Bremen Amps Up the Bed Tax Starting 2026: Is It Necessary or a Burden?
Bremen raisese bed tax rate approved
Mark your calendars, travel enthusiasts! Starting January 1, 2026, you'll be shelling out a bit more for your overnight stays in hotels and pensions across Bremen, Germany. The accommodation tax, commonly known as Citytax, will go up from the current 5% to 5.5%. The vacation rental sector won't escape this change either.
This tweak, green-lighted by Bremen Parliament yesterday, comes with a forecasted boost of around one million euros in annual revenues. Finance Senator Björn Fecker (Greens) justifies this move, citing its moderate nature and the grim state of Bremen's budget. He points out that other states have been practicing such a tax increase, leaving Bremen behind in the race for additional funds.
The opposition, on the other hand, isn't too pleased. They argue that the Senate is putting undue stress on local businesses with this move.
Why the Hike in Bremen's Citytax?
German municipalities, including Bremen, have been grappling with tight budgets due to economic challenges like slow growth, increased spending needs, and difficult fiscal obligations such as the debt brake. Projections indicate that state budget deficits could reach as high as €15bn in 2025[5]. Finding innovative ways to generate local revenue becomes critical under these circumstances.
Tourist taxes like the Citytax are a popular source of funds for cities, aimed at funding infrastructure, public services, and tourism improvements, all without burdening residents excessively. As the tourism revival continues, cities can adjust their Citytax rates accordingly.
While specific legislative or policy records regarding Bremen's Citytax hike in 2026 are hard to come by, the broader context suggests fiscal motivations at play.
What's the Expected Annual Return?
Exact figures for Bremen's projected annual income from the increased Citytax are lacking. However, we know that such tax rate increases typically yield millions in annual revenues for city budgets. Given Bremen's size and tourism profile, the anticipated annual gain is probably within a few million euros, although an exact number isn't available in the current data.
The economic and social policy of increasing Bremen's Citytax is driven by the need to generate additional funds for the city's budget, with the goal of financing infrastructure, public services, and tourism improvements. This adjustment in economic and social policy, projected to bring in around one million euros annually, will impact the finance sector, including local businesses in the accommodation industry.
