Seven municipalities in the region currently apply a tourist tax: Albufeira, Faro, Lagoa, Loulé, Olhão, Portimão and Vila Real de Santo António.

There is no single tourist tax covering the entire Algarve.

Instead, municipalities set the rules, so the amount visitors pay, the period the tax applies, and the available exemptions can vary depending on where they stay.

Contribution allocation

In Albufeira, the municipal tourist tax is €2 per person per night and applies to guests aged 13 and over for a maximum of seven consecutive nights. The tax is charged between 1 April and 31 October.

Albufeira Council confirmed in March that the tax continues to apply in 2026 and is collected directly from guests, normally at check-in. The municipality says the money contributes towards areas including sustainability, safety and health, as well as the maintenance and development of tourism-related services.

In Lagoa, visitors also pay €2 per person per night during the high season, which runs from 1 April until 31 October. During the low season, between November and March, the amount drops to €1 per night.

The rules published by Lagoa Council state that the charge is a municipal overnight tax intended to help fund activities and investments linked directly and indirectly to tourism in the municipality.

Loulé, which includes major tourist destinations such as Vilamoura, Quarteira and Quinta do Lago, has also introduced a municipal tourist tax. The council approved the measure as a way of helping to maintain the quality of public spaces, infrastructure and services in a municipality that receives large numbers of visitors.

Tourists can also face an additional overnight charge when staying in Faro, Olhão, Portimão and Vila Real de Santo António, although the rules and exemptions are set separately by each municipality.

In Portimão, for example, the tax follows a seasonal system, with a higher rate during the main tourism season and a lower charge during the winter months.

Vila Real de Santo António's municipal regulations also limit the tax to a maximum of seven nights per stay. The council states that money raised through the measure is intended to support the promotion of the municipality, sustainable tourism and the preservation of local natural and landscape resources.

Holiday cost

The additional charge is generally collected by hotels, tourist resorts, local accommodation and other establishments covered by the respective municipal regulations before being transferred to the municipality.

For visitors, this means the final cost of a holiday in the Algarve can vary slightly depending on the municipality they choose to stay in, even when destinations are only a short distance apart.