Scotland’s short-term rental regulations are among the most comprehensive in the UK, requiring strict licensing, safety compliance and — depending on location — planning permission before hosts can legally operate. As of 2025, every short-term let (STL) must obtain a local council-issued license, follow extensive safety standards and adhere to local restrictions, including mandatory planning approval in designated control areas such as Edinburgh.

This guide breaks down the full legal framework governing Airbnb and short-term lets in Scotland, detailing licensing rules, mandatory requirements, accommodation eligibility and penalties for non-compliance.

What this guide covers:

This comprehensive compliance resource explains Airbnb rules in Scotland. This includes Scotland’s short-term let licensing system and required documents, license fees and types, planning permission requirements and control areas, mandatory safety and occupancy rules, penalties and enforcement. It basically provides step-by-step requirements for existing and new hosts

This guide excludes general Airbnb hosting tips and focuses strictly on regulatory compliance.

Who this is for:

This guide is designed for Scotland-based Airbnb hosts, UK and foreign investors considering holiday let properties, property owners seeking to convert homes into legal short-term lets and managers operating self-catering properties, serviced apartments or unique accommodation

Whether you're new to hosting or ensuring ongoing compliance for an existing let, this guide outlines every Airbnb regulation in Scotland you must satisfy under Scottish law.

Why this matters:

Since Scotland introduced mandatory short-term let licensing, councils have increased enforcement efforts across all regions, particularly in Edinburgh, Glasgow and popular tourist destinations in the Highlands and Islands.

Failure to obtain a license or meet safety standards can lead to fines of up to £2,500, an immediate ban and even legal action. Strict monitoring across booking platforms — including Airbnb and Vrbo — means unlicensed or non-compliant operations are highly likely to be flagged.

What you’ll learn:

• Scotland’s full short-term let licensing structure

• Required documentation for new and existing hosts

• Control area rules and when planning permission is mandatory

• Mandatory EPC, gas, electrical, and fire safety requirements

• Insurance, occupancy limits, and display obligations

• Penalties, enforcement actions, and exemptions

Understanding Scotland’s Short-Term Let Legal Framework

Scotland’s short-term let rules aim to balance tourism, community wellbeing and housing availability. The legal framework defines what counts as a short-term let, which activities require a licence and how the system regulates hosts across different property types. This section sets out the foundations of short-term letting law so hosts can understand how the licensing scheme applies to their specific accommodation.

Definition of a short-term let

A short-term let is a commercial letting of all or part of a dwelling (house, flat or serviced apartment) to a guest or guests for their temporary residence, where:

• The accommodation offered is a house, flat or serviced apartment (or part of one), not a unit on hotel premises.

• The let is temporary — the guest does not occupy the property as their only or principal home.

• The letting is offered for commercial consideration (i.e. for money or benefit in kind).

• The let is not a private residential tenancy under the legislation covering long-term rentals.

In addition, official guidance notes that it does not matter how many or few nights per year the accommodation is let, a licence is required even if the let is for a single night or just a few nights each year.

The purpose of Scotland’s regulatory framework is to balance:

• Tourism growth

• Housing availability for local residents

• Safety and quality standards

• Responsible operation of holiday lets and second homes

Mandatory short-term let licensing

Since 1 October 2022, any new short-term let in Scotland has required a licence before accepting bookings or guests. Existing hosts who were already operating before that date had to apply by 1 October 2023 to continue operating while their licence application was processed.

From 1 January 2025, all short-term let properties must hold a valid short-term rental licence to operate lawfully. Operating without a required licence is a criminal offence and can lead to fines of up to £2,500.

Key compliance rules:

• A license must be approved before hosting begins

• Existing hosts (operating before Oct 2022) could continue while waiting for approval, but only if they applied before the 2023 deadline

• New hosts must wait for license approval before hosting

• Councils must normally decide your application within 9 months. If they need longer, they must apply to the sheriff court for an extension.

• Recent amendments allow provisional licences in limited circumstances (for example, where a new short-term let is still under construction), but these are granted at the council’s discretion.

Short-term rental licence types in Scotland

1. Home sharing

This license allows you to rent out all or part of your own home while you are living there. It's suitable for individuals who wish to earn income by hosting guests in their primary residence.

2. Home letting

With a home letting license, you can let all or part of your own home while you're not present. This includes scenarios such as renting out your property while on vacation or participating in home exchanges with others.

3. Secondary letting

This license is for letting properties where you do not normally reside. It includes second homes or holiday lets that are not your primary residence.

