Edinburgh Set to Introduce Unprecedented Tourist Tax Amid Mixed Reactions

A new tourist tax is set to be implemented in Edinburgh, Scotland, marking a significant first for the United Kingdom. The City of Edinburgh Council has decided to introduce a 5% fee on overnight accommodations starting next year.

In late January, the council outlined plans to levy this tax on a variety of lodging options. The tax will officially come into effect on July 24, 2026. This initiative aims to generate additional revenue for the city while also addressing the growing demands of tourism.

Details of the Tourist Tax

The 5% payment will apply to the cost of overnight accommodation before VAT is added. Notably, it will not cover extras such as parking, meals, drinks, or transportation. This information comes from the City of Edinburgh Council’s official website, which details the logistics of this upcoming tax.

Who Will be Affected?

This fee will extend beyond traditional hotels. The new tax will also affect self-catering apartments, aparthotels, bed and breakfasts, guest houses, hostels, and student rentals. These accommodations will incur the tax only when rented to visitors who are not Edinburgh residents. Additionally, it will apply to vehicles and boats that operate primarily in one location, holiday rentals, and caravan or campsite facilities.

Duration and Capping of the Levy

In a significant detail, the tax will be capped after the first five consecutive nights of lodging. This measure aims to alleviate the financial burden on longer-term visitors while still contributing to the city’s revenue.