Edinburgh Letting Agents Prepare for New 5% Tourist Tax on Short-Term Stays

If you’re a landlord or run a letting agency in Edinburgh, there’s a major change coming that could impact your business if you deal with short-term or holiday lets.

From July 2026, a 5% tourist levy will be applied to overnight stays in Edinburgh — a move officially backed by industry body Propertymark. The tax, introduced under the Visitor Levy (Scotland) Act 2024, is set to affect a wide range of properties including self-catering accommodation, holiday lets, guest houses, B&Bs, hotels, and even stationary vehicles or boats used for overnight stays.

Tourist tax could be implemented for Air-B&B and Holiday Lets

Key Dates Landlords Need to Know

The City of Edinburgh Council plans to apply this Edinburgh visitor levy to bookings made on or after October 1, 2025, for stays taking place from July 24, 2026, onwards.

What Does the 5% Levy Cover?

The charge will apply only to the cost of accommodation, not including extras such as meals, parking, or laundry services. All accommodation types within Edinburgh’s scheme area will be taxed at the same rate, though this may differ between other Scottish councils who adopt similar schemes.

How It Affects Edinburgh Landlords and Letting Agents

Under the new rules, landlords in Edinburgh will be legally responsible for collecting and submitting the levy. However, this duty can be delegated to letting agents or short-term let platforms, subject to local authority approval.

If you’re using a letting agency in Edinburgh to manage your short-term rental property, you’ll want to ensure they are prepared for this change and compliant with any new reporting or pricing rules. Future regulations may also require the levy to be shown separately on invoices and in all advertised rates.

Why the Levy Is Being Introduced

Funds collected from the 5% levy must be reinvested locally to improve services that support tourism — including public transport, green spaces, public toilets, and other infrastructure used by visitors.

Propertymark’s Support

In a recent statement, Propertymark confirmed its support for the scheme, stating:

“We support 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.”

What This Means for Edinburgh Property Owners

If you’re a property investor, landlord, or letting agent in Edinburgh, now is the time to start preparing for this change. Whether you're running holiday lets, managing short-term rentals, or providing property management services in Edinburgh, early planning is key to avoiding any future compliance issues.

Need help navigating the changes?

At The Property Experts, we’re committed to helping Edinburgh landlords and property owners stay ahead of new legislation. If you’re unsure how the tourist tax will affect your short-term let or need guidance on property management in Edinburgh, contact us today. We work with a number of short-term and holiday let companies who will be happy to advise you.