The Visitor Levy (Scotland) Act was became a law in September 2024. The legislation allows councils in Scotland to tax paid, overnight accommodation if they wish to do so. Following years of consultation, the Council has decided to use the powers set out in the Act.
The Act sets out some requirements for the levy, which include
- the levy must be a percentage of the cost of an overnight stay in some types of overnight accommodation
- before a levy can be introduced, the local authority must consult with local communities, businesses and tourist organisations
- revenue generated by the levy must be used to develop, support or sustain local facilities and services substantially used by business and leisure visitors.
The levy
- is a 5% payment on the cost of the paid, overnight accommodation. The levy will be charged before VAT and will not be charged on extras like parking, meals, drinks or transport.
- will only be charged on the first 5 nights’ stay.
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will be charged at the same rate every day of the year, indefinitely, for stays from 24 July 2026 onwards.
Accommodation included in the scheme
The levy will apply to paid overnight accommodation including
- hotels
- self-catering apartments
- aparthotels
- bed and breakfasts
- guest houses
- hostels
- student lets - only when let to visitors and non-Edinburgh students
- vehicles or boats (vessels) which mostly stay in one place
- holiday/short-term lets including residential properties with licenses for
- home sharing
- home letting
- secondary homes
- caravan/camp sites
Businesses currently operating below the VAT threshold will be liable for the levy.
People liable to pay the levy
Anyone who is staying in paid, overnight accommodation in Edinburgh need to pay the levy. This includes tourists, people staying for work or visiting the city for other reasons. This includes UK and Scottish residents.
View our information for visitors page to find out who is exempt from the levy.
The scheme objective
The scheme is designed to sustain Edinburgh's status as one of the world's greatest cultural and heritage cities. It will also make sure that the impacts of a successful visitor economy are
- managed effectively
- support of the priorities set out in the Council’s Business Plan.
The objectives of the scheme are therefore to sustain, support and develop
- public services, programmes and infrastructure that provide an enjoyable and safe visitor and resident experience
- Edinburgh’s culture, heritage and events, making sure the city remains world-leading and competitively attractive to visitors as well as residents.
- the city's visitor economy by
- fostering innovation in response to environmental and societal challenges
- enhancing Edinburgh's global reputation
- while promoting responsible and sustainable tourism.