The city council of Amsterdam, led by alderman for Economic Affairs Sofyan Mbarki, is proposing a new increase in the tourist tax on overnight stays, but only if the planned national hike in VAT on hotel stays (from 9% to 21%) fails to reduce tourist numbers.
If adopted, the extra revenue from the tax would flow into a municipal real-estate fund. The fund is used by the city to buy buildings in the city centre and repurpose them: for example to prevent them being used as tourist accommodation or tourist shops. According to Mbarki, using such funds to redevelop streets such as Oudezijds Voorburgwal and Warmoesstraat (as was earlier done with the Zeedijk) “could genuinely transform the city centre into a less commercial and more livable space.”
Already Europe’s steepest tourist tax
Currently, Amsterdam already applies the highest tourist tax in the Netherlands: 12.5 % of the overnight price (excluding VAT).
With the planned VAT increase on accommodation from 9% to 21% at national level expected to take effect in 2026, the combined cost of staying in the city may rise significantly.
Under those circumstances, the city council says it will monitor overnight stays. If the VAT hike does not sufficiently reduce tourist numbers by 2026, the additional tourist-tax increase may follow in 2027.
Photo Credits: Chait Goli/Pexels
Why the city wants to act
Amsterdam has long struggled with mass tourism, particularly in the historic city centre. Past measures have included a cap on overnight stays (20 million per year), a ban on new hotel construction in parts of the centre, restrictions on vacation rentals, a cut in river and sea cruises, and rules limiting tourist shops.
Still, many residents and local interest groups say those measures have not solved the core problems: overcrowded streets, noise, litter, loss of housing for locals, and a city centre increasingly dominated by short-stay rentals and tourist shops.
Proponents of a higher tourist tax argue that extra revenue is needed to buy up properties (especially in streets heavily used by tourists) and repurpose them for housing or local businesses, helping restore liveability for residents.
At the moment, the proposed tourist-tax increase is not guaranteed. The 12.5% rate remains official for 2026. The final decision will depend on whether national VAT changes reduce tourist overnight stays. If not, the city may move ahead with a further hike, but only after 2026.
