Financial Services, Good for Business, Latvia, Taxation, Tourism

International Internet Magazine. Baltic States news & analytics Sunday, 29.11.2020, 20:53

Tourism tax to be introduced in Riga as of 2021

BC, Riga, 25.09.2019.Print version
The Riga City Council today supported the proposal on introducing a tourism tax as of 2021.

All tourist facilities will have to pay a tax at the amount of EUR 1 per person per night, but not more than EUR 10 if the person is staying longer in the Latvian capital.

According to the Central Statistical Bureau, in 2018 Riga had 133 tourist facilities that served 1,716,787 guests who spent 3,281,884 nights in the Latvian capital. This means that the tourism tax would bring more than EUR 3 million to the city's budget.

The local government expects that introduction of the tourism tax would cost about EUR 110,000, including EUR 60,000 in 2020 for three additional jobs, and EUR 83,500 would be needed annually. Also, in order to administer the tax, EUR 50,000 would be needed for special software.

Local tourism tax is common practice in many European cities, including in Kaunas and Vilnius in Lithuania.

The tourism tax will be administered by the Riga Tourism Development Bureau. 

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