Edinburgh considers 300% council tax premium for second homes

Edinburgh is implementing new fiscal measures that impact property owners and tourists. Councillors are set to decide on a 300% Council Tax premium for second homeowners, which could see Band H properties taxed at approximately £16,000 per year. This move follows a suspension of a previously scheduled increase, as the council evaluates how such a surcharge might address the city’s housing crisis.

Simultaneously, the city has introduced Scotland’s first visitor levy, a mandatory 5% surcharge on the first five nights of overnight stays in hotels, B&Bs, and short-term lets. While the council estimates the levy has already generated £5 million, critics argue it adds financial pressure to an already expensive tourism market. Performers and arts organizations have expressed concern that rising accommodation costs and new taxes could make attending or performing at events like the Edinburgh Fringe financially unsustainable.