Finland Drafts Law Allowing Municipalities to Collect Tourist Taxes

The Finnish government has launched an initiative to allow municipalities to collect a tourist tax on short-term accommodation.

The four-party coalition, led by the conservative National Coalition Party, announced on Friday that legislative drafting for the new fee is officially underway.

Following a preliminary feasibility report by the Ministry of Finance, the new law will outline how local authorities can implement the fee.

The legislation will require parliamentary approval because this represents a completely new form of taxation in Finland.

Minister of Finance Riikka Purra stated in a press release that the goal is to create a simple and clear tax model.

“A tourist tax would give municipalities that are popular tourist destinations a way to collect more income from tourism,” Purra said.

Under the proposed framework, individual municipalities will retain the authority to decide whether to adopt the tax. All revenue generated by the fee will remain directly with the local council that collects it.

To ensure equal treatment across the hospitality sector, the charge will apply to all forms of temporary paid accommodation. It will be levied on both domestic travelers and foreign visitors staying in the country.

While new to Finland, tourist taxes are already a standard policy across much of the European Union. Major European destinations like Amsterdam, Paris, and Venice currently charge nightly visitor levies to help fund local infrastructure and manage tourism impacts.

In Finland, adopting this municipal fee could provide vital financial support to high-traffic regional hubs. Destinations such as Helsinki and the winter resorts of Lapland frequently face increased infrastructure costs during peak travel seasons.