The Finnish Government has announced plans to introduce new legislation that would allow municipalities to levy a tourist tax, creating an additional revenue stream from tourism.
The Ministry of Finance has assessed the feasibility of adopting a tourist tax in Finland. A preliminary report has been drawn up and key stakeholders consulted in preparation for the drafting work. Based on the initial report, the Government decided to begin legislative drafting of a tourist tax.
Riikka Purra, Finland’s Minister of Finance, said, “A tourist tax would give municipalities that are popular tourist destinations a way to collect more income from tourism. The goal is to create a simple and clear tax model. Municipalities themselves would decide whether to adopt the tax.”
The tourist tax, if introduced, would apply to short-term paid accommodation and would cover both domestic and international travellers. It would also extend across all forms of temporary accommodation to ensure uniformity. The tax is expected to be set as a moderate percentage of the accommodation cost, in line with similar practices across several European Union countries.
As a new category of taxation in Finland, the framework will be defined through dedicated legislation outlining the conditions under which municipalities can adopt the tax. Revenues collected would remain with the respective municipalities to help offset costs associated with tourism.
The Ministry has begun drafting the legislation, with a proposal expected to be released for public consultation via Lausuntopalvelu.fi. If approved, the law could come into force in 2027, enabling municipalities to incorporate the tax into their budgets from 2028, with collections commencing the same year.
