Short-term lets in Scotland: licence, control areas and visitor levies

Scotland was the first UK nation to license every short let, and the system is now mature: councils issue licences, planning authorities can ring-fence whole areas, and a first wave of visitor levies has begun. For owners the rules are demanding but predictable. This guide reflects official sources checked in September 2026.

No licence, no guests

Under the Civic Government (Scotland) Act 1982, as extended to short-term lets in 2022, you need a licence from your local council before you accept bookings or guests. New hosts have needed one since 1 October 2022; hosts already trading had to apply by 1 October 2023. Licences cover secondary letting (a property that is not your home), home letting (your home while you are away) and home sharing (a room while you are there). They usually run for three years, and each council sets its own fees. Operating without a licence is a criminal offence, punishable by a fine of up to £2,500 and a ban of up to a year from applying.

What the mandatory conditions ask of you

Every licence carries national conditions, and councils may add local ones. In practice you will need:

• a property meeting the repairing standard, including the tolerable standard;
• adequate heat, smoke and carbon monoxide alarms, and a fire risk assessment;
• a gas safety certificate less than twelve months old, an electrical installation condition report and portable appliance testing;
• a Legionella risk assessment for the water system;
• furniture that meets fire safety rules, with proof;
• buildings insurance for the life of the licence and public liability cover for each stay;
• a valid energy performance certificate, with the rating shown in adverts for a whole property;
• guest numbers no higher than the maximum the council approves, and key information displayed for guests.

The licence number must also appear on your listings, and the council can inspect.

Control areas: where planning permission comes first

A planning authority can designate all or part of its territory as a short-term let control area. Inside one, using a whole dwelling that is not your main home as a short let requires planning permission, and a licence application will generally need that permission or proof it is not required. Two control areas exist today. The whole City of Edinburgh has been one since September 2022, and permission for secondary letting there is hard to obtain, particularly for flats sharing a common stair. Badenoch and Strathspey, around Aviemore in the Highland Council area, became one at noon on 4 March 2024.

More may follow. Perth and Kinross Council agreed on 17 June 2026 to ask Scottish Ministers to approve a control area covering Highland Perthshire and the northern part of Eastern Perthshire, and was awaiting their answer when we wrote this. Highland Council consulted from May to June 2026 on two further areas, the City of Inverness and a Highland Rural zone. Outside control areas, planning authorities still judge case by case whether a short let is a material change of use.

Visitor levies

The Visitor Levy (Scotland) Act 2024 lets councils add a charge on overnight stays, collected by the accommodation provider. Edinburgh's levy has applied since 24 July 2026: 5% of the accommodation cost, before VAT, on the first five nights, with stays booked and paid before 1 October 2025 exempt. Glasgow follows on 25 January 2027, then Aberdeen from 1 April 2027, Stirling from 14 June 2027 and West Dunbartonshire from 1 July 2027, each at its own rate and with its own cap on nights. A 2026 amendment allows councils to choose a fixed charge per room per night instead of a percentage. Your booking system must handle it and your prices should account for it.

Rates, council tax and income tax

A self-catering property in Scotland is assessed for non-domestic rates when it is available to let for at least 140 days in the financial year and actually let for at least 70. Fail either test and it is treated as a dwelling for council tax, where councils can charge a premium on second homes; check your council's current policy. For income tax, Scottish taxpayers pay Scottish rates on property income, and the furnished holiday lettings regime ended across the UK in April 2025. The separate property income rates announced for April 2027 apply outside Scotland; the Scottish Government sets its own.

Our reading of the Scottish market

Licensing is paperwork, not a bar: with a well-maintained property and a tidy compliance file, a licence is within reach almost everywhere. The real constraint is planning, in Edinburgh above all and potentially in parts of the Highlands and Perthshire. Before buying, check whether the address sits in a control area or a proposed one. Tell us about your property; we study every request and tell you honestly whether and how we can help.