In September 2010 Lisbon's Mayor António Costa admitted that his administration was considering introducing a two-tiered tourist tax along the lines of the following:
- a €1 tax on all visitors arriving in Lisbon.
- a hotel bed tax of up to €1.90 per person per night.
Ironically this came in the wake of the announcement that the Portuguese capital had won TripAdvisor’s “Most Affordable Holiday Destination” award!
To date there have been no further developments, which maybe due more to Portugal's rather delicate economic situation than any thing else.
In a reappraisal of Portugal's VAT rates towards the end of 2011, the Reduced VAT rate of 6% applicable to hotels was maintained, BUT the restaurant trade was hit with a hike from 13% to 23%.