announced by the council. That does not prove there is none: check your council's website before setting your prices. What we could verify:

Lagos: the council announced in January 2019 that it would start drafting a regulation (the AMAL proposal was 1.50 euros per night from March to October, up to 7 nights, with children up to 12 exempt). We did not find an approved regulation.
Tavira: the amendment to its Fees Regulation and Table published in March 2026 (Edital 318/2026) creates no per-night, per-guest charge.
Vila do Bispo: the 2026 fees table (Edital 27/2026, of 9 February) includes no tourist tax.
Silves, Aljezur, Castro Marim, Monchique, São Brás de Alportel and Alcoutim: we found no official reference to a tourist tax.

What to do in practice

The tax is small, but it is one of the things guests dislike most when it comes as a surprise. It is easy to explain if it is always written the same way:

Show the tax on your website, on the prices or booking page: the amount per night and per person, the months, the night cap and the age from which it applies.
Say clearly whether the price you advertise includes the tax. The simplest way is a short line next to the price, for example «Municipal tourist tax not included: 2 euros per person per night, paid at the property».
Repeat it in the booking confirmation email, with the estimated total tax for that stay.
Use exactly the same details on Booking, Airbnb, Google and every platform where you appear. If one says the tax is included and another says it is not, neither the guest nor the AI can tell which price is right.
If a platform collects the tax for you, check with your municipality how to declare those nights: in Albufeira and Vila Real de Santo António, for instance, the official guidance says the property still declares them.
Update everything when the regulation changes: Faro and Loulé changed their rules in 2024, and Albufeira says its regulation is under review.

Why this also matters for AI

When a traveller asks ChatGPT or Gemini how much a stay at your property costs, the AI pulls together what it finds on your website, on the platforms and on the council's pages. If the tax shows up everywhere with the same amount and the same «included» or «not included» note, the answer is more likely to match what the guest will actually pay. If every site says something different, the AI may give the wrong price, and it is the property that looks bad at check-in.

How iQuota helps

The official page iQuota publishes for each property can state whether the price includes the municipal tourist tax and how much it is, and includes that information in the data AI assistants and search engines read. It does not declare or pay the tax for you, it does not replace your obligations to the municipality, and we cannot guarantee that an AI will recommend your property.

Want an official page that states your price, the tourist tax and direct booking clearly? The first 30 hotels join free until 30 June 2027.

See the Founding Hotels programme

Frequently asked questions

Do all Algarve municipalities charge a tourist tax?

No. In November 2026 we found a published regulation in seven: Faro, Albufeira, Portimão, Loulé, Olhão, Lagoa and Vila Real de Santo António. In the other nine we found no tax, but always check with your municipality.

Is VAT charged on the tax?

No. The Faro and Vila Real de Santo António regulations and FAQs say the tax is not subject to VAT and must appear as a separate line on the invoice.

Do babies and children pay?

It depends on the municipality. In Faro, Loulé and Olhão the tax applies from age 16; in Albufeira and Lagoa, from 13; in Vila Real de Santo António, from 11, at half rate up to 13.

Does the property earn anything for collecting the tax?

In Faro, Loulé and Lagoa the regulations give a 2.5% collection commission plus VAT, and Albufeira mentions the same rate. For Portimão, Olhão and Vila Real de Santo António we could not confirm the rate in an official source.

Should I advertise prices with the tax included?

The law does not require one single format, but what matters is being clear and consistent: say whether the price includes the tax and how much it is, on your website, in the confirmation and on every platform.

Sources

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