The Finnish Ministry of Finance is taking steps to introduce legislation that would empower municipalities across the nation to impose taxes on both domestic and international tourists.
On Friday, Finance Minister Rika Purra articulated the initiative’s potential, expressing that it would provide popular tourist destinations with a much-needed avenue to enhance their revenue stream from tourism. Ultimately, the decision to levy such a tax will be left to individual municipalities.
The proposed tourist tax aims to help municipalities offset expenses associated with managing tourism, particularly in areas that see a significant influx of visitors. According to the Ministry, the legislation is designed to ensure that all types of accommodations are treated equally, meaning the tax could apply to both local and foreign guests staying in paid lodging.
Tourist taxes are not a novel concept in Europe. Cities like Venice, Paris, and Seville have successfully implemented such fees, showcasing a model that Finland is now considering.
The next phase involves soliciting consultation and feedback on the proposal. If the legislation is enacted as anticipated in 2027, municipalities will have the chance to deliberate on the tax in their respective 2028 budgets, allowing them to decide whether to implement and collect it that same year.