News | 2025/11
Iceland raises tourist taxes to fund nature protection
From late 2025, visitors to Iceland will see higher nightly taxes on hotel stays and short-term rentals.
Iceland has confirmed an increase to its nightly tourist tax on hotels, guesthouses, and short-term rentals, set to take effect in late 2025. According to the Icelandic government, the additional revenue will be ring-fenced for trail maintenance, waste collection, and protection of fragile natural sites that receive heavy visitor traffic.
Officials say the extra revenue will be ring‑fenced for trail maintenance, waste collection and protection of fragile natural sites that receive heavy visitor traffic.
Local tourism operators have welcomed clearer rules but warn that travellers should factor the new fees into their budgets, especially when booking longer road trips around the island.
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