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German Cities Expand Overnight Stay Taxes Amid Revenue Needs

Kassel to vote on a 5% levy by May 5, while Offenbach plans a 2026 implementation and Schwerin raises its rate to 7%.

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Overview

  • Kassel's city council will decide on May 5 whether to implement a 5% overnight tax starting July 1, 2025, aiming to generate €3 million annually.
  • Offenbach has approved an overnight tax for 2026, expected to bring in €1.3 million, with part of the revenue allocated to tourism marketing.
  • Schwerin has increased its overnight tax to 7% as of May 1, 2025, projecting an additional €400,000 in annual revenue.
  • Hospitality and business associations, including Dehoga Hessen, oppose the taxes, citing increased costs for guests and administrative burdens for businesses.
  • Legal constraints prevent Kassel from adopting a tourism contribution model, as its Bad Wilhelmshöhe district is classified as a spa, limiting levy options.