Évora Introduces Tourist Tax: What Investors in Alentejo Need to Know

Évora's New Tourist Tax: A Key Update for Alentejo Property Investors

Foreign investors with interests in Portugal's booming short-term rental market should take note: the historic city of Évora has introduced a municipal tourist tax. As of August 1, 2025, a fee of €1.50 per person, per night will be levied on all overnight stays, directly impacting the operational costs and revenue calculations for rental properties in this prime Alentejo location.

This move makes Évora the first municipality in the Alentejo region to adopt such a measure, signaling a shift in local policy to manage the impacts of tourism. For investors, this is a critical piece of financial information that must be integrated into pricing strategies and profit forecasts.

The tax is designed to fund improvements in local infrastructure, heritage preservation, and public services, which can, in the long term, enhance the city's appeal and potentially increase property values. The Évora City Council projects an annual revenue of at least €600,000 from this initiative. According to a financial analyst from a Lisbon-based consultancy, "While the tax is a new expense, the reinvestment in the city's quality of life and tourist infrastructure is a positive long-term factor for property appreciation in the region."

• Update Financial Models: Immediately incorporate the €1.50 per night tax into your ROI calculations for any current or prospective properties in Évora.
• Adjust Pricing Strategy: Decide whether to absorb the cost or pass it on to guests. Transparency with potential renters about the fee will be crucial for maintaining positive reviews.
• Implement Compliant Procedures: Ensure your property management system is set up to correctly collect, track, and remit the tax to the municipality in accordance with the new reporting deadlines, which have been extended to October for the initial period.
• Monitor Regional Trends: With Évora setting a precedent, other municipalities in the Alentejo may follow suit. Investors should stay informed about similar potential tax introductions across the region.

This development underscores the importance of staying current with local regulations to ensure both compliance and profitability in Portugal's dynamic real estate market. Explore opportunities with realestate-lisbon.com.