Finnish Government Proposes Optional Tourist Tax for Municipalities
The Finnish government, led by the National Coalition Party (NCP), has advanced plans to introduce an optional tourist tax for municipalities. The Ministry of Finance has released a draft proposal for public consultation, seeking feedback on a new levy that would allow local councils to tax short-term paid accommodation.
The proposed tax would be optional for municipalities, with revenues remaining in the collecting municipality. The Ministry of Finance (MoF) reports that the tax would apply to all forms of short-term paid accommodation, regardless of type or scale. Municipal councils would set the tax rate between 2% and 5% of the accommodation price, excluding VAT. The Finnish Tax Administration would oversee collection, with taxpayers required to self-assess and file returns monthly, though only for periods in which taxable operations occur.
The Ministry estimates the tax could generate millions of euros annually for popular tourist destinations while having a limited impact on tourism volumes. However, MoF notes that the effects may vary significantly between municipalities and businesses, as the tax would not be uniformly applied across the country. The proposal also acknowledges potential administrative burdens for accommodation providers, municipalities, and tax authorities.
The consultation period for the draft proposal runs until 31 August 2026, with the government aiming to submit the final proposal to Parliament later that year. If approved, the law would enter into force on 1 March 2027, though the tax would not be collected until 2028 (Daily Finland).
The initiative follows earlier government decisions in April 2026 to explore a tourist tax, aligning Finland with several other EU countries that already impose similar levies. Daily Finland highlights that the tax is intended to provide municipalities with a new revenue stream from tourism, particularly in areas with high visitor numbers.