Airbnb and the City of Lisbon signed an agreement on Friday to promote responsible home sharing and simplify tax payment of tourists, according to a statement sent to media by the home and room renting site.

From May this year, "Airbnb will collect and remit tourist tax from guests on behalf of hosts in Lisbon," the statement reads, adding that tax will be added to the total amount paid by the guests on all stays and remitted to City Hall every quarter.

"It is clearer and simpler for everyone, and will facilitate that City of Lisbon receives this important financial resource," Airbnb points out.

The statement also says the agreement with Airbnb is "an important step to simplify tax processes and clarify home sharing rules for hosts," adding that "home sharing contribution for the economy, job creation and families budget has been important."

Airbnb was founded in August 2008 in San Francisco, California of the United States and connects people to hosts in over 190 countries, with Portugal being one of the main markets in Europe.

Portugal received over 1 million airbnb tourists in 2015 and Lisbon is one of the top 10 cities to welcome guests through the website.