4. Home-letting and Home-sharing

With this license you can let out all or part of your own home both while you are living there and while you are away. It provides flexibility for hosts who may alternate between living in and renting out their property

Not sure what license you need? Find out here.

Licensing Requirements and Application Process

Scotland’s short-term let licensing system applies to all hosts, but the process differs for new and existing operators. Councils require detailed documentation, safety certificates and in some cases planning permission, before issuing a licence. This section walks through the full application process, required documents, timelines and what hosts need to prepare before submitting their licence application.

Existing vs new hosts

• Existing host

Existing hosts had until October 1, 2023 to apply for a license if they were already providing short-term lets before October 1, 2022.

The council may request evidence of prior short-term letting activity before October 1, 2022, during the application process.

Hosts can continue letting their accommodation while awaiting the council's decision on their license application.

• New host

New hosts must apply for and obtain a license before commencing short-term letting activities.

It is illegal to accept bookings or host guests without a valid license. Failure to comply may result in a fine of up to £2,500 and a one-year ban on license applications.

Required documentation

Councils may vary slightly, but all applicants typically need:

• Proof of identity

• Proof of ownership or permission to let

• Floor plan

• Fire, gas and electrical safety certificates

• EPC (if required)

• Evidence of previous short-term letting (for existing hosts)

• Public liability insurance details

• Confirmation the property meets repairing and tolerable standards

License duration

The local council determines the duration of the license. The first license can last for up to 3 years from its issuance date.

This framework ensures compliance with regulations and clarifies the application process and license duration.

How to apply for a short-term rental license

Your accommodation will need to meet mandatory conditions. Your local council may also set additional conditions.

If your accommodation is in a short-term let control area it is a condition of the license to have or have applied for planning permission.

If it is not in a control area and you do not have planning permission you may still need this to obtain a short-term license. You should check with your local council's planning department to find out.

License fees will likely vary across local councils and depend on the size and capacity of your property.

Cost of a license

The cost of a short-term let license is determined by the local council and varies depending on the property's size and the type of let. The application fee is designed to cover the administrative expenses incurred by the council in processing the license application.

Factors such as the property's occupancy capacity and whether it's used for primary or secondary letting can influence the license cost.

Visit your local council's website for detailed information about short-term let license fees and application procedures for up-to-date information.

Types of accommodation that need a license

Residential and commercial properties in Scotland are covered by the short-term let licensing scheme, which includes:

• B&B and guesthouse

• A boat (fixed and not used as transport)

• Boathouse

• Cabin

• Castle

• Chalet

• Cottage

• An exclusive use venue where accommodation is provided (that does not have a license to sell alcohol)

• Farmhouse

• A holiday caravan or glamping pod that does not already have a caravan site license

• Lighthouse

• Lodge

• Self-catering or holiday let

• Serviced apartments in residential buildings with fewer than 5 serviced units, or where the building does not meet the conditions to be treated as an aparthotel

• Hosts provide services to guests (such as housekeeping, phone desk, reception or laundry)

• Each flat or unit contains its own washing, cooking and dining facilities separate from each of the other flats or units

• There's a management system to prevent anti-social behavior and imposes limits to the maximum occupancy of the flats or units

• Shared home or rooms within a home

• Shepherd hut

• Tent, tipi or wigwam

• Treehouse

• Yurt

Excluded accommodation

You do not need a license for:

1. Aparthotels, meaning a building that:

• is entirely owned by the same person

• has at least 5 serviced apartments, managed and operated as a single business

• has a shared entrance for the serviced apartments

• has serviced apartments that do not share an entrance with any other flat or residential unit in the building

2. Bothy – a building of no more than 2 stories that has:

• houses with no main electricity piped fuel supply or piped mains water supply

• houses at least 100 meters from the nearest public road and from the nearest habitable building

3. A holiday caravan or glamping pod sited within a park with a caravan site license (Caravan Sites and Control of Development Act 1960)

4. Hotels, B&Bs or guest houses with a premises license under the Licensing (Scotland) Act 2005

5. Self-catering accommodation within the grounds of licensed premises or hotel (Licensing (Scotland) Act 2005). The accommodation needs to be specifically mentioned as part of the operating plan

Private residential tenancies and social housing tenancies do not require a license. However, a short-term let license is required in addition to your House of Multiple Occupation (HMO) license if you offer short-term lets.

Operational Rules and Compliance Standards

Licensing approval is only the first step — hosts must continue meeting Scotland’s mandatory safety, maintenance and information display requirements throughout the licence period. From fire and electrical regulations to EPC obligations and occupancy limits, these are core standards every host must follow to remain compliant after their licence is issued.

