Amsterdam to increase tourist tax to 20% by 2031

Amsterdam is set to implement a gradual increase in its tourist tax, rising from the current 12.5% to 20% by 2031. This policy, supported by the local coalition of PRO Amsterdam and D66, aims to curb overtourism and manage the city's annual overnight stays, which have consistently exceeded the 20 million limit set by authorities.

The tax hike coincides with a national increase in Value Added Tax (VAT) on hotel accommodations in the Netherlands, which rose from 9% to 21% this year. Consequently, the total tax burden on hotel stays in Amsterdam is projected to reach approximately 41% by 2031.

While the city expects to use the additional revenue for infrastructure, green spaces, and social programs, the hospitality sector has expressed concerns. The industry organization Koninklijke Horeca Nederland (KHN) warns that the combined tax burden may reduce the country's international competitiveness and suggests that tourists might shift to neighboring municipalities with lower rates.