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Faraz Pirzada

5 min read
September 29, 2025

Edinburgh Short-Lets 2025: Licence, Planning & 5% Levy

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Edinburgh Short-Lets 2025: Licence, Planning & 5% Levy

Last updated:
September 29, 2025
Short-stay rules / Regulations

TL;DR

In Edinburgh you must hold a short-term let (STL) licence. The entire city is a Control Area (since 5 Sept 2022): secondary letting of an entire dwelling (not your principal home) needs planning permission for changes after that date; home sharing/letting usually doesn’t. A 5% visitor levy applies to the first 5 nights from 24 Jul 2026 (with pre-1 Oct 2025 paid bookings exempt). Scotland uses 140/70 to decide Business Rates. Keep to the mandatory safety conditions.

Table of Contents

Do you need a licence in Edinburgh? (Yes — Scotland-wide)

Scotland’s STL licensing scheme applies everywhere. New hosts need a short-term let licence before taking bookings; existing hosts had to apply by 1 Oct 2023. You must meet mandatory conditions (safety, EPC/gas/electrical checks, legionella, insurance, occupancy, complaints handling) and display your licence number on every advert/listing (and make it available at the property).

Fees & how to apply (Edinburgh)

  • Fees 2025–26: see the council’s fee table (e.g., new home sharing £120; home letting per occupant). Check full schedule for renewals and categories.
  • Apply online: use the STL applications hub; upload documents and pay electronically (no paper/cheques).

Planning in Edinburgh’s citywide Control Area

The whole council area is a Short-Term Let Control Area (effective 5 Sept 2022). From that date, using a dwelling that is not your principal home as an STL is deemed a material change of use requiring planning permission. Home sharing/letting (your own home) generally does not need planning permission, but check edge cases. National policy is set in Planning Circular 1/2023.

If your STL use pre-dated 5 Sept 2022


Pre-designation cases are judged on material change of use tests; many operators seek a Certificate of Lawfulness to evidence long-standing use. Circular 1/2023 explains the non-retrospective approach and assessment factors.

Visitor levy (what, when, exemptions)

  • Rate: 5% of the accommodation cost (before VAT), extras excluded.
  • Nights: applies to the first 5 nights only.
  • Start: 24 July 2026.
  • Exemption: stays on/after 24 Jul 2026 that were booked and paid (in part/whole) before 1 Oct 2025 are not subject to the levy.
  • Scope: covers short-term lets alongside hotels/B&Bs/hostels, etc.

Business rates vs Council Tax (Scotland’s 140/70)

A property is rated Non-Domestic (Business) Rates where it is available for 140+ days and actually let for 70+ days in the financial year; otherwise it remains in Council Tax. Evidence is checked by the local Assessor annually.

Fire & safety: the mandatory conditions (Scotland)

Licence conditions require:

  • A current fire risk assessment, interlinked smoke/heat alarms, clear escape routes, and CO alarms where required.
  • Valid EPC, gas safety (if applicable), EICR and PAT (as required); keep records.
  • Legionella controls, public liability insurance, maximum occupancy, complaints procedure, and licence number displayed on all adverts/listings.

Mini How-To: Stay compliant in Edinburgh (step-by-step)

  1. Classify your STL & licence — Are you secondary letting, home letting, home sharing, or home letting & sharing? Start/complete your licence with up-to-date certificates and insurance; add the licence number to all listings.
  2. Check planning — If you secondary let an entire flat/house, and that change happened after 5 Sept 2022, apply for planning permission. If use pre-dated that, consider a Certificate of Lawfulness. Home sharing/letting typically does not need planning.
  3. Safety first — Complete the fire risk assessment; install interlinked alarms; keep EICR/PAT/gas/EPC/legionella records; provide a guest safety info pack.
  4. Rates & tax — Track availability and actual let days. If you meet 140/70, expect NDR assessment; if not, Council Tax applies.
  5. Prepare for the levy — From 24 Jul 2026, configure PMS/OTAs to add 5% for the first 5 nights; apply the pre-1 Oct 2025 payment exemption.
  6. Re-check yearly — Licensing conditions, fees, and planning policy are reviewed; check the council fees page each year.

Brief note: Always confirm specifics with City of Edinburgh Council — local policy and fees can change.

FAQs

Do I need a short-term let licence in Edinburgh?
Yes. All STLs in Scotland require a licence; new hosts must be licensed before taking bookings.

When does planning permission apply?
In the citywide Control Area, secondary letting of an entire dwelling (not your principal home) after 5 Sept 2022 needs planning permission; home sharing/letting usually doesn’t.

What if I used my property as an STL before 5 Sept 2022?
Pre-designation use is judged on material change of use; many hosts seek a Certificate of Lawfulness to evidence long-standing use (see Circular 1/2023).

When does the visitor levy start and how much is it?
5% (before VAT) on the first 5 nights, for stays from 24 July 2026. Stays on/after that date booked & paid before 1 Oct 2025 are exempt.

When do I pay Business Rates instead of Council Tax?
When the property is available ≥140 days and actually let ≥70 days in the financial year; otherwise it remains in Council Tax.

Where do I show my licence number?
On every online listing/advert and available at the property for guests.

Not Advice: This guide highlights key points for short-term letting and is not legal or tax advice. Rules change — always check the relevant authority’s website for your property and seek professional advice if unsure.

The Insider team at Houst is dedicated to providing up-to-date and relevant information on short-term rentals. For guest-posting inquiries, reach out at editorial@houst.com. We are here to help you navigate the world of short lets and look forward to assisting you with your needs.

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