Planning permission and control areas

Some councils (most notably the entire city of Edinburgh) have designated control zones where planning permission is mandatory for:

• Secondary letting of an entire dwelling that is not someone's principal home

• Some home letting operations

If your property is inside a control area, you must have planning permission or an active planning application before a license can be issued.

If your property is outside a control area, you may still need planning permission — check with your local authority.

Mandatory conditions for all hosts

Repairing and tolerable standards

Properties, including houses and flats, must comply with the repairing and tolerable standards.

Energy performance certificate (EPC)

Many short-term lets are legally required to have a valid EPC, and where one is required the rating must be shown in listings. An EPC is generally required where the whole dwelling is being let as holiday accommodation, but not where only a room within a building (such as a hotel-style room) is being let. Check whether your specific property type requires an EPC under Scotland’s Energy Performance of Buildings Regulations and local council guidance.

Fire safety regulations

Installation of heat, smoke and carbon monoxide alarms.

Documentation (e.g., labels, receipts, photos) proving compliance of furnishings with the Furniture and Furnishings (Fire Safety) Regulations 1988.

Access practical fire safety guidance.

Gas safety

Properties with gas must have a Gas Safety Certificate renewed annually verifying checks by a gas-safe registered engineer.

Electrical installation condition report

An electrical safety inspection by a qualified professional is required at least every five years.

Portable appliance testing report

A qualified individual must generate a report for portable appliances accessible to guests ensuring safety compliance.

Private water supply regulations

Properties with private water supplies must adhere to specific legal standards.

Legionella risk assessment

A Legionella risk assessment is obligatory for all properties.

Information on landlords' Legionella responsibilities is provided on the Health and Safety Executive website.

Insurance requirements

• Buildings insurance: Must cover the accommodation throughout the license period.

• Public liability insurance: Required for the business during each short-term let agreement.

Consult your local council for coverage requirements.

Occupancy limits

The license holder must ensure guest numbers do not exceed the license's specified maximum.

Mandatory information display

You must make sure the following information is clearly accessible to guests in the property:

• A certified copy of your short-term let licence and licence conditions

• Fire, gas and electrical safety information

• Copies of your Gas Safety Report, Electrical Installation Condition Report (EICR) and Portable Appliance Testing (PAT) report

• Instructions on what to do if the carbon monoxide alarm sounds

• Details on how to contact emergency services

In addition, any listing or advert (Airbnb, Vrbo, direct booking website, etc.) must include your licence number, and – where an EPC is required – the EPC rating.

Additional safety and compliance measures

Fire safety laws mandate a risk assessment to identify and mitigate hazards with reasonable measures such as smoke alarms and fire safety plans in place.

Local council and fire service regulations

Local authorities may impose additional conditions and set occupancy limits potentially requiring floor plan submissions.

Floor plan specifications

Submitted floor plans should detail room sizes, escape routes and accommodations for guests with mobility issues among other structural features.

Councils may request a visit for assessment purposes in addition to or instead of floor plan submissions.

Penalties and Enforcement Actions

Short-term let licensing in Scotland carries strict legal consequences for non-compliance. Even if you meet most requirements, operating without the correct licence, breaching safety rules or failing to obtain planning permission where required can trigger enforcement action.

Penalty for hosting without a license

Accepting bookings or accommodating guests without obtaining a license beforehand is illegal. Failure to apply for a license in a timely manner could result in severe consequences.

You may face fines of up to £2,500 if you fail to acquire a license before offering short-term lets.

You could also be banned from applying for a license for one year.

During the period without a license you will not be allowed to offer short-term lets.

Councils actively investigate:

• Unlicensed hosts

• Properties operating illegally in control areas

• Safety non-compliance

• Misrepresentation of ownership or usage

• Exceeding occupancy limits

Other penalties

Separate planning enforcement action (for example in control areas like Edinburgh) can also be taken if a property operates as a short-term let without the required planning permission, and this can carry different or additional penalties to the STL licensing fine.

Taxes and Financial Obligations

Short-term let licensing is separate from your tax obligations. Even if you are fully licensed, you still need to comply with UK tax law (for income tax and reporting) and Scottish rules on property taxes and transaction taxes. Here is a high-level overview of the main tax considerations for Airbnb and short-term let hosts in Scotland.

1. Income tax on your Airbnb and short-term let earnings

If you earn money from Airbnb or any other short-term let platform in Scotland, that income is taxable unless it falls entirely within specific allowances.

