Rise in Local Taxes to Aid Financial Merging of the City Budget
Bremen to Raise City Tax for Accommodation, Anticipating Additional €1 Million Revenue
The Senate of Bremen has announced plans to increment the Citytax, the local expense tax on overnight accommodation, by half a percentage point, raising it to 5.5%. The alteration is slated to take effect on January 1, 2026.
A portion of the increased Citytax revenues is estimated to generate an additional €1 million annually. Bremen made this commitment as part of the Sanierungsvereinbarung with the Stability Council.
Operators of hotels, guesthouses, pensions, holiday homes, apartments, and private landlords offering accommodations via online platforms like Airbnb and Wimdu are subject to the Citytax. The tax is typically passed on to guests.
The Citytax revenues are not earmarked but are utilized to finance the tourism offer in Bremen and Bremerhaven. Exceeding the predicted additional revenues from increased overnight stays will result in the excess Citytax revenues being channeled towards tourism promotion, which will constitute 40% of the funds from 2026.
Finance Senator Björn Fecker stated, "Bremen is navigating a budget crisis. The state is therefore legally bound to lessen costs and augment revenues. The moderate hike in the Citytax bolsters the financial stability of the state and its two cities. Accommodation providers now have ample time to recalculate their charges."
In essence, tourism taxes, often known as "city taxes" or "tourist taxes," are a common feature in many cities worldwide, aiming to raise revenue to support local infrastructure, tourism services, and community projects. Bremen, similar to other cities, may utilize the earned revenues to improve infrastructure, enhance tourism services, and fund community projects that attract tourists, thus bolstering the city's tourism industry.
For increased clarity, it is suggested that readers consult Bremen City Council or Local Government, local tourism boards or visitor information centers, or local business associations to obtain the precise details about the current and proposed tourism tax rates in Bremen.
The increased Citytax revenue, expected to amount to an additional €1 million annually in Bremen, could be directed towards funding community projects, enhancing tourism services, and improving infrastructure to attract more tourists, thus boosting the local business sector, including finance, politics, and general-news. Additionally, the planned hike in Citytax, targeting accommodation providers, is a common strategy used by cities worldwide to generate revenue for local development and tourism promotion.
