Lisbon Imposes Tourist Tax on Cruise Ship Passengers

Lisbon Imposes Tourist Tax on Cruise Ship Passengers

Starting in January 2024, cruise ships arriving in Lisbon will be required to pay a €2 tourist tax for each passenger that disembarks in the city.

This new policy aims to generate an additional €1.2 million in annual revenue for the municipality.

Tax Collection Formalized Through Port Authority and City Council Protocol

The tourist tax collection will be handled through the Port of Lisbon Authority (APL), which is finalizing details of the process with the Lisbon City Council (CML).

The tax will be paid by cruise operators through an existing customs platform called Janela Única Logística.

APL stated that a protocol outlining the tax procedures is currently being finalized for signing with CML.

The tourist tax collection process will mirror what is already implemented for Lisbon’s hotel industry.

Cruise Lines Notified in Advance to Adjust Pricing

According to APL, cruise lines were notified about the 2024 implementation several months ago through their industry association, Cruise Lines International Association (CLIA).

This advance notice allowed companies to factor the tax into ticket prices sold for 2024 cruise itineraries.

APL explained that because cruise tickets are sold well in advance, the tax was not applied in 2023.

By delaying implementation until 2024, operators could include the tax cost at the time of ticket sales.

Lisbon Remains Cost-Effective Despite New Tax

The €2 tourist tax is not expected to significantly impact Lisbon’s competitiveness as a cruise destination.

Lisbon was recently ranked Europe’s most budget-friendly city for short getaways in 2023 by the Association of British Travel Agents.

The survey compared prices across 35 European cities and found Lisbon to be the most economical.

Popular tourist activities in Lisbon saw only a 2% price increase compared to 2022.

Other European cities saw larger cost jumps.

The nominal tourist tax aims to collect revenue from cruise passengers that disembark and benefit from municipal services and infrastructure.

While contributing to city coffers, the levy appears small enough to preserve Lisbon’s reputation for value.

ETIAS Exemptions Limit Impact for EU Visitors

The new tourist tax will have minimal impact on most EU visitors traveling under the Schengen Area’s upcoming ETIAS (European Travel Information and Authorization System) program.

When ETIAS launches in May 2025, EU citizens will be exempt from completing the €7 online application and can freely enter Lisbon and other Schengen countries.

The €2 tourist tax only affects non-EU cruise passengers visiting Lisbon without an ETIAS waiver.

Long-term EU residents like students, workers, and families will not incur the cruise ship levy when traveling in the Schengen Zone.

Tax Aligned with Lisbon’s Selective Immigration Approach

While welcoming tourists and selective immigrants like investors and digital nomads, Lisbon aims to manage visitor numbers and costs.

The controlled cruise ship tax mirrors Portugal’s broader shift toward more selective immigration policies.

The country’s new digital nomad visa balances attracting remote workers with limiting residence permits.

By selectively targeting cruise tourists to generate city revenue, the levy aligns with Lisbon’s nuanced immigration outlook.

New Levy Unlikely to Dissuade Cruise Travelers

While cruise travelers will pay a few extra euros in tourist taxes when visiting Lisbon, the fee is relatively minor.

The tax allows the city to offset infrastructure and service costs from high visitor numbers.

For budget-conscious cruise passengers, Lisbon remains one of the most affordable European destinations.

The tourist tax seems unlikely to discourage cruise ships from including Lisbon on their itineraries.