• HMRC treats Airbnb/short-term let earnings as property income (or in some cases “trading” income if you run a full-scale business). You must declare it via Self Assessment if your property income exceeds HMRC’s small allowances.

• For most individual hosts, the income is taxed at your usual UK income tax rates, after your personal allowance (frozen at £12,570 through at least the 2025–26 tax year).

• Standard UK reliefs may apply depending on how you host:

  • Property allowance: Up to £1,000 of gross property income can be covered by this allowance instead of claiming expenses.

  • Rent-a-Room relief: If you let out a furnished room in your main home (classic home-sharing), you may be able to earn up to £7,500 per year tax-free under the UK Rent-a-Room scheme, provided you meet the conditions.

The big 2025 change: Furnished Holiday Lettings (FHL) regime is being abolished

Historically, many Scottish holiday lets qualified as Furnished Holiday Lettings (FHL) and benefited from favourable tax rules (e.g. different treatment of mortgage interest, capital allowances and capital gains). From 6 April 2025, the UK Government abolished the FHL regime, so profits from holiday lets are now taxed under the general property income rules instead.

For you as a host, this means:

• You should not assume your Scottish holiday let will receive any special FHL tax treatment beyond the 2024–25 tax year.

• From the 2025–26 tax year onwards, your profits will generally be taxed like any other residential letting income (subject to standard reliefs and allowances).

Because this is a UK-wide change affecting many hosts, it’s wise to speak to an accountant about how this impacts your post-2025 tax bills, mortgage relief and capital gains position.

2. Council tax vs non-domestic rates (business rates)

In Scotland, your short-term let will normally be liable for either:

• Council tax (as a domestic dwelling), or

• Non-domestic rates (NDR), if it qualifies as self-catering holiday accommodation.

Whether you pay council tax or NDR depends on how intensively the property is used as a holiday let:

• To be treated as self-catering holiday accommodation and moved from the council tax list to the valuation roll for non-domestic rates, the property must:

  • Be available to let for at least 140 days in the financial year, and

  • Be actually let for at least 70 days as self-catering accommodation in that year.

• If you don’t meet these thresholds, the property usually stays on the council tax valuation list, and you pay council tax instead of NDR.

If your property is on the valuation roll for NDR:

• You’ll receive a non-domestic rates bill from your council each year.

• Many small operators may qualify for reliefs such as the Small Business Bonus Scheme, which can reduce or in some cases eliminate the rates bill, depending on the rateable value and other factors.

3. Land and Buildings Transaction Tax (LBTT) and the Additional Dwelling Supplement (ADS)

If you buy a property in Scotland to use as an Airbnb or short-term let, you’ll pay Land and Buildings Transaction Tax (LBTT) instead of stamp duty, and in many cases an additional surcharge called the Additional Dwelling Supplement (ADS).

• LBTT is Scotland’s equivalent of stamp duty, payable on most residential property purchases over £145,000 (with reliefs for some first-time buyers).

• ADS is an extra tax charged on top of LBTT when you buy an additional residential property – including second homes, buy-to-lets and holiday lets. It usually applies if:

  • You already own one or more residential properties anywhere in the world, and

  • You’re not replacing your only or main residence.

From 5 December 2024, the ADS rate increased to 8% of the full purchase price (above a £40,000 threshold). This higher rate applies to most purchases of additional properties, including STL investments, from that date onwards.

4. Visitor levy (“tourist tax”)

On top of existing national taxes, Scotland has now legislated for a local visitor levy (often called a tourist tax) on overnight stays.

• The Visitor Levy (Scotland) Act 2024 gives councils the power (but not the obligation) to introduce a levy on paid overnight accommodation, including hotels, B&Bs and short-term lets.

• Local authorities must run consultations and design their own schemes. The earliest levies are expected to go live from spring 2026.

• Edinburgh has announced plans for a 5% visitor levy on overnight stays, capped at five nights, with full enforcement expected from July 2026, covering hotels, self-catering apartments, short-term rentals and similar accommodation.

For hosts, this means:

• The levy is separate from income tax and business rates – it’s a charge collected from guests and remitted to the council.

• If your council introduces a levy, you will likely need to:

  • Add the levy to your nightly prices or display it separately, and

  • Report and pay the collected levy to the local authority under their scheme rules.

Because each council can choose whether to implement a levy and at what rate, you’ll need to monitor your local authority’s plans from 2025–26 onwards.

5. Record-keeping, digital reporting and Making Tax Digital (MTD)

Finally, Scotland-based Airbnb hosts are also affected by UK-wide changes to how landlords report their income to HMRC.

