Lviv with its New Tourist Tax is About to See a Change in 2026 – What You’re Paying and Why It’s Raising Eyebrows in Ukraine

Lviv, one of Ukraine’s most beloved tourist destinations, continues to thrive despite the ongoing full-scale war. As the city remains a key attraction for both domestic and international visitors, the Lviv City Council has recently approved an update to the tourist tax, marking its first major change since 2019. This updated model, set to take effect on January 1, 2026, will see foreign tourists paying a significantly higher rate than before, with the funds generated aimed at improving the city’s infrastructure and enhancing its tourism services.

The city council’s decision to raise the tourist tax is not just a revenue-boosting move, but also a reflection of Lviv’s ongoing efforts to position itself as a premier tourism hub in Ukraine, even amidst the difficulties of wartime. The increase is expected to have a lasting impact on the city’s tourism sector by creating an opportunity to improve both physical infrastructure and digital services, ultimately enhancing the visitor experience. Here’s everything you need to know about the new rates, how they’ll affect travelers, and the way these changes will support the city’s future growth.

The New Tourist Tax Structure: A Fixed Rate for Foreign Tourists

Starting in 2026, one of the most notable changes to the tourist tax in Lviv is the introduction of a fixed rate for foreign visitors. Foreign tourists will be required to pay 80 UAH (approximately $2 USD) per night, regardless of the accommodation price. Previously, the amount visitors paid was based on the cost of their hotel room, with rates ranging from 16 UAH to 40 UAH. This fixed rate marks a significant shift in the way Lviv collects revenue from foreign tourists and aims to simplify the process while also boosting income for the city.

The Lviv City Council has stated that this move will help the city grow, invest in tourism infrastructure, and create high-quality services that will improve the overall visitor experience. According to Inna Svystun, Director of the Economic Development Department, this revision was necessary to reflect the major economic and tourism sector changes that have occurred over the past six years.

“By implementing this fixed rate, we can more effectively promote Lviv, invest in its development, and create a stronger, more resilient tourism industry,” Svystun said. The fixed tax rate for foreign tourists will be applied uniformly across all types of accommodations, allowing the city to generate consistent and predictable revenue.

Domestic Tourists: No Change in Tax Rates

While the tax structure for foreign tourists has undergone significant revisions, domestic tourists will continue to pay according to a tiered system based on the price of their accommodation. For domestic travelers, the rates remain unchanged, meaning there will be no increase in their tax burden in 2026.

The existing tiered model for domestic tourism is as follows:

• Up to 750 UAH per night: 0.3% of the minimum wage (currently 24 UAH)
• 750 to 1200 UAH per night: 0.4% of the minimum wage (currently 32 UAH)
• Over 1200 UAH per night: 0.5% of the minimum wage (currently 40 UAH)

This system ensures that those paying for more expensive accommodations contribute a higher share of the tourist tax, while still keeping the rates affordable for those staying in budget accommodations. This differentiated approach reflects the city’s commitment to supporting both its domestic tourism market and the international sector while ensuring fairness in the tax distribution.

Differentiated Tax Rates for Domestic and International Tourism

The law now allows for differentiated tax rates between domestic and international tourists. For domestic tourists, the tax will be based on a percentage of the minimum wage, as detailed in the tiered system above. However, for inbound international tourism, the rate can be as high as 5%, depending on the type of accommodation and the cost of the stay. This change in the law aims to better align the tourist tax with the evolving dynamics of the global travel industry.

By implementing these revised rates, the city hopes to achieve two key goals:

1. Boosting Local Revenue: With higher rates for international tourists, the city will be able to increase the overall revenue generated by the tourist tax, which can then be reinvested in the city’s tourism infrastructure, such as improved signage, transportation services, and digital enhancements for visitors.
2. Strengthening Lviv’s Position as a Tourism Hub: Lviv’s city government expects that the increase in tourist tax revenues will contribute to the city’s reputation as a resilient and attractive destination. Despite the challenges posed by the ongoing war, the city is determined to maintain its status as a tourism hotspot in Ukraine and a favorite destination for international visitors.

