Propertymark is warning letting agents that they will need to have robust processes in place to cope with varying rules for short lets in Scotland.

Even before the first council in Scotland is charging the new short lets visitor levy, the Scottish Government is changing the rules. It’s going to amend the Visitor Levy (Scotland) Act 2024, giving councils more flexibility in how they design and run local schemes. 

This sits alongside the existing timetable for visitor levies to start from spring/summer 2026, with Edinburgh already committed to introducing a 5% levy on overnight stays from July 24.

The Act currently allows councils to charge a percentage of the accommodation cost on paid overnight stays, with income ring-fenced for services and facilities used by visitors.

But following feedback from local authorities and the tourism sector, ministers now plan to introduce a Visitor Levy (Amendment) (Scotland) Bill in early 2026. 

If passed, it will offer a fixed-fee alternative to percentage charges; allow different rates in different circumstances; and give details of how levies work through third-party platforms.

Councils will still be able to use a percentage model, or they will have the option to set a fixed amount per night. Additionally, they will be able to set different fixed amounts for different geographical areas, times of year, or types of accommodation. This is intended to let councils tailor schemes to local markets – for example, higher seasonal charges in high-pressure areas, or differentiated treatment of hostels versus hotels.

The amendment will also spell out how the levy must be applied where bookings are made via online travel agents and platforms, and what information accommodation providers must give to councils to support collection and enforcement.

Propertymark tells members in Scotland: “Although the details are still moving, some practical implications are already clear for agents operating in Scotland. Depending on how the amendment Bill progresses, different charging structures may operate in different council areas. Systems used by agents and landlords will need to cope with percentage-based charges, fixed per-night or per-person fees, and seasonal or area-based variations.

“Many schemes, including Edinburgh’s, cover short-term lets as well as traditional hotels and B&Bs. Agents managing mixed portfolios will need clear processes to identify which stays attract a levy, calculate and collect the correct amount, and ensure it is recorded and remitted accurately.

“Landlords, especially those new to the sector, will need clear explanations of when the levy applies, how it interacts with VAT and other local charges, and how it should be presented in advertising and on invoices.”