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Funchal Considers Raising Tourism Tax Amid Regulatory Review

Madeira GuideMadeira Guide
January 8, 2026
3 min read

The Funchal City Council has unanimously approved a review of the municipal tourism tax regulation, with potential increases to the current rate of two euros per night.

The Funchal City Council has announced a unanimous decision to initiate a review of the municipal tourism tax regulation. This move may lead to an increase in the current tourism tax, which is set at two euros per night. The decision was made during the weekly meeting of the municipal executive, led by President Jorge Carvalho.

The tourism tax, initially implemented on October 1, 2024, applies to hotels and local accommodations. On January 1, 2025, it was extended to include cruise ship passengers. This fee is collected to support the maintenance and development of infrastructure that benefits both tourists and residents alike.

Jorge Carvalho emphasized that the objective of the review is to make necessary adjustments and updates to the regulation. The council aims to ensure that the tax remains fair and effective in addressing the needs of Funchal's tourism-driven economy.

Madeira, known for its scenic landscapes and vibrant culture, relies heavily on tourism. The potential increase in the tax rate is seen as a way to enhance the island's infrastructure, ensuring it can continue to provide a high-quality experience for both visitors and locals.

While the exact details of the proposed changes have yet to be disclosed, the initiative reflects a broader strategy to align the island's tourism policies with its economic and environmental goals.

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Madeira Guide

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