Exemptions from the Tourist Tax

While the tourist tax increase will affect many visitors to Lviv, certain groups of people will be exempt from paying the tax. These include:

• Children under a certain age: Children under a specified age (typically under 16) will not be required to pay the tax, ensuring that families are not burdened by additional fees during their stay.
• Residents and long-term visitors: Those who reside in Lviv or who are staying for an extended period, such as long-term business travelers, may also be exempt from the tourist tax.
• Certain types of accommodations: Some accommodations, such as hostels or homestays, may fall under different regulations depending on local laws, and travelers staying in these types of places may be subject to different tax rates.

These exemptions help to ensure that the tax burden is not placed on those who are not visiting the city purely for tourism purposes, and allow the city to focus its revenue generation efforts on short-term, non-resident visitors.

How the Increased Tourist Tax Will Benefit Lviv’s Tourism Infrastructure

The funds generated by the increased tourist tax will be put toward improving Lviv’s tourism infrastructure. The city council’s focus will be on two main areas: physical infrastructure and digital services.

Physical Infrastructure Improvements

Lviv is one of Ukraine’s most popular cities, and its tourism infrastructure has been under pressure as visitor numbers continue to rise. The increased revenue from the tourist tax will be used to enhance key aspects of the city’s infrastructure, including:

• Improved public transportation: With more tourists visiting the city, the demand for public transportation has increased. The city is looking to expand its bus and tram networks, improve the accessibility of transportation, and create new, tourist-friendly routes that make it easier to get around the city.
• Upgraded facilities and amenities: As tourism continues to grow, so too does the need for better tourist amenities, such as improved signage, public restrooms, and information kiosks. The increased tourist tax will help fund these upgrades, ensuring that visitors have a pleasant and comfortable experience during their stay.
• Beautification projects: Lviv is known for its beautiful architecture and charming streets, and the city council plans to use some of the funds to invest in beautification projects, including street cleaning, maintenance of public parks, and restoration of historic landmarks.

Digital Services and Visitor Support

As tourism becomes increasingly digital, Lviv is also focusing on enhancing its online services. The revenue from the tourist tax will be used to develop new digital platforms and improve existing ones, such as:

• Mobile apps for tourists: Lviv plans to develop a comprehensive mobile app that will offer real-time information about events, attractions, transportation, and dining options. This app will help visitors navigate the city and make the most of their time there.
• Online booking systems: To streamline the booking process, Lviv is looking to enhance its online booking platforms for accommodations and tours, making it easier for international tourists to plan their trips and book services in advance.

These digital services will not only improve the overall experience for tourists but also help Lviv stay competitive in an increasingly digital world.

How the New Tourist Tax Will Impact Tourism in Lviv

The increase in the tourist tax is expected to have a positive impact on Lviv’s tourism sector, particularly in the long term. While the higher tax rates may initially discourage some budget travelers, the city’s commitment to improving infrastructure and services will ensure that the additional revenue is reinvested into the tourism industry. This will ultimately result in a better experience for visitors, which could attract even more tourists to Lviv in the future.

The city’s focus on creating high-quality services, modern digital platforms, and upgraded physical infrastructure will make Lviv a more attractive destination for international travelers, even as the country faces ongoing challenges. With the extra revenue generated by the tax, Lviv will be able to support its tourism sector and continue to grow as a key player in the global tourism industry.

The Future of Lviv’s Tourism Industry

Starting in 2026, Lviv will see a substantial increase in its tourist tax, particularly for foreign visitors. This change will generate additional revenue for the city, which will be used to enhance its infrastructure, improve services, and position the city as a premier tourism destination in Ukraine, even amidst the challenges posed by the ongoing war.

By implementing a fixed tax rate for foreign tourists and maintaining the existing system for domestic travelers, Lviv’s city council hopes to streamline revenue collection and ensure the long-term sustainability of the city’s tourism sector. With increased investment in both physical infrastructure and digital services, Lviv is poised to continue growing as a leading tourist destination, offering an improved experience for all visitors in 2026 and beyond.