Edinburgh’s landlords and letting agents have been urged to start preparing for the city’s ‘tourist tax’ which applies to bookings made on or after 1st October.
The 5% visitor levy applies from 24th July 2026 to overnight stays in hotels, guest houses, bed and breakfasts, self-catering properties, hostels, campsites, and stationary vehicles or boats used for overnight stays. Scotland’s first charge of its kind is based on the cost of accommodation, excluding meals, parking, entertainment, or laundry.
It won’t apply to children under 16, business travellers staying away for work, people in temporary homeless accommodation, or visitors staying in charity-run premises. It also exempts guests receiving disability-related benefits, including Personal Independence Payment, Disability Living Allowance, and Attendance Allowance.
Landlords will be legally responsible for collecting and paying the levy, but they can delegate this to a letting agent or platform if the local council agrees.
Letting agent trade body Propertymark says it supports visitor levies where they are fair, transparent, and properly targeted. “In areas with high numbers of short-term lets, these charges can help ease pressure on local services and ensure tourism benefits communities,” it adds.
“We continue to campaign for a level playing field between the private rented sector and short-term lets, particularly in terms of tax and property standards. Unchecked growth in holiday accommodation can reduce affordability and availability in local housing markets.
"We will work with councils as they consult on schemes and push for consistent guidance to support agents and landlords in complying with new requirements.”
Councils must reinvest funds raised locally in services used by tourists, such as public transport, green spaces, and toilets. Wales recently looked at copying Edinburgh and a Visitor Accommodation (Register and Levy) Etc. (Wales) Bill was passed last month, although the requirement to consult locally means the first 'levy', which is to be set at £1.30p per night per booking, won't therefore go live unitl 2027.
And while there are no plans to date for tax legislation in England, Manchester and Liverpool city councils, among others, have found ways around the lack of legislation by introducing a voluntary visitor levy, although Manchester's mayor Andy Burnham recently said he'd like to see it become mandatory.
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