Guide
Running an Airbnb in Scotland legally
Since 1 October 2023, anyone offering short-term lets in Scotland must hold a licence from their local council. This applies whether you list on Airbnb, Booking.com, Vrbo, or market independently. It covers every type of short-term let — renting a spare room, letting your home while on holiday, or operating a dedicated holiday property.
Operating without a licence is a criminal offence. This guide walks you through every step you need to take before accepting your first guest.
Who needs a licence
You need a short-term let licence if you provide accommodation for fewer than 31 consecutive days per guest on a commercial basis. The scheme covers all of Scotland. Certain types of accommodation are exempt, including hotels with planning consent for that use, hostels, campsites, caravans, and accommodation provided by a registered social landlord.
- Licence duration
- Up to 3 years (councils may grant shorter periods; renewals also up to 3 years)
- Application fees
- Set by each council on a cost-recovery basis — fees vary significantly by council, licence type, and number of occupants
- Edinburgh fee example
- Home letting from £120 per occupant; secondary letting from £341 per occupant (2024/25 rates)
- Fee refunds
- Fees are generally non-refundable, even if the application is refused or withdrawn
- Renewal
- Apply before your existing licence expires — otherwise you must stop operating and submit a new application
- Licence transfer
- From June 2024, licences can be transferred to a new owner via joint application (not automatic — council approval required)
Safety requirements
All short-term let properties must meet mandatory safety conditions before a licence can be granted. These are set out in Schedule 3 of the Licensing Order and cannot be waived.
Fire safety
You must carry out a fire safety risk assessment and have the following in place:
- Interlinked smoke alarms in every room used as living accommodation and in hallways
- Interlinked heat alarms in every kitchen
- Carbon monoxide detectors in any room with a carbon-fuelled appliance (boiler, gas fire, wood burner)
- A fire blanket in the kitchen
- A fire extinguisher suitable for the property
- A clear, unobstructed fire escape route with emergency lighting where appropriate
Gas safety
If the property has a gas supply, you must have an annual gas safety check carried out by a Gas Safe registered engineer. A valid Gas Safety Certificate (CP12) must be held at all times and renewed every 12 months.
Electrical safety
You must obtain:
- An Electrical Installation Condition Report (EICR) from a competent electrician, renewed at least every 5 years (or sooner if the electrician recommends it)
- Portable Appliance Testing (PAT) for all electrical appliances provided, renewed at least every 5 years
Water safety (Legionella)
You must obtain a Legionella risk assessment from a competent person. This identifies risks from the water system and recommends control measures such as temperature monitoring and flushing protocols for periods of vacancy.
Energy Performance Certificate
If the property is a self-catering holiday let, you must have a valid Energy Performance Certificate (EPC). This is obtained through a domestic energy assessor.
Planning permission and control areas
In most of Scotland, you do not need planning permission to operate a short-term let — the licence is sufficient. However, in a designated short-term let control area, using a residential property for secondary letting is treated as a material change of use under planning law, and you need planning permission in addition to your licence.
As of early 2026, the designated control areas are:
- City of Edinburgh — entire council area (from 5 September 2022)
- Highland Council, Badenoch and Strathspey Ward — (from 4 March 2024)
Other councils may designate control areas in the future. Check with your local council whether your property is affected.
Home sharing (letting while you are present in the property) does not normally require planning permission, even in a control area. Home letting may or may not require planning permission depending on the frequency and scale — occasional holiday lets (for example, during the Edinburgh Festival) are less likely to be treated as a material change of use.
Penalties for operating without a licence
Additional considerations
Council tax and business rates
If you operate a dedicated holiday let (secondary letting) that is available to let for 140 or more days per year, it may be entered on the Valuation Roll for non-domestic rates (business rates) instead of council tax. You may qualify for Small Business Bonus Scheme relief. Contact your local assessor for a determination.
Insurance
Standard home insurance does not normally cover short-term letting. You need:
- Public liability insurance (mandatory licence condition)
- Buildings and contents insurance that explicitly covers short-term letting use
If the property is mortgaged, check whether your lender requires consent for short-term letting use.
Edinburgh visitor levy
From 24 July 2026, accommodation providers in Edinburgh (including short-term let hosts) must collect and remit a 5% visitor levy on overnight stays, capped at 5 consecutive nights per guest. This applies to bookings made on or after 1 October 2025 for stays on or after 24 July 2026. It is the accommodation provider's legal responsibility to collect, report, and remit the levy to the City of Edinburgh Council.
Guest information pack
You must provide guests with a property information pack including emergency contact details, fire escape route, evacuation procedure, how to operate heating and hot water, waste and recycling arrangements, and house rules including maximum occupancy.