City tax raised 11.2 million euros to the Lisbon Municipal Council in ten months

  • ECO News
  • 3 January 2017

Charging city tax for overnight stays has earned 11.2 million euros to Lisbon’s Municipal Council, from which 3.5 million have already been applied to promoting Portugal’s capital city.

In statements sent to the Portuguese news agency Lusa, the Lisbon municipality discloses that “according to the numbers available to date (concerning October), the Lisboa City Tax raised 11.2 million euros”, although “the November and December payments are still being made”. Lisbon’s city hall added that “it will only be possible to have the full data about 2016 after January of the upcoming year”.

The Lisboa City Tax started taking effect on January 1, 2016, and it is applicable to overnight stays of all national and international tourists in all units, hotels or local accommodation; one euro is charged per night, with a maximum of seven euros.

On the budget for 2016, the city hall estimated a 15.7 million euros of overall income: according to the data sent to Lusa, of the overall amount raised, 11.2 million euros concern revenue from the city tax (7.7 million from hotel units and 3.5 million from overnights in short renting units).

Out of the 3.5 from short renting, 1.2 million euros were earned from the municipality’s agreement with Airbnb concerning May and September – Airbnd collects the city tax and sends the revenue to the municipality on behalf of the home owners. Lisbon’s city hall states contacts with other intermediate companies are being made in order to have new partnerships like the one with Airbnb.

The revenue of the City Tax is entirely meant for the Tourism Development Fund of Lisboa (created in order to finance the development of the sector in the city) and has made possible to use 3.5 million euros “to promote and publicize the city of Lisbon”, as stated by the municipality .