Edinburgh declares Scotland’s first visitor levy

Edinburgh City Councillors have formally agreed to introduce Edinburgh’s Visitor Levy scheme. Hailed as a ‘historic moment for Edinburgh’, the decision was taken during a special meeting of the Council held in January. From 24 July 2026, a 5% fee will be applied to the cost of overnight accommodation in Edinburgh, capped at five nights in a row. Businesses will need to apply the levy to any advance bookings made as of 1 October 2025 for stays on or after 24 July 2026.

The levy is projected to raise up to £50 million a year once established, for the city to invest in protecting, supporting and enhancing Edinburgh’s worldwide appeal as a place to live and visit. The final proposals for the scheme have been updated to provide accommodation providers and booking agencies with extra time to prepare systems for advance bookings ahead of next summer’s launch.

Historic moment for Edinburgh

Responding to the decision, Council Leader Jane Meagher said: “What an historic moment for Edinburgh. Introducing this ground-breaking visitor levy means realising a once in a lifetime opportunity to invest tens of millions of pounds towards enhancing and sustaining the things that make our city such a great place to visit – and live in – all year round. The scheme has been many years in the making and I’m grateful to Council officers, businesses and residents who have helped shape it, every step of the way. It’s introduction is declared today with a huge amount of backing, not least from local residents. At all stages we’ve listened to and taken account of the views of industry and other stakeholders. It’s in this spirit that we’ve also extended the amount of time hoteliers and small businesses will have to prepare for the changes that are coming in. It’s vital that we continue to work closely as we get ready to launch this scheme and deliver the many benefits it is going to bring. We’ve always said this is a city fund and spending decisions need to be taken with a whole city mindset, and we’ll soon be establishing a Visitor Levy Forum with an independent Chair.”

The Visitor Levy (Scotland) Act was passed in the Scottish Parliament in May 2024. It received Royal Assent in July 2024. The legislation allows councils in Scotland to tax overnight accommodation if they wish to do so. Glasgow City Council is currently holding a public consultation over also introducing a 5% visitor levy on overnight stays in Scotland’s largest city.

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