Your property
Comparison per year
Before mortgage, income tax and capital gains tax. Not tax or financial advice.
Assumptions
- Your inputs: all income, running costs, agent fees and licence costs are your own figures. We do not estimate what a property could earn.
- Holiday let: if it passes the tests it pays business rates (rateable value × 0.502, less small business rates relief); if not, council tax with the council's second-home premium. The visitor levy, where charged, is paid by guests and passed to the WRA, so it is not counted as your cost.
- Second home: council tax plus the council's 2026/27 second-home premium, using the council's average Band D. Exceptions (such as a holiday-only planning condition) are not applied here; use the checker.
- Long-term let: the tenant pays council tax while living there. For empty months we charge the owner standard council tax with no premium, which assumes the home is unfurnished between tenancies (a furnished home nobody lives in can be charged the second-home premium). Rent Smart Wales registration (£60 online, valid 5 years) is counted as £12 a year.
- Changing from a main home to a holiday let or second home needs planning permission in Eryri National Park. Check planning rules before you switch.
Official figures used
| Second-home premium 2026/27 | Set by each council, up to 300% in law; 150% in Gwynedd, Conwy, Denbighshire and Ceredigion |
|---|---|
| Business rates multiplier 2026-27 | 0.502 (0.515 above £100,000 rateable value) |
| Small business rates relief | 100% up to £6,000 rateable value, tapering to 0% at £12,000 |
| Rent Smart Wales registration | New £60 online / £102 paper; renewal £48 / £87; lasts 5 years |
| Rent Smart Wales licence | Needed if you let or manage it yourself; renewal £230 online / £302 paper if 42+ days early, otherwise £254 / £327 |
| Not registering | An offence: fixed penalty notice of up to £150, prosecution and fines |
Frequently asked questions
Should I switch my holiday let to a long-term let in Wales?
It depends on your income and costs. A long-term let usually means the tenant pays council tax and there is no second-home premium, but you must register with Rent Smart Wales and be licensed or use a licensed agent. A holiday let can pay business rates, often reduced to nothing by small business rates relief, if it passes the 252/182-night tests.
What happens to council tax if I let my property long term?
The tenant who lives there normally pays it. If the property is split into bedsits or let on separate contracts, the owner pays. When nobody lives there, the owner pays.
How much does Rent Smart Wales registration cost?
A new landlord registration is £60 online or £102 on paper, and lasts 5 years. Renewal is £48 online or £87 on paper. If you manage the let yourself you also need a licence, which has its own fee.
Is a second home cheaper than a holiday let in Wales?
Not usually for tax. A second home pays council tax plus the council's premium (up to 150% in 2026/27). A holiday let that passes the tests pays business rates instead, but earns income only if it is actually let.
Does this include income tax?
No. Income tax, mortgage costs and capital gains tax depend on your circumstances. Speak to an accountant.
Sources
- Welsh Government: Council Tax levels, April 2026 to March 2027 (Band D by council)
- Welsh Government: Council Tax dwellings 2026-27 (second-home and empty-home premiums by council, Table 6)
- Business Wales: non-domestic rates multipliers 2026-27
- Business Wales: small business rates relief
- Rent Smart Wales: landlord registration (fees, penalties)
- Rent Smart Wales: licensing renewal (fees)
- Cyngor Gwynedd: who should pay Council Tax
- Eryri: Article 4 direction
Every figure on this page was checked against these sources on 20 October 2026.