Finland considers new tourist tax on accommodations

The Finnish Ministry of Finance is preparing legislation for a potential tourist tax that would allow municipalities to voluntarily implement a levy on accommodation. The proposal suggests a tax of 2–5 percent on the VAT-free price of accommodations, covering hotels, cottages, and short-term rentals. If passed, the laws would come into effect in March 2027, with the tax being applied starting in early 2028.

Several major stakeholders, including the Confederation of Finnish Industries (EK), Palta, Suomen Yrittäjät, the Finnish Travel Association (Smal), Finnair, and SOK, have expressed opposition to the measure. A primary concern cited by these organizations is that the administrative costs of implementing and managing the tax could be disproportionately high compared to the projected national revenue, which is estimated to be between a few million and twenty million euros.

Critics also argue that the tax would increase the existing burden on the tourism sector, noting that VAT rates for accommodation have already risen. Some organizations have raised concerns regarding competitive neutrality and the necessity of a new, niche tax within the Finnish system.