Edinburgh Visitor Levy: What Landlords Need to Know Before July 2026

Edinburgh is about to become the first city in Scotland -- and one of the first in the UK -- to introduce a visitor levy on overnight accommodation. Starting on 24 July 2026, the City of Edinburgh Council's Visitor Levy Order will impose a charge on every short-term stay in the city. The levy applies to stays booked on or after 1 October 2025. If you own or manage a short-term let property in Edinburgh, this is one of the most significant regulatory changes since STL licensing was introduced in October 2022.

What Is the Edinburgh Visitor Levy?

The Edinburgh Visitor Levy is a 5% charge applied to the accommodation cost of each of the first five nights of a guest's stay. Note: the 5-night cap is temporary and will be removed from 25 January 2027, after which the levy applies to all nights of a stay. Accommodation providers retain 2% of the levy collected for administration costs. It applies to all short-term accommodation providers in Edinburgh, including hotels, B&Bs, serviced apartments, and short-term let properties listed on platforms such as Airbnb, Booking.com, and Google Vacation Rentals.

The levy was authorised under the Visitor Levy (Scotland) Act 2024 and confirmed by the City of Edinburgh Council's Visitor Levy Order. It is designed to fund local infrastructure projects, public realm improvements, and services that support Edinburgh's tourism economy. The Council expects to raise approximately GBP 45-50 million per year through the scheme.

Crucially, the levy is calculated on the accommodation portion of the nightly rate only -- it excludes cleaning fees, service charges, and any additional extras. For a property charging GBP 150 per night, the levy would add GBP 7.50 per night for each of the first five nights, totalling GBP 37.50 for a five-night stay.

Who Pays the Levy?

The visitor -- not the landlord -- pays the levy. It is an additional charge on top of the nightly rate, similar to the tourist taxes already common across European cities such as Amsterdam, Paris, and Barcelona. However, the legal obligation to collect and remit the levy falls on the accommodation provider. That means you, the property owner or operator, are responsible for:

• Collecting the levy from each guest at or before the time of booking
• Keeping records of all levy amounts collected, including guest names, dates of stay, and amounts charged
• Remitting the levy to the City of Edinburgh Council on a quarterly basis
• Displaying the levy transparently in your pricing so guests know the charge before they book

Failure to collect or remit the levy can result in penalties, and repeat non-compliance may put your STL licence at risk. The Council has indicated that enforcement will be integrated with its existing STL licensing compliance regime.

How Is It Collected?

For properties listed on Online Travel Agencies (OTAs) such as Airbnb and Booking.com, the collection mechanism will vary by platform. Airbnb has confirmed it will integrate automated levy collection directly into its checkout flow for Edinburgh properties, meaning the levy will be itemised and collected at the point of booking. Booking.com is expected to follow a similar approach.

For direct bookings or platforms that do not automate collection, the onus falls entirely on the operator. You will need to calculate the levy, add it to your invoicing, collect payment, and maintain records for quarterly reporting to the Council.

Impact on Nightly Rates and Yield

While the levy is technically paid by the guest, the reality is more nuanced. Edinburgh's STR market is price-sensitive, and a 5% surcharge on the first five nights will affect booking behaviour. Our analysis of comparable European markets suggests the following impact:

The key takeaway is that operators who absorb the levy into their pricing (rather than passing it on transparently) will see a more significant hit to margins. Our recommendation is to display the levy as a separate line item, as guests increasingly expect and accept tourist taxes when booking city-centre accommodation.

Exemptions

Not all accommodation is subject to the levy. The following exemptions have been confirmed in the Visitor Levy Order:

• Stays exceeding 5 nights (until 25 January 2027): Initially, the levy only applies to the first 5 nights of any continuous stay. Nights 6 onwards are levy-free. However, this cap is removed from 25 January 2027, after which the levy applies to all nights
• NHS and social care stays: Guests staying for medical treatment or care purposes are exempt
• Asylum seekers and refugees: Accommodation provided under government placement schemes is exempt
• Children under 18: The levy does not apply to guests under the age of 18
• Homeless accommodation: Emergency or temporary accommodation provided by the Council is exempt

Notably, there is no exemption for business travellers, corporate stays, or repeat visitors. All leisure and business guests staying in short-term let properties will be subject to the full 5% levy on nights 1 through 5 initially, and on all nights from 25 January 2027 when the cap is removed.

How PropertyFlow Handles the Visitor Levy Automatically

At PropertyFlow, we have been preparing for the visitor levy since the Visitor Levy (Scotland) Act received Royal Assent in 2024. Our platform handles every aspect of levy compliance for our managed properties:

How to Prepare: 5 Steps Before July 2026

Whether you manage your property yourself or use a management service, here are the steps you should take before the levy goes live:

1. Understand your obligations. Read the City of Edinburgh Council's Visitor Levy Order in full. Know the rate (5%), the initial cap (first 5 nights, removed from 25 January 2027), the quarterly reporting requirements, and that the levy applies to stays booked on or after 1 October 2025. Ignorance is not a defence.
2. Update your pricing strategy. Decide whether you will absorb the levy or pass it through as a separate charge. We strongly recommend transparent pass-through -- guests in Edinburgh expect it, and it protects your margins.
3. Check your OTA settings. Airbnb and Booking.com will require you to enable levy collection in your account settings. Do not assume it will happen automatically -- check your dashboard and follow platform-specific guidance.
4. Set up record-keeping. You will need to maintain records of every levy amount collected, broken down by guest and stay dates. If you are not using a property management platform, start a spreadsheet now and standardise your recording format.
5. Register with the Council. The City of Edinburgh Council will open a registration portal for levy collection before the 24 July go-live date. Ensure you register your property and set up your remittance account well in advance.

The Edinburgh Visitor Levy is not something to fear -- it is a predictable, manageable cost that most guests will accept without issue. The operators who struggle will be those who are unprepared, who fail to collect it, or who try to absorb it silently and watch their margins erode. The operators who thrive will be those who treat it as what it is: another compliance obligation that, when handled professionally, builds trust with guests and protects your business.