• From April 2026, Making Tax Digital for Income Tax (MTD for ITSA) will become mandatory for many sole traders and landlords whose combined property and self-employment income exceeds £50,000.

• These landlords will have to:

  • Keep digital records of their income and expenses, and

  • Submit quarterly updates and an end-of-year submission to HMRC through approved software, instead of a single annual Self Assessment return.

Even if you’re below the MTD thresholds, you’re still required to:

• Keep accurate records of all Airbnb / STL income (including cleaning fees and extras) and allowable expenses; and

• Retain supporting documentation (invoices, receipts, booking platform statements) for several years in case HMRC asks for evidence.

Common Challenges and Solutions

Operating a short-term let in Scotland involves navigating strict licensing, planning and safety requirements. Many hosts, especially new operators or those converting long-term rentals or second homes, encounter similar barriers during the compliance process.

Challenge: Navigating the licensing application process

The licensing system requires multiple documents, certificates and proofs, and many hosts struggle to gather everything needed or misunderstand council requirements.

Solution:

Create a checklist that includes proof of ownership, floor plans, safety certificates (gas, electrical, PAT), EPC (if required) and evidence of prior letting for existing hosts. Contact your council early to confirm local variations in requirements and submit the application well ahead of peak processing times.

Challenge: Managing properties with private water supplies

Rural hosts using private water supplies may be unfamiliar with Scottish water quality regulations or testing procedures.

Solution:

Contact your local council’s environmental health department to arrange mandatory water testing. Keep records of test results, risk assessments and maintenance to demonstrate compliance during licensing or inspections.

Challenge: Keeping guest occupancy within licensed limits

Some hosts inadvertently exceed their licensed occupancy through sofa beds, large family bookings or misconfigured listings.

Solution:

Set clear maximum occupancy limits in your listing based on your licence conditions. Disable instant book for stays that require manual review, and configure Airbnb/Vrbo to cap guest numbers automatically.

Conclusion & Next Steps

Scotland’s short-term let regulations create a structured, safety-focused environment for tourism, ensuring responsible operations while preserving local communities.

To stay compliant:

• Determine your license type (home sharing, home letting, secondary letting)

• Check whether you’re in a control area requiring planning permission

• Gather safety, fire, gas, electrical, and insurance documents

• Complete the licensing application via your local council

• Maintain ongoing compliance with safety and occupancy rules

With proper preparation — and vacation rental software like Hostaway — hosts can successfully operate short-term lets across Scotland’s cities, islands and iconic Highlands while delivering safe, exceptional guest experiences.

Additional Resources

For the most current and specific guidance, hosts should consult their local council's website for detailed information on license fees, application procedures and any additional local conditions. Official information on the legal framework is available on the Scottish Government's website, while practical fire safety advice can be found through the Scottish Fire and Rescue Service. For questions regarding tax obligations, the official HMRC website provides comprehensive details on property income and the Health and Safety Executive website offers information on landlords' responsibilities.

FAQs

Do I need a license to rent my property on Airbnb for just a few weekends a year in Scotland?

Yes. As of January 1, 2025, all short-term lets in Scotland must have a valid license to operate legally, regardless of how many nights per year the property is let.

What is the penalty for operating a short-term let without a license in Scotland?

Operating without the required license is a criminal offense. It can result in fines of up to £2,500 and a potential ban on applying for a license for one year.

What is a "control area" and how does it affect my short-term let?

A control area is a designated zone where planning permission is mandatory for secondary letting of an entire dwelling. The entire city of Edinburgh is a notable example. If your property is in a control area, you must have or have applied for planning permission before a short-term let license can be issued.

What are the main safety certificates I need for my license application?

You will typically need a series of safety documents, including an annual Gas Safety Certificate (if applicable), an Electrical Installation Condition Report (EICR) from the last five years, a Portable Appliance Testing (PAT) report and proof of compliance with fire safety regulations, such as the installation of smoke, heat and carbon monoxide alarms.

Are the tax rules for Furnished Holiday Lettings (FHL) still in effect in 2025?

No. The UK Government abolished the FHL regime from April 6, 2025. This means profits from holiday lets will be taxed under the general property income rules, and the previous tax advantages associated with FHL status will no longer apply for the 2025-26 tax year and beyond.

Do I need to display my license information for guests?

Yes. You are required to display a certified copy of your short-term let license and its conditions in a place that is clearly accessible to guests within the property. Your license number must also be included in all online listings and advertisements.