Food, Drink & Hospitality

Running an Airbnb in Scotland legally

Plain-English guide for new short-term let hosts covering all the legal requirements for running an Airbnb or holiday let in Scotland, including the mandatory licensing scheme, safety conditions, fees, planning, and penalties.

Scotland
Guide summary

You must get a licence from your local council to run an Airbnb or short-term let in Scotland. Check which type of licence you need, meet safety standards, and apply before accepting guests. Operating without a licence is illegal and can result in a £2,500 fine.

  • Apply for a licence before accepting guests
  • Check if you need home sharing, home letting or secondary letting licence
  • Meet fire, gas, electrical and water safety standards
  • Properties must meet the Repairing Standard from 1 March 2024
  • Get public liability insurance for guests
  • Submit application to your local council with required documents
  • Do not accept guests until licence is granted
  • Display licence details and follow conditions
  • Register with HMRC for tax on rental income
  • Penalty for unlicensed operation: up to £2,500 fine
On this page
Scotland

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 residential accommodation on a commercial basis to guests for whom it is not their only or principal home, unless the accommodation is of a type excluded from the scheme. There is no minimum or maximum stay length in the definition. The scheme covers all of Scotland. Excluded accommodation types (Schedule 1 of the Licensing Order) include aparthotels, accommodation within licensed premises, hotels with planning permission for hotel use, hostels, care accommodation, student accommodation, accommodation in a guest's own tent or caravan, vehicles under way, bothies, and employer-provided accommodation.

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    1. Determine your licence type

    Identify whether you need a home sharing, home letting, secondary letting, or combined licence. Home sharing means guests stay while you are present. Home letting means you let your own home while away. Secondary letting means the property is not your main home (e.g. a dedicated holiday let or investment property). You can apply for a combined home sharing and home letting licence.

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    2. Check for control area requirements

    If your property is in Edinburgh (designated 5 September 2022) or Highland Council's Badenoch and Strathspey Ward (designated 4 March 2024), secondary letting requires planning permission for change of use before or alongside your licence application. Home sharing does not normally need planning permission, even in a control area.

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    3. Meet all mandatory safety conditions

    Before applying, ensure your property meets fire, gas, electrical, and water safety standards (see the safety requirements section below). You must have all certificates and evidence ready to submit with your application.

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    4. Confirm the property meets the Repairing Standard

    From 1 March 2024, all short-term let properties must meet the Repairing Standard. The property must be wind and watertight, structurally sound, and have all installations (water, gas, electricity, heating) in reasonable repair and working order.

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    5. Obtain public liability insurance

    You must have adequate public liability insurance covering guests at your property. Standard home insurance typically does not cover commercial short-term letting.

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    6. Apply to your local council

    Submit your application to the council where the property is located. Include all required safety certificates, proof of insurance, and the application fee. Most councils accept online applications. Contact your council directly for their application form and specific requirements.

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    7. Wait for the council decision

    Councils aim to process applications promptly but have significant discretion on timescales. You must not accept guests until your licence is granted. If your application is refused, you can appeal to the sheriff court within 28 days.

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    8. Display your licence details

    Once granted, you must comply with all conditions including maximum occupancy limits. Provide guests with emergency contact details, fire escape routes, and property information. Councils maintain a public register of licensed short-term lets.

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    9. Set up your tax affairs

    Register for Self Assessment with HMRC if not already registered. Rental income from short-term lets is taxable. You may need to register for VAT if your taxable turnover exceeds the VAT threshold. The Furnished Holiday Lettings tax regime was abolished from April 2025 (Finance Act 2025) — holiday let income is now taxed under the normal property income rules.

Licence duration
First licence up to 3 years (councils may grant shorter periods; renewals may be longer)
Application fees
Set by each council on a cost-recovery basis — fees vary by council and licence type, and are typically banded by occupancy
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 clear, unobstructed fire escape route with emergency lighting where appropriate

Scottish Government guidance also recommends a fire blanket in the kitchen and a suitable fire extinguisher — these are guidance recommendations rather than mandatory Schedule 3 conditions.

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) and include the EPC rating in any adverts or listings for the property. The certificate 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.

Penalty risk

Penalties for operating without a licence

Penalty: Up to £2,500
<p>Operating a short-term let without a licence is a <strong>criminal offence</strong> under the Civic Government (Scotland) Act 1982 (as modified by the Licensing Order 2022). The maximum penalty is a fine of up to <strong>£2,500</strong> (level 4 on the standard scale).</p>
<p>Breaching licence conditions can result in your licence being <strong>suspended or revoked</strong>. Letting platforms may also remove listings that cannot provide evidence of a valid licence number.</p>

Enforced by: Local council licensing authority

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 and actually let for 70 or more days in the year (the test since 1 April 2022), 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.

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 or paid 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. Glasgow (5% from 25 January 2027) and Aberdeen (7% from 1 April 2027) have approved their own schemes — check whether your council has declared a levy.

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.

Legal basis

Official guidance and application links