Finland plans accommodation tax for tourists

Finland is preparing a tourism tax that could add 2% to 5% to the price of hotels, holiday homes and other short-term accommodation from the start of 2028.

The Finance Ministry’s draft legislation would give municipalities the power to introduce the charge. But business organizations, Finnair and several other interest groups have criticized the proposal, arguing that it would create a substantial administrative burden for revenues expected to range from a few million euros to several tens of millions annually.

Critics also fear the tax would make Finland a more expensive destination for tourists and weaken the competitiveness of local businesses. Another point of contention is that the revenue would not be earmarked for tourism development. Instead, it would go into municipalities’ general budgets.

Kittilä, a municipality heavily dependent on tourism, supports introducing the tax but prefers a fixed charge for each overnight stay rather than a percentage-based levy. It also wants the money collected to fund local tourism infrastructure.