Propertymark is backing a move by Edinburgh council to slap a 5% levy on overnight stays from next summer – and it’s telling letting agents to prepare for the tax.

The council in the Scottish capital says the charge will apply to bookings made on or after October 1 this year, although only for stays on or after July 24 2026.

The Visitor Levy (Scotland) Act 2024 gives local authorities the power to introduce this charge on a wide range of visitor accommodation. Funds must be reinvested locally in services used by tourists, such as public transport, green spaces, and toilets.

The levy applies to hotels, guest houses, bed and breakfasts, self-catering properties, hostels, campsites, and stationary vehicles or boats used for overnight stays. The charge is based only on the cost of the accommodation, excluding extras such as meals, parking, entertainment, or laundry. Councils must apply the same percentage rate to all types of accommodation within a scheme area, although rates may vary between local authorities. 

Although the levy is due when a guest occupies the property, it applies to any stay after the scheme begins if the booking was made on or after October 1. Bookings paid in full before a council formally adopts a scheme will be exempt.

Landlords are legally responsible for collecting and paying the levy, but they may delegate this to a letting agent or platform, subject to the local authority’s agreement. Agents may also be required to show the levy separately in invoices and published prices, depending on future regulations.

A statement from Propertymark says: “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.”